WorksheetsEpic Stock Market Review
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
What is the AMEX?
a)
American Stock Exchange
b)
Chicago Board Options Exchange
c)
Chicago Mercantile Exchange
d)
National Association of Securities Dealers Automated Quotation System
2.
What is the CBOE?
a)
American Stock Exchange
b)
Chicago Board Options Exchange
c)
Chicago Mercantile Exchange
d)
National Association of Securities Dealers Automated Quotation System
3.
What is the CME?
a)
National Association of Securities Dealers Automated Quotation System
b)
Chicago Mercantile Exchange
c)
Chicago Board Options Exchange
d)
American Stock Exchange
4.
What is the NASDAQ?
a)
Chicago Board Options Exchange
b)
Chicago Mercantile Exchange
c)
National Association of Securities Dealers Automated Quotation System
d)
American Stock Exchange
5.
What is the NYSE?
a)
Chicago Mercantile Exchange
b)
American Stock Exchange
c)
National Association of Securities Dealers Automated Quotation System
d)
New York Stock Exchange
6.
What do exchanges require companies to satisfy before they will let the stock trade?
a)
American depository receipts
b)
Number of shares available, market cap, share price and financial benchmarks.
c)
Open an investment account with a broker
d)
Over-the-counter
7.
What is the OTC?
a)
financial benchmarks
b)
Number of shares available
c)
market cap
d)
Over-the-counter
8.
What is the ADR?
a)
Over-the-counter
b)
American depository receipts
c)
American depository receipts
9.
How do I start investing in stocks?
a)
Number of shares available, market cap, share price and financial benchmarks.
b)
Open an investment account with a broker
c)
Foreign companies
d)
Either they did not satisfy the listing requirements or the company chooses not to pay the exchange fees.
10.
How much money do I need to start investing in stocks in a perfect world?
a)
$100,000
b)
$10
c)
Any amount
d)
$10,000
11.
What should you try and keep your commission costs to?
a)
5.0%
b)
1.0%
c)
10.0%
d)
0.5%
12.
Which should I buy, stocks or bonds?
a)
Niether
b)
Both
c)
Stocks
d)
Bonds
13.
How do I know which stock to buy?
a)
Flip a coin
b)
Guess
c)
Value, Growth, Profitability, News, Comfort Level
d)
Eeny, meeny, miny, moe
14.
How do I know when to sell a stock?
a)
The reason you bought the stock no longer applies.
b)
The company has fundamentally changed, or the business has fundamentally changed.
c)
You need the money.
d)
All of the above
15.
How do would you track your stock?
a)
Blood Hound
b)
Look at the internet and follow along daily.
c)
Friendly romurs
d)
Newspaper
16.
What is a corporation?
a)
A government association
b)
A institution run by the state
c)
A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
d)
One person selling cooking supplies door to door
17.
What are the advantages of a corporation?
a)
Generally, a corporation's shareholders are not liable for any debts incurred or judgments handed down against the corporation.
b)
Shareholders only risk their equity in the corporation.
c)
Shareholders only risk their equity in the corporation.
d)
All of the above
18.
Which is not a disadvantages of a corporation?
a)
Shareholders only risk their equity in the corporation.
b)
Excessive tax filings.
c)
The disadvantages of a corporation are as follows: Double taxation.
d)
Depending on the type of corporation, it may pay taxes on its income, after which shareholders pay taxes on any dividends received, so income can be taxed twice
19.
Which is not a difference of private and public corporations?
a)
A private company can be a corporation, a limited liability company, a partnership, or a sole proprietorship, as long as the shares are privately held and not traded publicly.
b)
Generally, a corporation's shareholders are not liable for any debts incurred or judgments handed down against the corporation.
c)
Although private companies are legally required to file certain documents with their state and follow required compliance laws for shareholders, public companies must follow strict government regulations.
d)
Although private companies are legally required to file certain documents with their state and follow required compliance laws for shareholders, public companies must follow strict government regulations.
20.
What protections do individuals have when they incorporate their private businesses?
a)
Tax flexibility and incorporation tax benefits
b)
Enhanced credibility
c)
Personal asset protection;
d)
All of the above
21.
What is not a characteristic of a C corporation?
a)
the profits are passed on to the shareholders, and are taxed based on personal returns.
b)
its profits are taxed separately from its owners
c)
As opposed to a sole proprietor or an LLC, corporations are usually at a lower risk of being audited by the government.
d)
limited liability towards business debts.
22.
What is not a disadvantages to becoming a C corporation?
a)
The sheer amount of required proceedings can be overwhelming.
b)
can deduct the cost of benefit as a business expense
c)
Double Tax: When a C corporation earns income, the C corporation is taxed.
d)
Complicated Formalities: To form, a corporation must draft articles of incorporation and bylaws.
23.
What is not an attribute of an S corporation?
a)
An eligible domestic corporation can avoid double taxation
b)
Only the shareholders are taxed
c)
profits and losses can pass through to your personal tax return
d)
There is no binding on the type of investors
24.
What is not an advantage to becoming an S corporation?
a)
Double Tax
b)
Ability to take on More Investors
c)
Business Expense Write–Off
d)
No Double Taxation
25.
What is a LLC?
a)
is a special type of corporation created through an IRS tax election
b)
is a business term that is used to distinguish this type of entity from others, as its profits are taxed separately from its owners
c)
A limited liability company
26.
Which is not a disadvantage to becoming a LLC?
a)
subject to self-employment taxes, currently equal to a combined 15.3%
b)
Fewer corporate formalities
c)
may end up paying more taxes
d)
Profits subject to social security and medicare taxes.
27.
When people talk about stocks they are usually referring to this type. In fact, the majority of stock is issued is in this form.
a)
Common
b)
Penny
c)
Preferred
28.
_________ stock represents some degree of ownership in a company but usually doesn't come with the same voting rights.
a)
Common
b)
Penny
c)
Perferred
29.
__________ is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy.
a)
Need but want other things
b)
I just want it
c)
Don't want it or need it, but I have the money to spend
d)
Supply and Demand
30.
___________ refers the total dollar market value of a company's outstanding shares.
a)
Outstanding Shares
b)
Market Capitalization
c)
Supply and Demand
d)
Earnings
31.
_______________ refer to a company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.
a)
Market Capitalization
b)
Earnings
c)
Outstanding Shares
d)
Dividend
32.
__________ typically refer to after-tax net income.
a)
Dividends
b)
Stocks
c)
Earnings
d)
Taxes
33.
_____________ is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
a)
Outstanding Shares
b)
Common Stock
c)
Earnings
d)
Dividend
34.
_____________ is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. It was invented in 1896.
a)
New York Stock Exchange - NYSE
b)
Dow Jones Industrial Average - DJIA
c)
American Stock Exchange - AMEX
d)
National Association of Securities Dealers Automated Quotation Syaytem - NASDAQ
35.
____________ by definition, means “one owner”. Most small businesses operate as sole proprietorships. This is the simplest form of organization and allows the single owner to have sole control and responsibility.
a)
Sole Proprietorship
b)
General Partnership
c)
Limited Partnership
d)
Limited Liability Company
36.
_____________ is similar to a sole proprietorship, except that two or more parties are involved. In a business partnership, the parties that join forces could be individuals, corporations, trusts, other partnerships, or a combination of all of the above.
a)
Limited Liability Partnership
b)
General Partnership
c)
Limited Partnership
d)
Limited Liability Company
37.
____________ is a partnership formed by two or more persons having one or more general partners and one or more limited partners.
a)
Limited Liability Company
b)
Limited Liability Partnership
c)
Corporation
d)
Limited Partnership
38.
______________ is a hybrid between a partnership and a corporation, providing the liability protection of a corporation, with the advantage of being treated as a partnership.
a)
Sole Proprietorship
b)
Limited Liability Company
c)
Limited Liability Partnership
d)
Corporation
39.
________________ status an existing partnership files an election with the Corporation Bureau, Department of State on form DSCB: 15-8201A
a)
Limited Liability Partnership
b)
Corporation
c)
Sole Proprietorship
d)
General Partnership
40.
Advantages of a _____________ are that liability is limited to the amount owners have paid into their share of stock, and the corporation's continuity is unaffected by the death or transfer of shares by any of the owners.
a)
Sole Proprietorship
b)
Corporation
c)
General Partnership
d)
Limited Partnership
41.
An _______ is an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis.
a)
401(k) Plans
b)
403(b) Plans
c)
IRA
d)
Brokerage Account
42.
A ________ is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.
a)
403(b) Plans
b)
IRA
c)
Brokerage Account
d)
401(k) Plans
43.
A _________ plan is a retirement plan for certain public school employees, employees of tax-exempt organizations and ministers.
a)
Brokerage Account
b)
403(b) Plans
c)
IRA
d)
401(k) Plans
44.
You make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement.1 Many retirees also find themselves in a lower tax bracket than they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate.
a)
Traditional IRA
b)
Rollover IRA
c)
Roth IRA
45.
You make contributions with money you’ve already paid taxes on (after-tax), and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.
a)
Rollover IRA
b)
Traditional IRA
c)
Roth IRA
46.
A Traditional IRA intended for money "rolled over" from a qualified retirement plan. Rollovers involve moving eligible assets from an employer-sponsored plan, such as a 401(k) or 403(b), into an IRA.
a)
Rollover IRA
b)
Roth IRA
c)
Traditional IRA
47.
__________ typically trades outside of the major market exchanges at a relatively low price and has a small market capitalization.
a)
Common Stock
b)
Penny Stock
c)
Preferred Stock
d)
S&P 500
48.
The term penny stock has evolved with the market. In the past, penny stocks were stocks that traded for less than a ______ per share.
a)
$100
b)
$10
c)
$1
d)
$.01
49.
Penny stocks are more suitable for investors with a ______ tolerance for risk.
a)
Low
b)
Medium
c)
High
d)
Moderate
50.
What Makes Penny Stocks So Risky?
a)
Lack of Information Available to the Public
b)
No Minimum Standards
c)
Lack of History, and Liquidity
d)
All options are correct
100 %
