Question 1

To calculate the annual dividend yield,the annual dividend is divided by the stock's

Accepted Answer

A)  current price. 
B)  historical average price. 
C)  future price. 
D)  beginning-of-year price. 
E)  end-of-year price. 
A)  current price. 
B)  historical average price. 
C)  future price. 
D)  beginning-of-year price. 
E)  end-of-year price.

Question 2

Why would an investor favor a common share over a preferred share?

Accepted Answer

A)  To obtain a bigger potential capital gain. 
B)  To obtain repayment of the face value at maturity. 
C)  To obtain a fixed dividend. 
D)  To obtain a fixed coupon payment. 
E)  To obtain a variable dividend 
A)  To obtain a bigger potential capital gain. 
B)  To obtain repayment of the face value at maturity. 
C)  To obtain a fixed dividend. 
D)  To obtain a fixed coupon payment. 
E)  To obtain a variable dividend

Question 3

The price-earnings ratio is not affected by an increase or decrease in the firm's earnings.

Accepted Answer

A) True 
 B)False

Question 4

The type of stock that may earn more than the stated dividend if the firm has a good year is ____________ stock.

Accepted Answer

A)  common 
B)  convertible preferred 
C)  participating preferred 
D)  cumulative preferred 
E)  callable preferred 
A)  common 
B)  convertible preferred 
C)  participating preferred 
D)  cumulative preferred 
E)  callable preferred

Question 5

A market in which an investor purchases financial securities (via an investment bank or other representative from the issuer of those securities is called the ____________ market.

Accepted Answer

A)  technical 
B)  fundamental 
C)  efficient 
D)  secondary 
E)  primary 
A)  technical 
B)  fundamental 
C)  efficient 
D)  secondary 
E)  primary

Question 6

When investors purchase stock on margin,they borrow stock from a stockbroker or brokerage firm.

Accepted Answer

A) True 
 B)False

Question 7

A stock that pays higher than average dividends is called an income stock.

Accepted Answer

A) True 
 B)False

Question 8

Laws which are enforced by a federal regulatory body for the securities industry have been put in place to protect investors.

Accepted Answer

A) True 
 B)False

Question 9

You shouldn't be wary of any stocks that you learn about on financial bulletin boards,chat room,newsgroups or email.

Accepted Answer

A) True 
 B)False

Question 10

Oil-Slick Shipping stock was priced at $70 at the beginning of the year.Over the year the corporation paid a dividend of $3.25 and its stock price at year-end was $65.What is the trailing dividend yield?

Accepted Answer

A)  4.6 percent 
B)  4 percent 
C)  5 percent 
D)  5.4 percent 
E)  6 percent 
A)  4.6 percent 
B)  4 percent 
C)  5 percent 
D)  5.4 percent 
E)  6 percent

Question 11

By using the Canada.Com Finance Web site,an investor can find information on all of the following except

Accepted Answer

A)  inside information. 
B)  the corporation's stock symbol. 
C)  current market values. 
D)  research information. 
E)  historical market quotes. 
A)  inside information. 
B)  the corporation's stock symbol. 
C)  current market values. 
D)  research information. 
E)  historical market quotes.

Question 12

The price-earnings ratio is calculated by dividing the earnings per share of a stock by its fair market value.

Accepted Answer

A) True 
 B)False

Question 13

A cyclical stock is a stock that follows the business cycle of advances and declines in the economy.

Accepted Answer

A) True 
 B)False

Question 14

Marianne Walsh bought XYZ Corporation stocks for $26 a share at the beginning of 2001.At year-end,she received a dividend of $1.75 per share and then sold the stock for $30.50 a share.What was Marianne's annual shareholder return on the investment?

Accepted Answer

A)  6.25 percent 
B)  10.83 percent 
C)  17.31 percent 
D)  20.49 percent 
E)  24.04 percent 
A)  6.25 percent 
B)  10.83 percent 
C)  17.31 percent 
D)  20.49 percent 
E)  24.04 percent

Question 15

Which of these is not a sign for potential online investment scams?

Accepted Answer

A)  high pressure tactics to buy from people you do not know 
B)  promises of high profits and sales relating to products of a new company 
C)  large-cap companies that pay a generous executive salary 
D)  reverse splits 
E)  small-cap companies investing in projects unrelated to their businesses 
A)  high pressure tactics to buy from people you do not know 
B)  promises of high profits and sales relating to products of a new company 
C)  large-cap companies that pay a generous executive salary 
D)  reverse splits 
E)  small-cap companies investing in projects unrelated to their businesses

Question 16

A bear market develops when investors are optimistic about the overall economy and purchase stocks.

Accepted Answer

A) True 
 B)False

Question 17

Describe the steps involved in a typical margin transaction.

Accepted Answer

You may want to comp

Question 18

A large-cap stock is a stock issued by a company that has capitalization of $150 million or less.

Accepted Answer

A) True 
 B)False

Question 19

The annual shareholder return is the beginning-of-year stock price divided by the stocks annual dividend.

Accepted Answer

A) True 
 B)False

Question 20

Corporations issue preferred stock because it provides an alternative to financing through corporate bonds or common stock.

Accepted Answer

A) True 
 B)False

To calculate the annual dividend yield,the annual dividend is divided by the stock's

Why would an investor favor a common share over a preferred share?

The price-earnings ratio is not affected by an increase or decrease in the firm's earnings.

The type of stock that may earn more than the stated dividend if the firm has a good year is ____________ stock.

A market in which an investor purchases financial securities (via an investment bank or other representative from the issuer of those securities is called the ____________ market.

When investors purchase stock on margin,they borrow stock from a stockbroker or brokerage firm.

A stock that pays higher than average dividends is called an income stock.

Laws which are enforced by a federal regulatory body for the securities industry have been put in place to protect investors.

You shouldn't be wary of any stocks that you learn about on financial bulletin boards,chat room,newsgroups or email.

Oil-Slick Shipping stock was priced at $70 at the beginning of the year.Over the year the corporation paid a dividend of $3.25 and its stock price at year-end was $65.What is the trailing dividend yield?

By using the Canada.Com Finance Web site,an investor can find information on all of the following except

The price-earnings ratio is calculated by dividing the earnings per share of a stock by its fair market value.

A cyclical stock is a stock that follows the business cycle of advances and declines in the economy.

Marianne Walsh bought XYZ Corporation stocks for $26 a share at the beginning of 2001.At year-end,she received a dividend of $1.75 per share and then sold the stock for $30.50 a share.What was Marianne's annual shareholder return on the investment?

Which of these is not a sign for potential online investment scams?

A bear market develops when investors are optimistic about the overall economy and purchase stocks.

Describe the steps involved in a typical margin transaction.

A large-cap stock is a stock issued by a company that has capitalization of $150 million or less.

The annual shareholder return is the beginning-of-year stock price divided by the stocks annual dividend.

Corporations issue preferred stock because it provides an alternative to financing through corporate bonds or common stock.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

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Exam 11: Investing Basics and Evaluating Bonds

To calculate the annual dividend yield,the annual dividend is divided by the stock's

Why would an investor favor a common share over a preferred share?

The price-earnings ratio is not affected by an increase or decrease in the firm's earnings.

The type of stock that may earn more than the stated dividend if the firm has a good year is ____________ stock.

A market in which an investor purchases financial securities (via an investment bank or other representative from the issuer of those securities is called the ____________ market.

When investors purchase stock on margin,they borrow stock from a stockbroker or brokerage firm.

A stock that pays higher than average dividends is called an income stock.

Laws which are enforced by a federal regulatory body for the securities industry have been put in place to protect investors.

You shouldn't be wary of any stocks that you learn about on financial bulletin boards,chat room,newsgroups or email.

Oil-Slick Shipping stock was priced at $70 at the beginning of the year.Over the year the corporation paid a dividend of $3.25 and its stock price at year-end was $65.What is the trailing dividend yield?

By using the Canada.Com Finance Web site,an investor can find information on all of the following except

The price-earnings ratio is calculated by dividing the earnings per share of a stock by its fair market value.

A cyclical stock is a stock that follows the business cycle of advances and declines in the economy.

Marianne Walsh bought XYZ Corporation stocks for $26 a share at the beginning of 2001.At year-end,she received a dividend of $1.75 per share and then sold the stock for $30.50 a share.What was Marianne's annual shareholder return on the investment?

Which of these is not a sign for potential online investment scams?

A bear market develops when investors are optimistic about the overall economy and purchase stocks.

Describe the steps involved in a typical margin transaction.

A large-cap stock is a stock issued by a company that has capitalization of $150 million or less.

The annual shareholder return is the beginning-of-year stock price divided by the stocks annual dividend.

Corporations issue preferred stock because it provides an alternative to financing through corporate bonds or common stock.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Daily Spending Diary

Filters