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WorksheetsInvestment and Portfolio Management Midterm Examination
Total questions: 16
Worksheet time: 7mins
Common stock riskier than debt or preferred shares.
Yes
No
When was the first common stock was estbalished?
1633
1603
1623
1602
IPO stands for...
(a)
These are companies that tend to increase in value due to growing earnings.
Growth stocks
Value stocks
Common stock
Preferred stock
Investors should not diversify their portfolio by putting money into different securities based on their appetite for risk.
True
False
It comes with no voting rights.
Common Stock
Debenture
Preferred Stock
None of the above
The way earnings power is measured may also depend on the type of company being analyzed.
True
False
What determines the discount rate?
(a)
It is a huge driver from a technical perspective as well
Substitutes
Inflation
Economic Driver
Deflation
It refers to the psychology of market participants, individually and collectively.
(a)
It refers to how much interest from investors a specific stock attracts.
Liquidity
Trend
Demographic
Substitutes
They are last in line when it comes to company assets
Investors
Common stockholders
Preferred stockholders
Stocholders
Value stocks are companies lower in price in relation to their fundamentals.
True
False
Why stocks should be considered an important part of any investor’s portfolio?
This form of equity ownership typically yields higher rates of return in long term.
Preferred Stock
Common Stock
Stock Shares
None of the above
What's the difference between preferred stock and common stock? Give three.
