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WorksheetsStock Market Review
Total questions: 57
Worksheet time: 33mins
Name
Class
Date
1.
The total earnings divided by total outstanding shares of a stock is called
a)
Debt to Asset Ratio
b)
Earnings/Share
c)
P/E
d)
Return on Average Assets
2.
Cash payment (per share) made by the company to its shareholders is called
a)
Beta
b)
Bid
c)
Dividend
d)
Market Cap
3.
Price at which someone is willing to buy a stock- the price you would get is you sold it is called
a)
Ask
b)
Bid
c)
Last
d)
Open
4.
Which type of shareholder gets dividends first?
a)
Common stock
b)
Preferred stock
c)
Treasury stock
5.
What is the price at which stock is bought and sold?
a)
Par Value
b)
Stated value
c)
Authorized value
d)
Market value
6.
If a business wants to raise capital but not create debt, it can
a)
float a bond issue
b)
issue common stock
c)
borrow money from a commercial bank
d)
borrow money from the government
7.
It is free to buy stocks
a)
True
b)
False
8.
People who own stocks are guaranteed a return on the money they have invested in stocks.
a)
TRUE
b)
FALSE
9.
Stocks represent ownership in a corporation.
a)
TRUE
b)
FALSE
10.
One way stockholders make money is by selling their stock for more money than they paid for it.
a)
TRUE
b)
FALSE
11.
Stockholders can reduce the risk on their stock investment by diversifying their portfolios.
a)
TRUE
b)
FALSE
12.
Common stock ownership gives investors
a)
voting rights in shareholder meetings
b)
guaranteed dividends
c)
lower risk with a higher rate of return
13.
Why does a company issue stock?
a)
to brag about their profits
b)
to attract money
c)
to gain publicity
d)
because it is required by law
14.
The possibility of losing some or all of a particiular investment.
a)
risk
b)
index
c)
industry
d)
profit
15.
Represents shares of ownership in a company.
a)
stock
b)
portfolio
c)
volume
d)
industry
16.
A company that sells stock on the stock market.
a)
private company
b)
market capitalization
c)
public company
d)
stock market
17.
A sum of money paid to shareholders of a corporation out of its earnings.
a)
index
b)
dividend
c)
profit
d)
invest
18.
A particular market where stocks and bonds are traded.
a)
market capitalization
b)
portfolio
c)
stock market
d)
shareholder
19.
A holder or owner of stock in a company or corporation.
a)
stock market
b)
shareholder
c)
portfolio
d)
industry
20.
To put money to use by purchasing something offering potential profitable returns as interest, income, or appreciation in value.
a)
portfolio
b)
stock
c)
invest
d)
index
21.
Stocks are items found in the storeroom of a grocery store.
a)
False
b)
True
22.
Only rich people invest in the stock market.
a)
True
b)
False
23.
Most stocks on the stock market are sold by the United States Government.
a)
True
b)
False
24.
Stock markets are open on business days around the clock, around the world.
a)
True
b)
False
25.
Sometimes companies buy their own stocks on the stock market.
a)
True
b)
False
26.
Buying stocks is a sure way to make money.
a)
True
b)
False
27.
It is hard to buy a good stock today because all the good ones have already been purchased.
a)
True
b)
False
28.
People can buy stocks on the Internet.
a)
True
b)
False
29.
What is the stock market?
a)
A type of farmers market where people buy and sell food.
b)
A place where parts of businesses are bought and sold.
c)
A special type of grocery store that sells stocks.
d)
A type of bank that gives out loans to new businesses.
30.
The stock market is a physical place.
a)
Yes, it's located in most major cities around the world.
b)
No, trading is all done online.
c)
Yes and No, there are physical places where stocks are sold, but they are also sold virtually.
31.
You can buy stock in any company in the world.
a)
True, all companies are required to offer stock.
b)
False, a company is only listed on the stock exchange if it wants to be.
32.
The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important?
a)
It tells Americans how much debt the country is in.
b)
It helps economists predict when a stock market crash will happen.
c)
It tells Americans how many jobs are out there.
d)
It provides a snapshot of how the stock market and the US economy is doing.
33.
As long as you are 18 years old and have some money, you can invest it in the stock market.
a)
True
b)
False
34.
Apple is releasing a new iPhone that is predicted to change the cell phone world. Millions of people have pre-ordered it. What do you think will happen to their stock?
a)
It is likely to go up.
b)
It is likely to go down.
35.
You decide that you want to invest a little bit of money in Apple stock. But in order to do that you need to figure out their stock symbol. What is the symbol that Apple uses on the stock market? Use the image to help you figure it out.
a)
AAPL
b)
APPLE
c)
IPHONE
d)
STEVEJOBS
36.
Approximately how much money was one share of Apple selling for last night? Use the image to help you.
a)
213.05
b)
113.05
c)
33.05
d)
13.05
37.
You have $250 that you are willing to invest in Apple's stock. If Apple's stock is selling for $113.05 a share, how many shares could you buy?
a)
1
b)
2
c)
3
d)
4
38.
Over the course of the day, the head of Apple's company is imprisoned for not paying his taxes. What do you think will happen to Apple's stock?
a)
It will go up.
b)
It will go down.
39.
Apple stock plummets and now you have to decide if you hold onto your stock in the hopes that it goes back up, or sell it at a loss. Apple stock is now selling or $54.76 a share. You have 2 shares. When you first bought them their total value was $226.10. What is their total value now?
a)
109.52
b)
22.10
c)
557.22
d)
5.05
40.
In general, Investments with higher risk may provide higher returns over time than investments with less risk.
a)
True
b)
False
41.
IPO means
a)
investor protection options
b)
initial public offering
c)
income product opportunity
42.
On which exchange would you find Microsoft?
a)
NYSE
b)
NASDAQ
c)
AMEX
43.
The two major stock exchanges are
a)
NASDAQ & NYSE
b)
Dow Jones Industrial Average & S&P 500
c)
NYSE & American
d)
NASDAQ & DJIA
44.
Do stockholders run the day-to-day operations of a corporation?
a)
Yes
b)
No
c)
Maybe so
d)
Sometimes
45.
This type of business is owned by many people called stockholders.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
46.
National Association of Securities Dealers Automated Quotations, or NASDAQ,
a)
uses the same trading system as the NYSE.
b)
uses a computer automated system for trading
c)
uses ebay to help make the trades
d)
uses stockbrokers in conjunction with the Dow to make trades
47.
What is NASDAQ?
a)
The biggest stock market in the world
b)
What stocks are called when they are bought and sold
c)
Certificates certifying you own a stock
d)
An automated system for trading stocks
48.
What is the goal of an investor?
a)
Buy low and sell high
b)
Keep a stock for their entire life
c)
Open a new investment account
d)
Help a company get bigger
49.
When you buy a stock, most of the money goes towards...
a)
A large part of the government agency that oversees all stock market transactions.
b)
Most of the fees associated with the New York Stock Exchange.
c)
The paper that the certificate is printed on.
d)
A part of everything that the company owns like buildings, chairs, computers.
50.
Where are some other stock exchanges?
a)
Los Angeles, San Francisco, and Atlanta
b)
Boston, Chicago, and San Francisco
c)
Chicago, Las Vegas, Detroit
d)
Buffalo, Athens, Lawrenceville
51.
In 1792, twenty-four merchants signed an agreement that started the ______ ?
a)
New York Stock Exchange
b)
NASDAQ
c)
S & P 500
d)
DOW Industrial Average
52.
The NYSE is an exchange where daily auctions (the biding of stocks) determine the price for thousands of different stocks.
a)
True
b)
False
53.
The S&P 500 is a stock exchange in Chicago of 500 random companies.
a)
True
b)
False
54.
What are stock shares?
a)
Certificate showing partial ownership of a company
b)
Certificate showing a company's retirement system
c)
Certificate showing a company's dividends
d)
Certificate showing a company's income
55.
Commission on stocks are paid to who?
a)
Stock market
b)
Stock holder
c)
Stock exchange
d)
Stock broker
56.
What is an IPO?
a)
when a company first sells stock to the public
b)
a new Apple product
c)
when the government creates shares on the stock exchange
d)
when the company's shareholders have a meeting
57.
All of the following are differences between common stock and preferred stock EXCEPT:
a)
Common stock is more expensive and preferred stock is cheaper
b)
Preferred stock is more expensive and common stock is cheaper
c)
Ownership of common stock allows you to vote for the board of directors for the corporation
d)
Ownership of preferred stock allows you to receive dividends, which can be paid out even if the company fails
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