Question 1

Today,it is possible for investors to access a corporation's home page in order to evaluate an investment in its stock.

Accepted Answer

A) True 
 B)False

Question 2

A stock split is a procedure in which a stockholder's common stock is exchanged for preferred stock.

Accepted Answer

A) True 
 B)False

Question 3

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)____________ stock.

Accepted Answer

A)  defensive 
B)  cyclical 
C)  growth 
D)  income 
E)  blue-chip 
A)  defensive 
B)  cyclical 
C)  growth 
D)  income 
E)  blue-chip

Question 4

The investment bank's commission or spread:

Accepted Answer

A)  depends on the quality of the issuing corporation 
B)  depends on the financial health of the issuing corporation 
C)  reflects the transfer of risk of raising funds to the investment bank 
D)  A and B are correct 
E)  A,B and C are correct 
A)  depends on the quality of the issuing corporation 
B)  depends on the financial health of the issuing corporation 
C)  reflects the transfer of risk of raising funds to the investment bank 
D)  A and B are correct 
E)  A,B and C are correct

Question 5

What is an option? What is the difference between a call and put option?

Accepted Answer

An option is the right to buy or sell st

Question 6

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

Accepted Answer

A) True 
 B)False

Question 7

Assume that you purchased 50 shares of Home Depot stock for $35 a share,that you received an annual dividend of $0.30 a share,and that you sold your Home Depot stock for $40 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question.)

Accepted Answer

A)  10.00 percent 
B)  12.50 percent 
C)  13.25 percent 
D)  14.29 percent 
E)  15.14 percent 
A)  10.00 percent 
B)  12.50 percent 
C)  13.25 percent 
D)  14.29 percent 
E)  15.14 percent

Question 8

A small cap stock is a stock that typically sells for less than 1$ per share.

Accepted Answer

A) True 
 B)False

Question 9

A very safe investment that generally attracts conservative investors is called a(n)____________ stock.

Accepted Answer

A)  penny 
B)  cyclical 
C)  growth 
D)  income 
E)  blue-chip 
A)  penny 
B)  cyclical 
C)  growth 
D)  income 
E)  blue-chip

Question 10

The most important priority that an investor in common stock enjoys is receiving cash dividends before preferred stockholders are paid any cash dividends.

Accepted Answer

A) True 
 B)False

Question 11

A request that a stock be bought or sold at the current market price is called a ____________ order.

Accepted Answer

A)  market 
B)  limit 
C)  stop 
D)  round 
E)  discretionary 
A)  market 
B)  limit 
C)  stop 
D)  round 
E)  discretionary

Question 12

Most speculators use a buy and hold technique.

Accepted Answer

A) True 
 B)False

Question 13

A corporation whose stock is owned by relatively few people and is not traded openly in stock markets is called a(n)____________ corporation.

Accepted Answer

A)  private 
B)  public 
C)  equity 
D)  debt 
E)  preferred 
A)  private 
B)  public 
C)  equity 
D)  debt 
E)  preferred

Question 14

Because Nortel is a ____________ corporation,Emily Codel can purchase stock with the help of an account executive through the secondary market.

Accepted Answer

A)  private 
B)  public 
C)  general 
D)  institutional 
E)  securities 
A)  private 
B)  public 
C)  general 
D)  institutional 
E)  securities

Question 15

Which of the following is a high-risk,short-term stock investing technique? I.Purchasing on margin
II)Dollar cost averaging
III)Hedging with options

Accepted Answer

A)  I only 
B)  II only 
C)  III only 
D)  I,II and III are correct 
E)  I and II are correct 
A)  I only 
B)  II only 
C)  III only 
D)  I,II and III are correct 
E)  I and II are correct

Question 16

Convertible preferred stock may be exchanged,at the corporation's option,for a specified number of shares of common stock.

Accepted Answer

A) True 
 B)False

Question 17

A securities exchange is a marketplace where member brokers who are representing investors meet to buy and sell securities.

Accepted Answer

A) True 
 B)False

Question 18

The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a(n)

Accepted Answer

A)  annual report. 
B)  quarterly report. 
C)  accountant's audit report. 
D)  prospectus. 
E)  stock guide. 
A)  annual report. 
B)  quarterly report. 
C)  accountant's audit report. 
D)  prospectus. 
E)  stock guide.

Question 19

A blue-chip stock is too speculative for most investors.

Accepted Answer

A) True 
 B)False

Question 20

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ stock.

Accepted Answer

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

Today,it is possible for investors to access a corporation's home page in order to evaluate an investment in its stock.

A stock split is a procedure in which a stockholder's common stock is exchanged for preferred stock.

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)____________ stock.

The investment bank's commission or spread:

What is an option? What is the difference between a call and put option?

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

Assume that you purchased 50 shares of Home Depot stock for $35 a share,that you received an annual dividend of $0.30 a share,and that you sold your Home Depot stock for $40 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question.)

A small cap stock is a stock that typically sells for less than 1$ per share.

A very safe investment that generally attracts conservative investors is called a(n)____________ stock.

The most important priority that an investor in common stock enjoys is receiving cash dividends before preferred stockholders are paid any cash dividends.

A request that a stock be bought or sold at the current market price is called a ____________ order.

Most speculators use a buy and hold technique.

A corporation whose stock is owned by relatively few people and is not traded openly in stock markets is called a(n)____________ corporation.

Because Nortel is a ____________ corporation,Emily Codel can purchase stock with the help of an account executive through the secondary market.

Which of the following is a high-risk,short-term stock investing technique? I.Purchasing on margin II)Dollar cost averaging III)Hedging with options

Convertible preferred stock may be exchanged,at the corporation's option,for a specified number of shares of common stock.

A securities exchange is a marketplace where member brokers who are representing investors meet to buy and sell securities.

The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a(n)

A blue-chip stock is too speculative for most investors.

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ 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

Exam 11: Investing Basics and Evaluating Bonds

Today,it is possible for investors to access a corporation's home page in order to evaluate an investment in its stock.

A stock split is a procedure in which a stockholder's common stock is exchanged for preferred stock.

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)____________ stock.

The investment bank's commission or spread:

What is an option? What is the difference between a call and put option?

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

Assume that you purchased 50 shares of Home Depot stock for $35 a share,that you received an annual dividend of $0.30 a share,and that you sold your Home Depot stock for $40 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question.)

A small cap stock is a stock that typically sells for less than 1$ per share.

A very safe investment that generally attracts conservative investors is called a(n)____________ stock.

The most important priority that an investor in common stock enjoys is receiving cash dividends before preferred stockholders are paid any cash dividends.

A request that a stock be bought or sold at the current market price is called a ____________ order.

Most speculators use a buy and hold technique.

A corporation whose stock is owned by relatively few people and is not traded openly in stock markets is called a(n)____________ corporation.

Because Nortel is a ____________ corporation,Emily Codel can purchase stock with the help of an account executive through the secondary market.

Which of the following is a high-risk,short-term stock investing technique? I.Purchasing on margin II)Dollar cost averaging III)Hedging with options

Convertible preferred stock may be exchanged,at the corporation's option,for a specified number of shares of common stock.

A securities exchange is a marketplace where member brokers who are representing investors meet to buy and sell securities.

The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a(n)

A blue-chip stock is too speculative for most investors.

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ 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