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WorksheetsChapter 9 Review
Total questions: 26
Worksheet time: 31mins
The amount of money you invest is called A. growth. B. principal. C. coupon rate. D. dividends
a
b
c
d
A piece of the ownership of a company is called a(n) A. principal. B. dividend. C. stock. D. bond.
a
b
c
d
A corporation that does not sell its stock to the general public is called a(n) A. partnership. B. public company. C. privately held company. D. None of the above.
a
b
c
d
Ups and downs in the stock market are known as A. fluctuations. B. investments. C. recessions. D. expansions.
a
b
c
d
Upward trends in the stock market are called A. fluctuations. B. investments. C. recessions. D. expansions
a
b
c
d
When companies share profits with stockholders, this is called A. dividends. B. growth. C. a stock split. D. a blue chip stock
a
b
c
d
Spreading out risk in your investments is called A. fluctuation. B. investment. C. dollar-cost averaging. D. diversification.
a
b
c
d
If you lend money to a company in exchange for receiving interest, you are buying A. stocks. B. bonds. C. real estate. D. portfolios.
a
b
c
d
Bonds sold by cities or towns are called A. U.S. savings bonds. B. municipal bonds. C. corporate bonds. D. coupon bonds.
a
b
c
d
Regularly buying investments with a set amount of money each month without regard to the price at the time is called A. Buying common stock. B. buying bonds. C. diversification. D. dollar-cost averaging
a
b
c
d
Investing .
(a) money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.
Preferred stock is a different type of equity that represents (a) of a company and the right to claim income from the company's operations.
Recession a period of temporary economic (a) during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters
Bull Market a market in which share prices are (a) , encouraging buying.
Bear Market A time when stock prices are (a) and market sentiment is pessimistic.
Stock
Split when a company (a) the number of its outstanding shares to boost the stock's liquidity.
Mutual
funds
an investment program funded by (a) that trades in diversified holdings and is professionally managed
Investment Portfolio a collection of financial (a) like stocks, bonds, commodities, cash, and cash equivalents, as well as their fund counterparts
If your average rate of return is 9%, how many years will it take you to double your investment?
4.3
12
3
8.04
You purchase 50 shares of stock in GWP, Inc. for $38.90 each. Your stock’s rate of return varies each year over the five years that you keep the stock, as shown in the table below. How much profit will you earn if you sell after five years? What is the average rate of return? Show all of your work below.
Company Y issues dividends quarterly. For the current year, each share of stock earned $.35 each quarter. What are your total dividends for the year if you own 375 shares of Company Y? Show all of your work below.
You purchase 165 shares of Alpha Company stock at $49.50 per share. The company decides to have a two-for-one stock split. How many shares will you have after the split and how much are they worth? Has the total value of your stock changed?
You purchase 45 corporate bonds from Baltic Manufacturing at $235 each. You will earn 4.35% interest on your bonds each year until they mature in 10 years. At that time, you will be repaid the amount you invested. How much will you earn over the 10 years? If your income tax rate is 25%, what are your net earnings on the bonds? Show all of your work below.
You purchase 25 municipal bonds issued by your county to build a park at $145 each. You will earn 4.9% interest on your bonds each year for 15 years. At that time, you will receive your loan repayment. How much will you earn on your bonds? Remember, you will not pay income tax on municipal bonds. Show all of your work below
