Question 1

The annual dividend yield is calculated by dividing the annual dividend by the initial stock investment.

Accepted Answer

A) True 
 B)False

Question 2

A stock that sells for less than $l a share is called a

Accepted Answer

A)  fractional stock. 
B)  dollar stock. 
C)  penny stock. 
D)  ten-dollar stock. 
E)  bad investment. 
A)  fractional stock. 
B)  dollar stock. 
C)  penny stock. 
D)  ten-dollar stock. 
E)  bad investment.

Question 3

Enron's collapse has put thousands of innocent Americans out of work and wiped out the retirement portfolios of thousands more.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is not true?

Accepted Answer

A)  Most board members like to keep stockholders happy. 
B)  Few things will unite stockholders into a powerful opposition force more rapidly than omitted or lowered dividends. 
C)  Intelligent investors must be concerned about future after-tax profits. 
D)  If a cash dividend is declared by the board of directors,each stockholder by law receives an equal amount per share. 
E)  Corporate dividends are always paid in cash. 
A)  Most board members like to keep stockholders happy. 
B)  Few things will unite stockholders into a powerful opposition force more rapidly than omitted or lowered dividends. 
C)  Intelligent investors must be concerned about future after-tax profits. 
D)  If a cash dividend is declared by the board of directors,each stockholder by law receives an equal amount per share. 
E)  Corporate dividends are always paid in cash.

Question 5

To safeguard investments,stock owners who believe that the price of their stock will go down during an option period will purchase a

Accepted Answer

A)  futures contract. 
B)  short contract. 
C)  call option. 
D)  put option. 
E)  margin contract. 
A)  futures contract. 
B)  short contract. 
C)  call option. 
D)  put option. 
E)  margin contract.

Question 6

Last year,Hi-Lo Electronics earned $2.50 per share.If the current market value for a share of stock is $55,what is the firm's PE ratio?

Accepted Answer

A)  0.025 
B)  2.5 
C)  22 
D)  55 
E)  It is impossible to calculate a PE ratio with this information. 
A)  0.025 
B)  2.5 
C)  22 
D)  55 
E)  It is impossible to calculate a PE ratio with this information.

Question 7

Dividend payments on common stock are guaranteed,but the amount is determined by the board of directors.

Accepted Answer

A) True 
 B)False

Question 8

Daisy Diaz purchased 100 shares of Cameco Inc.at $40 dollars a share.The shares subsequently split three for one on December 31,2004 and currently trade at $50 a share.If Daisy sells all of her shares,what will be his capital gain?

Accepted Answer

A)  $11,000 
B)  $5,500 
C)  $4,000 
D)  $6,000 
E)  $6,500 
A)  $11,000 
B)  $5,500 
C)  $4,000 
D)  $6,000 
E)  $6,500

Question 9

Describe why corporations issue common stock.Describe why investors purchase common stock.

Accepted Answer

Corporations issue common stock for the

Question 10

A market for existing financial securities that are currently traded between investors 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 11

A stock that follows the business cycle of advances and declines 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 12

When the board of directors approves a two for one stock split,the price for each share of stock

Accepted Answer

A)  remains unchanged. 
B)  increases in value. 
C)  decreases in value. 
D)  is guaranteed to go up within a short period of time. 
E)  always drops to half of its former value. 
A)  remains unchanged. 
B)  increases in value. 
C)  decreases in value. 
D)  is guaranteed to go up within a short period of time. 
E)  always drops to half of its former value.

Question 13

A request that a stock be bought or sold at a specified 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 14

Jamie Presner purchased 100 shares of Bank of Montreal for $86.00 Jamie also paid $50 commission.What was the total purchase price for this transaction?

Accepted Answer

A)  $50.00 
B)  $86.00 
C)  $8,650.00 
D)  $8,289.50 
E)  $860.00 
A)  $50.00 
B)  $86.00 
C)  $8,650.00 
D)  $8,289.50 
E)  $860.00

Question 15

One hundred shares or a multiple of 100 shares is called a(n)____________ lot.

Accepted Answer

A)  market 
B)  limited 
C)  round 
D)  odd 
E)  executive 
A)  market 
B)  limited 
C)  round 
D)  odd 
E)  executive

Question 16

The record date is the date that the actual dividend payment is made to stockholders.

Accepted Answer

A) True 
 B)False

Question 17

Dividends are paid out of profits,and

Accepted Answer

A)  dividends are guaranteed. 
B)  dividend payments must be approved by the firm's board of directors. 
C)  dividends are paid before a firm's taxes are paid. 
D)  dividends are usually paid twice a year. 
E)  dividends are guaranteed and paid twice a year. 
A)  dividends are guaranteed. 
B)  dividend payments must be approved by the firm's board of directors. 
C)  dividends are paid before a firm's taxes are paid. 
D)  dividends are usually paid twice a year. 
E)  dividends are guaranteed and paid twice a year.

Question 18

When a corporation exchanges stock for a specified amount of money,it is exercising its ____________ feature.

Accepted Answer

A)  participating 
B)  cumulative 
C)  convertible 
D)  call 
E)  termination 
A)  participating 
B)  cumulative 
C)  convertible 
D)  call 
E)  termination

Question 19

A stock that pays higher than average dividends is called a(n)____________ stock.

Accepted Answer

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

Question 20

John Baker bought BCE stocks for $33 a share one year ago.He sold the stock a year later for $36.50 a share.What was John's capital gains yield?

Accepted Answer

A)  3 percent 
B)  3.50 percent 
C)  4 percent 
D)  9 percent 
E)  10.6 percent 
A)  3 percent 
B)  3.50 percent 
C)  4 percent 
D)  9 percent 
E)  10.6 percent

The annual dividend yield is calculated by dividing the annual dividend by the initial stock investment.

A stock that sells for less than $l a share is called a

Enron's collapse has put thousands of innocent Americans out of work and wiped out the retirement portfolios of thousands more.

Which of the following statements is not true?

To safeguard investments,stock owners who believe that the price of their stock will go down during an option period will purchase a

Last year,Hi-Lo Electronics earned $2.50 per share.If the current market value for a share of stock is $55,what is the firm's PE ratio?

Dividend payments on common stock are guaranteed,but the amount is determined by the board of directors.

Daisy Diaz purchased 100 shares of Cameco Inc.at $40 dollars a share.The shares subsequently split three for one on December 31,2004 and currently trade at $50 a share.If Daisy sells all of her shares,what will be his capital gain?

Describe why corporations issue common stock.Describe why investors purchase common stock.

A market for existing financial securities that are currently traded between investors is called the ____________ market.

A stock that follows the business cycle of advances and declines in the economy is called a(n)____________ stock.

When the board of directors approves a two for one stock split,the price for each share of stock

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

Jamie Presner purchased 100 shares of Bank of Montreal for $86.00 Jamie also paid $50 commission.What was the total purchase price for this transaction?

One hundred shares or a multiple of 100 shares is called a(n)____________ lot.

The record date is the date that the actual dividend payment is made to stockholders.

Dividends are paid out of profits,and

When a corporation exchanges stock for a specified amount of money,it is exercising its ____________ feature.

A stock that pays higher than average dividends is called a(n)____________ stock.

John Baker bought BCE stocks for $33 a share one year ago.He sold the stock a year later for $36.50 a share.What was John's capital gains yield?

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

The annual dividend yield is calculated by dividing the annual dividend by the initial stock investment.

A stock that sells for less than $l a share is called a

Enron's collapse has put thousands of innocent Americans out of work and wiped out the retirement portfolios of thousands more.

Which of the following statements is not true?

To safeguard investments,stock owners who believe that the price of their stock will go down during an option period will purchase a

Last year,Hi-Lo Electronics earned $2.50 per share.If the current market value for a share of stock is $55,what is the firm's PE ratio?

Dividend payments on common stock are guaranteed,but the amount is determined by the board of directors.

Daisy Diaz purchased 100 shares of Cameco Inc.at $40 dollars a share.The shares subsequently split three for one on December 31,2004 and currently trade at $50 a share.If Daisy sells all of her shares,what will be his capital gain?

Describe why corporations issue common stock.Describe why investors purchase common stock.

A market for existing financial securities that are currently traded between investors is called the ____________ market.

A stock that follows the business cycle of advances and declines in the economy is called a(n)____________ stock.

When the board of directors approves a two for one stock split,the price for each share of stock

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

Jamie Presner purchased 100 shares of Bank of Montreal for $86.00 Jamie also paid $50 commission.What was the total purchase price for this transaction?

One hundred shares or a multiple of 100 shares is called a(n)____________ lot.

The record date is the date that the actual dividend payment is made to stockholders.

Dividends are paid out of profits,and

When a corporation exchanges stock for a specified amount of money,it is exercising its ____________ feature.

A stock that pays higher than average dividends is called a(n)____________ stock.

John Baker bought BCE stocks for $33 a share one year ago.He sold the stock a year later for $36.50 a share.What was John's capital gains yield?

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