WorksheetsStock Market Review
Total questions: 20
Worksheet time: 10mins
The return on an investment is the amount of money the investment earns, or the
Profit
Yield
Revenue
Interest
A company's market capitalization (size) is calculated by which formula?
Stock price divided by earnings per share
Stock price multiplied by the number of shares outstanding
The number of shares outstanding divided by the stock price
Stock price multiplied by the number of outstanding debt
What happens to shareholders if a company goes bankrupt?
Shareholders receive a portion of the company's assets.
Shareholders lose their entire investment in the company.
Shareholders are compensated by the government.
Shareholders gain additional shares in a new company.
Dividend is
A stockholder’s portion of the company's profits
A type of tax on corporate earnings
A method of calculating interest rates
A financial instrument used for trading
What is the most important factor that affects the value of a company?
Cash flow
Earnings
Supply and demand
Dividends
Stocks are categorized by each of the following EXCEPT: Size, Style, Solvency, Sector
Size
Style
Solvency
Sector
What do the bear and the bull stand for?
The bear means stocks are going up and the bull means stocks are falling.
The bear means stocks are stable and the bull means stocks are volatile.
The bear means stocks are falling and the bull means stocks are going up.
The bear means stocks are undervalued and the bull means stocks are overvalued.
Corporations must issue this type of stock
Preferred
Common
Convertible
Restricted
As a shareholder you are entitled to all of the following except:
Ability to make day to day business decisions
A copy of the company's prospectus
Voting rights
Possible dividends
What is an IPO?
A type of bond issued by corporations
An initial public offering - when a corporation first sells stock to the public
A private sale of company shares
A government grant for startups
If someone is considered to be bearish, where do they think the stock market is heading?
Higher
Lower
Sideways
Unpredictable
There are two basic types of stock, common stock and
Preferred Stock
Convertible Stock
Growth Stock
Value Stock
Stock that gives the advantage of receiving cash dividends before common stockholders is called
Common stock
Preferred stock
Convertible stock
Growth stock
Which type of stock pays a fixed dividend but has no voting rights?
Common Stock
Stock Option
Preferred Stock
Bonds
A profit made from the sale of a stock is called a (n)
Capital gain
Dividend
Interest income
Stock split
What is a stock market?
A place where stocks are publicly bought and sold
A type of investment that guarantees returns
A government agency that regulates financial institutions
A marketplace for trading commodities like oil and gold
All of these are stock markets except? AMEX, NYSE, NASDAQ
BIBR
LSE
TSE
SSE
A _________ stock is issued by solid and reliable companies with long records of growth and stability.
penny
growth
blue chip
value
Stocks that include utilities, consumer staples, pharmaceuticals, and insurance companies
Growth Stock
Defensive Stock
Cyclical Stock
Value Stock
Which is a totally electronic stock market?
NYSE
NASDAQ
AMEX
LSE
