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EPF Investing - Day 2

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What type of stock has preferential treatment to dividends and in time of bankruptcy?

a)

Common

b)

Options

c)

Preferred

d)

Short selling

2.

A virtual marketplace where stock traders meet to buy and sell stock is a(n)...

a)

marketplace

b)

platform

c)

board

d)

exchange

3.

Stock prices fluctuate because of ...

a)

China

b)

supply and demand

c)

inflation

d)

speed of transactions

4.

When a company first decides to issue stock, this is known as a(n) ...

a)

stock award

b)

initial public offering (IPO)

c)

venture capitalist

d)

stock option

5.

The volume on a stock quote refers to _______.

a)

The number of people watching the stock

b)

The number of shares traded that day

c)

The trading price range of the stock

d)

The value of the stock

6.

Why do companies sell stock?

a)

raise money for the company

b)

prestige

c)

to allow the executives to get rich

d)

to loan it out

7.

In reading a stock market quote, what is the ticker symbol?

a)

The amount by which the stock is expected to change each day

b)

Another name for the 52-week high

c)

The dollar amount of the previous day's closing price

d)

Shorthand for the company name (e.g. International Business Machines becomes IBM)

8.

What is the market capitalization (market cap) on a stock quote?

a)

Based on the current share price, this is the total estimate of the value of the company

b)

The amount of the dividend paid

c)

The average volume of shares traded over the last 10-days

d)

The price of the shares divided by the earnings of the company

9.

Why is it important to make sure NOT to just accept an investment analyst position on a stock?

a)

They are overly optimistic

b)

Analysts may make money from their recommendation

c)

Analysts may own shares of the stock recommended

d)

All of the above

10.

If an analyst has a price target set, what does that mean?

a)

This is the price that you should buy the stock

b)

This is the lowest price that the analyst would sell the stock at

c)

This is the price that they are expected the stock to trade at within the next year

d)

This is where mutual funds buy the stock