The DJIA is an index of

30 major U.S. producers of goods and services

Businesses sell stock to the public primarily to

Obtain additional financial capital

What does SEC stand for?

Securities and Exchange Commission

A rising stock market in which investors are buying stock

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Chapter 8 quiz! Eco

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BJU Economics chapter 8: The Stock Market

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Questions 16

Answers

1
A dividend is based on the
DJIA
Company's profits
Company's PE ratio
Length of time the person owns the stock
2
Actively buying or selling stocks for the purpose of profiting from short-term changes in the prices is called
Speculation
Buying on margin
Selling short
Liquidation
3
The DJIA is an index of
500 stocks in many different types of businesses
30 major U.S. producers of goods and services
40 utility stocks in the United States
100 stocks from U.S. and foreign industries
4
The index that includes all the stocks on the NYSE is the
NASDAQ
NYSE Financial Index
NYSE Composite Index
S&P 500
5
Which stock exchange is entirely electronic with no face-to-face trading?
The AMEX
The Philedelphia Stock Exchange
The NASDAQ
The NYSE
6
Businesses sell stock to the public primarily to
Limit the owners' liability
Get more customers
Obtain additional financial capital
Gain more control of the market
7
What is an IPO?
International plant operators
Investment proof outline
Initial public offering
Initial public ownership
8
The price of a stock tends to reflect information and expectations about
Interest rates
The company's profitability
Consumer confidence
The comapany's product prices
9
A mutual fund is a set of investments assets owned and managed by an individual.
False
True
10
What does SEC stand for?
Stock Exchange Camp
Stock Expectation Committee
Securities and Exchange Commission
Stock Extrapolation Commission
11
The most prevalent type of stock
Standard stock
Normal stock
Preferred stock
Common stock
12
The stock market is
Pure Art
Enriching (literally)
Cool
Enlightening
13
The organization that helps a business issue stock to the public for the first time is a(an)
A commercial bank
A board of directors
An investment bank
A credit union
14
Which is the most well-known stock index
The NYSE composite index
The NASDAQ
The DJIA
The S&P 500
15
A Bull market is
A falling stock market in which investors are selling stocks
Stagnant market growth
A rising stock market in which investors are buying stock
A place to sell livestock
16
The most respected stock exchange in the world is the
AMEX
London Exchange
NYSE
NASDAQ

Chapter 8 quiz! Eco Flashcards | StudBud