What is the main reason for creating different types of stock?

Keep voting power with a certain group

Bull Market is best characterized as a...

Optimists dominate the market and prices go up

What best characterizes a bear market?

Pessimists dominate the market prices go down

Why is limited liability important?

Protects consumers from risks taken by the corporation

All of the following are true about shareholders except...

Receive company assets on a quarterly basis

Main purpose of the Stock Market

Ensure market efficiency and make money for investors

Stock Ownership is important because...

It makes you profits if all goes as planned

All are characteristics of Bonds except...

Are safer investments than stocks

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Questions 19

Answers

1
How would you best characterize a stock speculator?
Important to the market because they add value
Not concerned with the R&D or long term future
Dont understand or care about the stock
All of these look good
2
The most common uses of the stock market...
Profit & Loss
Customers and Workers
Speculation and Investing
Stocks & Sales
3
What is the main reason for creating different types of stock?
Ensure the smooth release of the company IPO
Ensure their friends get the best deal
Fit the needs of their investors
Keep voting power with a certain group
4
Bull Market is best characterized as a...
Optimists dominate the market and prices go up
Period in which prices trend lower
Period in which prices stagnate
Pessimists dominate the market and prices go up
5
What best characterizes a bear market?
Pessimists dominate the market prices go down
Period in which prices stagnate
Optimists dominate the market and prices go up
Bears become brokers and sell stock in honey
6
All are reasons to invest in stock EXCEPT...
Speculate its loss
Make Money
Growth and Expansion
New Business Idea
7
How would you best characterize an investor?
Interested in selling their stock at a loss
In it to make a quick buck
Interested in the process of the company
In it for the long haul
8
AAPL--What does this represent?
Company Logo for Apple
The future of the company
Stock Ticker Symbol
An Initial Public Offering
9
Why is limited liability important?
Protects consumers from risks taken by the corporation
Since liability is everywhere we need to limit its power
They have limits to there insurance liability
If the corp. files bankruptcy they can sue shareholders
10
All of the following are true about shareholders except...
Receive company assets on a quarterly basis
Cannot do what they please with the companies assessts
The right to vote at annual meetings
Owns shares issued by the corporation
11
Why do share prices change?
Because of Supply
Because of Supply and Demand
Because of the Business Model
Because of Demand
12
Main purpose of the Stock Market
To make as much money in bonuses as possible
It serves no purpose
Ensure market efficiency and make money for investors
To take public pensions
13
Price times the number of shares outstanding is called...
Supply side markets
Bonding Cap
Market Cap
Initial Public Offering
14
Stock Ownership is important because...
It is not important at all
It allows you to make decisions about the corporation
It makes you profits if all goes as planned
It makes the corporation valuable
15
The majority of stocks are called...
Preferred Stock
Bond Stock
Live Stock
Common Stock
16
All are characteristics of Bonds except...
Bondholders are creditors to the corporations
Are safer investments than stocks
Are debts for investors to buy
Entitled to interest and principal profits
17
Two types of exchanges
Wall Street and Main Street
Stocks and Bonds
Physical and Virtual
Fast and Slow
18
This stock usually comes with payment of dividends.
Preferred Stock
Common Stock
Bond Stock
Live Stock
19
Signifies ownership in a corporation.
Money
Share
Stock
Certificate

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