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Stock Market Review
Stock Market Review
30 terms
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StudBud Administration
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490 plays
Second Semester Review after participating in the Stock Market Game.
Flashcards
30 cards
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Practice quiz
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Host live
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Questions
30
Answers
1
You purchased 10 shares of ABC stock and earned a 10% return the first year. The second year,
you have no idea what will happen
you'd have 20 shares
you continue to earn 10%
you earn 20%
2
Owning a stock comes with rights and responsibilities.
False
What?
True
3
Buying and selling stocks on the New York Stock Exchange can best be compared to
football
an auction
a flea market
a grocery store
4
When you invest in a bond, you are
owning a government business
loaning money to a company
James thanks you
borrowing money for stock purchases
5
P/E means
profit/earnings
price to earnings ratio
Public Earnings
put in envelope
6
Compounding is
choosing several different stocks
fracturing your wallet
earning interest on interest
buying the same stock in the same amount over time
7
A company, like the Procter and Gamble company, may have products called
mutual funds
revenue
brands
shares
8
Shareholders in a for-profit corporation are liable for the debts of the corporation.
False
No clue
True
9
Why are investments riskier than savings?
it is not your money
companies don't care about you
nobody cares
there are more unknowns
10
When a company makes a profit, it is required to make dividend payments to shareholders.
False
True
Or else
11
Generally, the ____ risk you take, the _____ the possible return on your investments.
more, less
greater, greater
less, greater
less, less
12
When reading a stock quote, EPS is
profit or earnings divided equally among all shares
the extra profitable sale of stock
Excellent Purchase of Stock
Earnings Purchase Stock
13
All publicly-held corporations pay dividends to shareholders from their profits
Huh?
False
True
14
You buy 100 shares of ABC stock for $20/share. You sell at $12/share.
You lost $80
You gained $800
You gained $8
You lost $800
15
The board of Directors of ABC Co. voted to share profits with shareholders. They issue
dividends
magazines
bonuses
bonds
16
Orange Company's earning are the same as its revenue.
False
True
Biscuits
17
A public company sells its shares to the Securities and Exchange Commission.
True
False
What?
18
Investing means
keeping your money safe
putting your money to work earning more money
saving your money
buying stocks
19
Owners of this can vote for the board of directors and on issues at annual meetings.
staples
dividends
common stock
preferred stock
20
When Jan buys shares of BarNone Candy stock, she becomes
a lender
an entrepreneur
a superhero
a partial owner of the company
21
Share prices change because of
company profits
the NYSE
supply and demand
the ticker tape
22
Mutual Funds are
professionally managed
more risky than a stock
always mutually beneficial
borrowed money
23
Dividends are paid to shareholders from
part of the company's earnings
debt
contributions from company employees
the company's pension plan
24
These are issued by corporations and by governments to raise funds.
earnings
candy bars
bonds
stocks
25
You make money in the stock market by
selling stocks for more than you paid for them
receiving dividends
all answers are correct
taking risks
26
You may purchase stock in your favorite brands.
True
False
Nike
27
The three major US stock exchanges are
New York Stock Exchange, NASDAQ
New York Stock Exchange, Wall Street Stock Exchange, NASDAQ
Wall Street, FCLA, AND Short Change Exchange
United Excahnge, American Stock Exchange, and WSE
28
Shareholders invest their money in a
lemonade stand
partnership
for-profit corporation
proprietorship
29
A stock market trend means
the general direction of a market
you make money
everybody buys it
you lose money
30
When reading a stock quote, the Ask is
an offer made to buy the stock
the price at which a seller wants to sell the stock
the median target price
a question about the stock