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Finance and Investment Basics Quiz

Total questions: 33

Worksheet time: 17mins

Name
Class
Date
1.

It is money paid by a company to its shareholders.

a)

Dividend

b)

Stock exchange

c)

Brokerage house

d)

Common stock

2.

It represents part ownership of a company.

a)

Share of stock

b)

Dividend yield

c)

Stockbrokers

d)

Dividend rate

3.

The total amount a company pays on one share of its stock for the entire year (annually).

a)

Dividend rate

b)

Preferred stock

c)

Shareholder

d)

Common stock

4.

A person is referred to this term when they own a share or shares of a company.

a)

Shareholder

b)

Broker

c)

Investor

d)

Trader

5.

It is licensed to buy and sell stocks and often has stockbrokers that assist clients in making stock trades.

a)

Stock Exchange

b)

Brokerage Firm

c)

Investment Bank

d)

Mutual Fund

6.

This type of stock gives you the right to vote at shareholders’ meetings and the right to receive dividends.

a)

Common Stock

b)

Preferred Stock

c)

Bond

d)

Mutual Fund

7.

Is the percentage money earned to the value of the stock.

a)

Dividend Yield

b)

Interest Rate

c)

Capital Gain

d)

Return on Investment

8.

Owners of this type of stock don’t get the right to vote but do receive dividends and have priority to dividends.

a)

Preferred Stock

b)

Common Stock

c)

Bond

d)

Mutual Fund

9.

Acts as a market where buyers and sellers connect.

a)

Stock Exchange

b)

Brokerage Firm

c)

Investment Bank

d)

Mutual Fund

10.

May give assistance to clients with stock trades or give stock advice.

a)

Stockbroker

b)

Financial Analyst

c)

Accountant

d)

Banker

11.

One “share of stock” represents

a)

how much profit you will earn.

b)

part ownership of a company.

c)

the actual value of the stock.

d)

All of the above.

12.

Which statement is true about common stock:

a)

Most companies issue common stock not preferred stock.

b)

Common stock gives you the right to vote at shareholders’ meetings.

c)

You have the right to receive dividends.

d)

All of the above.

13.

If a company pays a quarterly dividend of 25 cents, what would be the dividend rate?

a)

25 cents

b)

50 cents

c)

75 cents

d)

$1.00

14.

A company may need to issue stock in order to raise money to

a)

expand business.

b)

develop new products.

c)

lower debt.

d)

All of the above.

15.

Where is most stock bought and sold?

a)

by the company.

b)

by the government.

c)

in a stock market or exchange.

d)

All of the above.

16.

A stockbroker

a)

is the owner of the company.

b)

may provide clients advice on stocks and help them make trades.

c)

is not allowed to sell or buy stocks.

d)

None of the above.

17.

The price of a stock is determined by the

a)

actual value of the company.

b)

supply and demand for the stock.

c)

government.

d)

All of the above.

18.

Stock investors can profit from stocks from

a)

bankruptcy.

b)

dividends.

c)

growth.

d)

both dividends and growth.

19.

What was the opening price of Ford Motor Co. (F) on the given date?

a)

12.39

b)

12.20

c)

11.02

d)

15.84

20.

What is the P/E Ratio (ttm) for Ford Motor Co. (F)?

a)

5.80

b)

4.88

c)

12.39

d)

49.73

21.

What is the 52-week range for Ford Motor Co. (F)?

a)

11.02 - 15.84

b)

12.20 - 12.42

c)

12.39 - 12.39

d)

21,749,742 - 34,178,203

22.

What was the volume of shares traded for Ford Motor Co. (F)?

a)

21,749,742

b)

34,178,203

c)

49.73B

d)

0.60

23.

What were the highest and lowest price this stock traded for during the year and which months did each occur in?

a)

Highest: $100 in January, Lowest: $50 in June

b)

Highest: $150 in March, Lowest: $75 in September

c)

Highest: $200 in May, Lowest: $100 in December

d)

Highest: $250 in July, Lowest: $125 in November

24.

What is the dividend rate and the dividend yield for this stock?

a)

Rate: 2%, Yield: 3%

b)

Rate: 4%, Yield: 5%

c)

Rate: .60%, Yield: 4.88%

d)

Rate: 3%, Yield: 4%

25.

The more shares you own of a company, the more you own of the company.

a)

True

b)

False

26.

The lower the dividend yield, the better return for the shareholder.

a)

True

b)

False

27.

In most cases, in order to buy or sell stocks, you need to use a brokerage house.

a)

True

b)

False

28.

The advantage of a company selling common stock is that the company can raise money without going into debt.

a)

True

b)

False

29.

People’s emotion, information, and rumors have a powerful influence on moving the price of a stock.

a)

True

b)

False

30.

Money that is paid by a company to its shareholders.

a)

Shareholder

b)

Dividend

c)

Brokerage house

d)

Preferred stock

31.

When you own a share or shares of a company.

a)

Shareholder

b)

Dividend

c)

Brokerage house

d)

Preferred stock

32.

Is a type of stock in which you don’t get the right to vote but do receive dividends and have priority to dividends.

a)

Shareholder

b)

Dividend

c)

Brokerage house

d)

Preferred stock

33.

Is licensed to buy and sell stocks and often has stockbrokers that assist clients in making stock trades.

a)

Shareholder

b)

Dividend

c)

Brokerage house

d)

Preferred stock