WorksheetsPersonal Finance: Chapter 11 Test
Total questions: 20
Worksheet time: 10mins
Companies that have issued stock are required to pay dividends to stockholders.
True
False
Buying on margin is a conservative-low risk way to purchase stocks.
True
False
Calculate the net profit for the following trade AND determine whether it is a short-term or long-term gain: On February 10, 2024 bought 40 shares of Bitcoin Depot at $10 per share and sold on November 1, 2025 for $20 per share.
$400 as short-term gain
$800 as long-term gain
$400 as long-term gain
$800 as short-term gain
A stop order trade requests that a stockbroker ____.
buy a stock at the best possible price
sell a stock for a specific amount
decide when to sell a stock
buy or sell a stock at its current value
A few years ago, Nina purchased stock in several companies to add to her portfolio. Nina noticed that she began receiving higher-than-average dividends compared to her previous portfolio. It can be concluded that her current portfolio has a number of____ stocks.
growth
cyclical
penny
A_____ is a market condition that occurs when investors are optimistic about the economy and they buy stocks in greater demand.
stock market
over the counter market
bear market
A marketplace where brokers meet to buy and sell stock is called .
a primary market
ebay
a brokerage firm
The_____ of an investment is the annual dividend of an investment divided by the investment's current market value, expressed as a percentage.
capitalization
margin
total return
____ is the stock classification for those stocks issued by strong and respected companies that show leadership in an industry and a history of stable earnings.
preferred stock
income stock
growth stock
_____ gives a stockholder an idea of a company's profitability for EACH share.
Current yield
Price-earnings ratio
Projected earnings
A network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange.
Over the Counter Market
Primary Market
Capital Market
New York Market
William has been watching the stock market for the last 5 years. He feels that investors have lost confidence in the economy and that stock prices will continue to decline. He claims that the stock market is currently a market.
bull
raging
recession
What is the formula for calculating the total return on the stock?
net earnings/common stock outstanding
dividend x number of shares x years held
current return + capital gain
annual dividend/ current market value
A request to buy or sell a stock at the current market value
Market Order
Income Stock
Stop Order
Penny Stock
A trade request to sell a stock at a specified price
Penny Stock
Market Order
Stop Order
Income stock
Pays higher-than-average dividends compared to other stock issues
Market Order
Stop Order
Income Stock
Penny Stock
Types of stocks that are issues by new companies and companies that are very unsteady
Market Order
Stop Order
Penny Stock
Income Stock
According to the content delivered in this chapter, long term strategies offer the investor a benefit such as:
quick returns on day trading
quick returns on penny stocks
higher chance of overall gains in the future
overall decrease in stock price
Brayden, a risky investor, would be attracted to all of the following investments EXCEPT:
Shorts Sales
Penny Stocks
Small-Cap Stocks
Blue-Chip Stocks
Stock purchased in January 2025 and then sold in February 2026 is considered a Long-Term Gain.
True
False
