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The Stock Market Game: Before You Invest Pre-Test Part 1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Investments that have high risk may provide higher returns over time than investments with loss risk.

a)

True

b)

False

2.

Based on the Rule of 72, if you invested money and earned 6% interest, your money would double in

a)

12 years

b)

72 years

c)

8 years

3.

Cody owns 100 shares of PEP stock. PEP pays an annual dividend of $4.00 per share. Cody will receive his first quarterly payment on March 30. The dividend check will be for:

a)

$400

b)

$100

c)

$4.00

4.

Which of the following is not a listing requirement for the NYSE?

a)

earnings

b)

number of shares

c)

type of products/services offered

5.

A company gets money from shareholders when:

a)

it makes a profit

b)

shares are traded between buyers and sellers

c)

its stock is issued

6.

IPO means:

a)

initial public offering

b)

investor protection option

c)

income producing opportunity

7.

If you own 100 shares of MartCo stock, valued at $15.45 per share, and this stock has split 2 for 1, then this means that

a)

you now own 200 shares of MartCo stock worth $1,545.00

b)

you now own 100 shares of MartCo stock worth $772.50

c)

you now own 200 shares of MartCo stock worth $3,090.00

8.

Which stock closed nearest its 525 week high?

a)

CocaCola

b)

PapaJohn

c)

Microsoft

9.

What was the closing price for PapaJohns stock on 4/19/06?

a)

$28.35

b)

$29.25

c)

$28.80

10.

How many shares of Microsoft were traded?

a)

33900

b)

3,390,000

c)

33,900,000

11.

Which stock's closing price showed the least change from the previous day?

a)

CocaCola

b)

Disney

c)

Microsoft

12.

The symbol pf following Disney means that this stock is

a)

preferred stock

b)

privately funded

c)

performing at a higher than usual profit margin

13.

If you bought 120 shares of Disney at its highest price of the year, and sold it at its lowest price of the year, what would be your capital gain/loss?

a)

$1,164 capital gain

b)

$1,164 capital loss

c)

$6,708 capital gain

14.

Owning a share of stock means:

a)

you will profit as a buyer

b)

you own part of a company

c)

you share earnings with the company

15.

Interest earned on interest occurs with

a)

diversification

b)

compounding

c)

buying on margin