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Stock Market
Stock Market
21 terms
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StudBud Administration
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The basic terms related to decision making concerning stock purchases.
Flashcards
21 cards
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Questions
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Answers
1
What is a dividend?
A quarterly payout from the company per share of stock owned
A fee paid to the company each quarter
When a company divides its stocks.
2
Looking at a company's debt is important in the decision making process.
True
False
3
The 52 week range is
Is a strong predictor of company success
Indicates gross profit
The lowest & highest the price of the stock
4
The past 5 year growth can indicate...
company earnings
company profit.
company growth
5
Where can you look to find what the company sells or services it offers?
The Historical Chart
The Company Profile
The Comparison Chart
6
The 1 year stock estimate is
A Predication
An Opinion
A Fact
7
Which of the following is a strong indicator?
Comparing gross profits by quarter or year
Past and Future growth
Beta Number & P/E ratio
8
Market Cap tells you
How much debt the company has
How much the company is worth
How much the company has earned this quarter
9
Future 5 year growth can...
Guarantee how much the stock will increase
Indicate how much the market will grow in 5 years.
Predict how much the stock will grow in the next 5 years
10
A brokers fee is...
The fee paid to a financial adviser for transactions.
Is usually a percentage of the investment total
On all transactions
11
Which of the following best describes P/E ratio?
Indicates the stock is a poor buy
Comparison between 2 stocks, showing which is the best buy.
A number that indicates how risky the stock is.
12
Supply and Demand can be seen by looking at...
Volume of stock
stock price growth
52 week range
13
Gross Profit is a good indicator of a company's profit.
True
False
14
Indicate which is true of a mutual fund.
They are a loan to the gov't or business
You can own pieces of stocks that are 2 expensive to buy.
Usually less risk than individual stock purchases
15
The purpose of investing is...
To help pay for large expenses like college, etc
to make money fast
to increase wealth over a long period of time (decades)
16
Current events can affect the stock market
False
True
17
Diversification means...
Investment portfolio with various industries represented.
To invest money into one stock.
To divide stocks up when a company is sold
18
If a beta is 1.25 what would that tell you?
That the stock is above average risk.
The stock is no longer being traded.
The stock is below average risk.
19
The historic chart can indicate what...
It does not give significant information.
When the company started selling stocks
How volatile the stock has been over a period of time.
Can see trends in the market like a recession
20
As we get closer to Halloween is now a good time to invest in a candy company?
YES! A lot of people buy candy.
No, they are expecting the increased sales.
YES! They will be selling a lot of product.
21
A bond is...
High Risk of losing your investment
Is the least amount of risk, compared to stocks/mutual funds
Is a loan to the gov't or a buisness