WorksheetsWhat is Stock?
Total questions: 24
Worksheet time: 12mins
Name
Class
Date
1.
Profits represent ownership of shares of a company.
a)
True
b)
False
2.
A dividend is a portion of the company's profits paid to its shareholders.
a)
True
b)
False
3.
Investment bankers buy shares of stock on the same type of market that the general public does.
a)
True
b)
False
4.
If a company issues dividends, preferred stock holders are paid the dividends first.
a)
True
b)
False
5.
If a company fails, it is possible for stockholders to lose money in addition to the amount they invested.
a)
True
b)
False
6.
You can only buy stock in publicly held corporations.
a)
True
b)
False
7.
Holders of preferred stock usually do not have voting rights
a)
True
b)
False
8.
Risk is only associated with the purchase of common stocks.
a)
True
b)
False
9.
The general public buys new issues of stock on the primary market.
a)
True
b)
False
10.
Common stock is more prone to rapid changes; therefore, there is more risk associated.
a)
True
b)
False
11.
People who invest in the stock market will automatically make money.
a)
True
b)
False
12.
A person who is 25 very likely will have a different risk tolerance when investing than a person who is 55.
a)
True
b)
False
13.
A tombstone ad is prepared for companies that are facing bankruptcy and financial failure.
a)
True
b)
False
14.
Preferred stock means the company is preferred over other companies in a particular industry.
a)
True
b)
False
15.
Risk is only associated with the purchase of common stocks.
a)
True
b)
False
16.
Shares of a company that do not guarantee a dividend and have more risk and volatility.
a)
common stock
b)
preferred stock
c)
preferential stock
d)
basic stock
17.
Holders of this stock have the right to vote for the Board of Directors as well as issues that come before the board at the annual stockholders meeting.
a)
Basic stock
b)
Preferred stock
c)
Preferential stock
d)
Common stock
18.
Part of a company’s profits (earnings) that it pays as money to stockholders
a)
common stock
b)
share
c)
dividends
d)
interest
19.
The amount of money that remains after subtracting the company’s expenses from its revenue.
a)
dividends
b)
earnings
c)
price
d)
share price
20.
Someone who risks funds by purchasing financial products with the hope the investments will increase in value over time.
a)
customer
b)
consumer
c)
investor
d)
provider
21.
The initial sale of stock to the public by investment bankers.
a)
Opening day
b)
IPO
c)
Intro Product Offer
d)
Company buyout
22.
Indicates how much and how quickly the value of an investment, market, or market sector changes.
a)
Volatility
b)
Rapidity
c)
Industry Sectors
d)
Index
23.
Stockholders can only make money by collecting dividends.
a)
True
b)
False
24.
When you own stock, you have
a)
a piece of the company
b)
a right to dictate how the company runs
c)
a guarantee of earning money
100 %
