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Equities 2

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

Which security is known as a hybrid security?

a)

Ordinary share

b)

Preference share

c)

Bond

2.

Non-diversification risk is a result of factors influencing the entire market, such as investment policy and tax policy.

a)

True

b)

False

3.

Investing in different companies and different sectors is under _____ strategy.

a)

creating stock portfolio

b)

investing over time

c)

dollar-cost averaging

d)

long-term investing horizon

4.

Equity dilution gives a disadvantage to the following parties, except

a)

investors

b)

shareholders

c)

managers

d)

Board of Directors

5.

Price/Earnings ratio is suitable to be used for companies that are under the category of

a)

Growth stocks

b)

Income stocks

6.

Stock price that is undervalued is when the intrinsic value is ____ than the market value.

a)

higher

b)

lower

7.

Stocks that are undervalued should be _____ by investors.

a)

bought

b)

sold

8.

Companies that have Beta of less than one are good choices during _____ market.

a)

good (bullish)

b)

bad (bearish)