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WorksheetsOTB Ch 31 Stocks
Total questions: 50
Worksheet time: 25mins
Dividends are guaranteed.
True
False
Dividends reflect the company's earnings.
True
False
Dividends are payouts to shareholders.
True
False
New and young companies typically offer dividends.
True
False
Which animal represents a strong market?
Bear
Bull
Which animal represents a weak market?
Bear
Bull
Companies detail the status of the business with financial reports and summaries in this document.
Prospectus
Annual Report
Wall Street Journal
Marketwatch.com
This document is provided to potential investors as a written offer to sell securities.
Prospectus
Annual Report
Wall Street Journal
Marketwatch.com
US Congress is at the top of the regulatory pyramid.
True
False
Which entity is at the bottom of the regulatory pyramid?
US Congress
Securities and Exchange Commission
Stock Exchanges
Individual Brokerage Firms
Minimizing your risk by purchasing the same stock in regular intervals at various stock prices is called...
Diversification
Dollar Cost Averaging
Buying and Holding
Prospectus
Investments in a variety of stocks, bonds, real estate, and collectibles is called...
Diversification
Risky
Dollar Cost Averaging
Inclusion
Which example is more diverse?
A stock portfolio with all tech stocks
A stock portfolio with stocks from a variety of industries
A stock portfolio with stock in 1 company
Buy low and sell high is the basic principle in making money. What is it called when you sell high first and then buy low?
Short Selling
Buying on Margin
Buying and Holding
Which investment is considered to have the lowest risk?
Commodities
Collectibles
Real Estate
Savings Bonds
Which investment offers the highest potential rate of return?
Savings Account
Certificate of Deposit
Municipal Bond
Blue-Chip Stocks
High Risk =
High Reward
Low Reward
Low Risk =
Low Reward
High Reward
How much equity do you have in this property?
Value = $250,000
Debt = $50,000
Equity = ??
$250,000
$50,000
$200,000
$300,000
Equity = Market Value - Debt
True
False
A commodity is a raw material or primary agricultural product that can be bought and sold.
True
False
Bonds provide ownership stake in a company.
True
False
Which provides and ownership stake with potential voting rights?
Stocks
Bonds
Companies raise capital by issuing _______ to investors. In return, the investors earn interest over time.
Stocks
Bonds
As a company converts from private to public, a(n) _______ is issued.
IPO
PPO
HMO
ADA
IPO stands for....
Initial Public Offering
Interest Providing Operation
International Public Organization
Initial Price Observation
All stocks are bought and sold on a stock exchange.
True
False
Public company stocks are bought and sold on stock exchanges.
True
False
When the cost of goods increases more than the value of stocks.
Investing
Inflation Risk
Stock
Stock Index
Stock Exchange
The Dow Jones Industrial Average is a(n)
Investing
Inflation Risk
Stock
Stock Index
Stock Exchange
A marketplace to buy and sell stocks.
Investing
Inflation Risk
Stock
Stock Index
Stock Exchange
Share of ownership in a company.
Investing
Inflation Risk
Stock
Stock Index
Stock Exchange
Putting money into stocks.
Investing
Inflation Risk
Stock
Stock Index
Stock Exchange
Buying and selling stock based on minute-by-minute changes is called...
Day Trading
Speculative Stock
Yield
Stock Exchange
This type of investment is a way for an investor to share risk with others by pooling money and purchasing diversified securities.
Preferred Stock
Common Stock
Blue-Chip Stock
Mutual Fund
This is the primary form of ownership in a company.
Preferred Stock
Common Stock
Blue-Chip Stock
Mutual Fund
Yield refers to the return on investment, or the amount of money an investment earns.
True
False
While not the most liquid, stocks are still considered liquid assets because they can be turned into cash quickly.
True
False
Speculative stocks are safer than blue-chip stocks.
True
False
If a company fails, common stockholders are paid before preferred stockholders.
True
False
You can automatically become a partner in a company by purchasing stocks in a company.
True
False
Which is the second largest stock exchange in the world?
NYSE
NASDAQ
Chicago Stock Exchange
IPO
Which is the largest stock exchange in the world?
NYSE
NASDAQ
Chicago Stock Exchange
IPO
Market capitalization is the value of all outstanding shares of a company. (Stock price x number of shares)
True
False
Dow Jones Industrial Average...
Tracks stocks for a set of 30, well-established companies
Tracks stocks of 500 large cap companies who are leaders of industry
Is a stock exchange
S&P 500...
Tracks stocks for a set of 30, well-established companies
Tracks stocks of 500 large cap companies who are leaders of industry
Is a stock exchange
Profit from the sale of an asset.
Capital Gain
Bond
Dividend
Rate of Return
An index fund is designed to mimic a stock market.
True
False
Where can historical stock prices and investment information can be found?
marketwatch.com
prospectus
annual report
Some sort of broker is required to buy and sell stocks on an exchange.
True
False
