A share of Stock is a:

type of security that signifies partial ownership in a company

What causes the prices of stocks to increase and decrease in value

New information, investor speculation, and supply and demand

What is the disadvantage of using debt financing to fund capital expenditures?

It requires the business to pay the money back with interest

The downside of using equity (going public) is

company gives up control, publicizes financials, & answers to a board

market of a group of securities in which prices are rising

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Financial Markets Quiz

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Questions 15

Answers

1
The NASDAQ is:
A Bear Market Fund
First electronic stock market including Google and Microsoft
Nonsense Association of District Annual Quotas
A Fast Food Fund
2
What are 2 ways businesses can raise capital dollars
Increasing assets and selling off liabilities
Debt and equity financing
Changing the internal financial structure and business model
Increasing revenue and borrowing money
3
A fund that uses money from a pool of investors
Mutual Fund
Large Cap Fund
Mid Cap Fund
Index Fund
4
A Bear Market is:
market of a group of securities in which prices are rising
A challenging camping environment
market condition in which security prices are falling
market with limited competition
5
What is "principal"
Money invested or borrowed before any interest is paid or earned
Interest earned or paid before purchase was made
The amount of the loan or investment that is risked
Money earned or paid in interest on a loan or investment
6
This is the world's largest stock exchange
US Corporate Exchange
NASDAQ
New York Stock Exchange
S&P 500
7
A share of Stock is a:
statement of assests
liquid used to make soup
revenue sharing option
type of security that signifies partial ownership in a company
8
What causes the prices of stocks to increase and decrease in value
New information, investor speculation, and supply and demand
Investor speculation, political policy changes, and new information
New information, consumer speculation, and political policy changes
Debt to equity ratios, new information, and CEO certifications
9
This is a risk management technique that mixes a wide variety of investments
Diversification
NASDAQ
Risk Mitigation
Mutual Fund
10
This is when a company pays a portion of profits to stock holders
Stock Options
Cyrptocurrency
Retained Earnings
Dividends
11
Principal guaranteed investments are considered to be high risk, therefore they earn less interest.
False
True
12
What is the disadvantage of using debt financing to fund capital expenditures?
If chosen it limits the company's ability to have an IPO in the future
Company gives up ownership, publicize financials, & answers to a board
It requires the business to pay the money back with interest
It could be viewed as a desperate measure by investors
13
The downside of using equity (going public) is
has to pay dividends, pays interest to the CEO, and publisixes financials
is not required to publicize financial
company gives up control, publicizes financials, & answers to a board
has to pay the money back with interest, and has to answer to a board
14
A Bull Market is:
market condition in which security prices are falling
market made up of monopolies
market of a group of securities in which prices are rising
market with limited competition
15
All publicly traded organizations are required to pay dividends
True
False

Financial Markets Quiz Flashcards | StudBud