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WorksheetsUnit 2 - Stocks Review (Week 1)
Total questions: 21
Worksheet time: 12mins
What does IPO stand for?
Initial Private Offer
Independent Public Officer
Initial Public Offering
Independent Public Opinion
True or False - Owning stock in a company means that you are a shareholder of the company.
True
False
True or False - You can invest in private companies on the New York Stock Exchange.
True
False
Check all that apply - Companies undergo an IPO in order to...
go public
list shares on a stock exchange
raise capital
consolidate control of the company
Check all that apply - Companies issue shares of stock to raise capital for...
research and development
paying off debt
expanding the company
hire more employees
True or False - A public company can become private again by buying back a controlling share (51% or more) of their outstanding stock.
True
False
What does the acronym SEC stand for?
Securities and Exchange Commission
Securities and Equity Commission
Stocks and Exchange Commission
Stock and Equity Commission
True or False - The SEC protects businesses from consumer overreach and overwhelming legal challenges.
True
False
True or False - Companies seeking to go public manage the IPO process internally with little to no counsel.
True
False
Check all that apply - The following are steps in the IPO process.
Filing with the SEC
Pricing shares of stock
Hiring a large investment bank/firm
Buying back shares of stock
True or False - Public companies file quarterly financial documents that are accessible to the public and investors.
True
False
True or False - Private companies have access to public funding.
True
False
Check all that apply - Private companies can be owned by...
Founders
Management
Private Investors
Public Investors
What is a dividend?
Money a stockholder has to pay to own a stock
The rate at which banks charge companies to borrow money
Money paid quarterly by a company to its shareholders
The money left over after subtracting monthly expenses from your monthly net income
From 2007-2016, companies spent 55% of their earns on what?
Stock Buybacks
Dividends
Research and Development
Employee Wages
Check all that apply - Companies can use their earnings to...
Increase wages
Pay dividends
Expand their business
Research and develop new products
True or False - Insider trading involves trading in a public company's stock by someone who has non-public, material information about that stock for any reason.
True
False
What does ROI stand for?
Return on Interest
Return on Income
Return on Investment
Return of the Sith
True or False - ROI equals your selling price minus your initial price, divided by your initial price, multiplied by 100.
True
False
True or False - An index measures the price performance of a basket of securities.
True
False
True or False - A “bull” by definition is an investor who buys shares because they believe the market is going to rise; whereas a “bear” will sell shares as they believe the market is going to turn negative.
True
False
