Worksheets5.04 Financial Planning 1
Total questions: 10
Worksheet time: 8mins
Regarding stock investments, which of the following primarily drives investors’ actions:
Performance
Expectations
Recommendations
Information
How does a bull market affect a stock’s price?
By encouraging product purchases
By discouraging product purchases
By promoting well-performing funds
By avoiding investment scams
How much a stock sells for depends directly on which of the following:
How volatile the stock is
The popularity of the company’s new product
How high the company’s earnings are
What buyers are willing to pay for the stock
What is the difference between a stock’s ask price and buy price?
The ask price and buy price are usually equal.
The ask price is usually higher than the buy price.
The ask price is the sell price, while the buy price is the bid price.
The buy price is the sell price, while the ask price is the bid price.
Stocks whose prices rise higher than, or fall lower than, the market as a whole are referred to as
efficient.
influential.
volatile.
successful.
Which of the following is a company-specific influence on a stock’s price:
Investor action
Government action
Change in supply or demand
Change in management
What happens when institutional investors purchase a number of stocks from the same company?
Individuals purchase stocks from the company.
Analysts recommend that investors sell their stocks from the company.
The company introduces a new business model.
The company introduces a new product.
Which of the following is not likely to cause a stock’s price to fluctuate:
A well-known analyst’s recommendation to buy
Addition to individual investor’s portfolio
A fund manager’s sale of stock
Removal from the S&P 500
In what way can the general state of the economy affect a stock’s price?
By increasing supply or demand
By making investment information available to the general public
By bringing together a balanced portfolio
By filtering out poor investments
Which of the following is a cyclical stock:
Southwest Water Co. (SWWC)
Triad Hospitals Inc. (TRI)
US Concrete (RMIX)
Colgate-Palmolive Co. (CL)
