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Investing In Stocks. Basics 1

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.
What is the primary reason for a company to issue stock?
a)
The stocks help investors earn a higher rate of return
b)
To raise money to grow the company
c)
To distribute the risk of bankruptcy across more investors
d)
To increase greater awareness of the company
2.

The chance of loss. (a)  

Choose from the below words
Stock
Reward
Risk
Real Estate
3.
a unit of ownership of a company
a)
common stock
b)
government bond
c)
corporate bond
d)
equity capital
4.

Dividends are_____?

a)

Money shareholders lose in stock.

b)

Money shareholders pay to buy stock.

c)

Stock that splits.

d)

Money shareholders received from stock profits.

5.

What is the differences between stocks and bonds?

a)

They are both investments.

b)

A stock is what corn grows on, and a bond gets you out of jail.

c)

Stock represents ownership, and bonds represents your word.

d)

A stock represents ownership, and bonds represents a loan.

6.

Type of stock owned by voting members

a)

Income

b)

Growth

c)

Preferred

d)

Common

7.

When investing, ______ risk provides greater _______,

a)

higher, returns

b)

higher, liabilities

c)

lower, returns

d)

lower, liabilities

8.

A _______ corporation is a company that issues stock to a small group of people.

a)

private

b)

public

c)

municipal

d)

government

9.

A _______ corporation is one that sells its shares openly in stock markets.

a)

private

b)

public

c)

municipal

d)

government

10.

Company’s first or initial sale of stock to the public.

a)

IPO

b)

Securities

c)

Index

d)

Stock Exchange