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Securities and Investments Game: Ch. 8 - The Bottom Line Flashcards | StudBud
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Securities and Investments Game: Ch. 8 - The Bottom Line
Securities and Investments Game: Ch. 8 - The Bottom Line
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Questions
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Answers
1
Which of the following is NOT a question you want to ask yourself when studying a stock?
Do I really need to know what the company does?
Is the stock in the buy zone?
Are there signs of quality management?
Is the company growth rate acceptable?
2
The Estimated Annual Total Return over the next 5 years is the:
Average Annual Price Gain - Average Annual Dividend Yield
Average Total Return + Average Percent of Payout
Present Yield + Past Yield
Average Annual Price Gain + Average Annual Dividend Yield
3
As earnings per share grow, dividends will _______________.
Decrease
Stay the same
Increase
4
Price appreciation and dividend yield are:
Ways you lose money from investments
Things guaranteed with every investment.
The two basic ways to make money from investments
None of the above
5
Cautious investors mostly prefer stocks where some of the total annual return is from dividends
True
False
6
Present yield equals what divided by what times 100?
Most recent quarterly dividend/4
Present price of stock/present full year's dividend
Preset full year's dividend/present price of stock
7
Price appreciation is the amount of money received from dividends.
False
True
8
Companies who don't do well in their industry usually make good investments.
False
True
9
The average annual price appreciation is calculated by:
5/5-year appreciation potential
10 year appreciation potential/5
5 year appreciation potential/5
5/10 year appreciation potential
10
The Stock Selection Guide (SSG) is:
None of the above
An absolute rulebook for investing
Not worth paying attention to
A guide that can help you make decisions
11
The present yield tells you
Your total return
Your total loss
Your return from appreciation
Your annual return from dividend income
12
Present full year dividend equals what?
Last year's dividend times 4
Last 2 quarterly dividend times 2
Most recent quarterly dividend times 4
13
What size of company usually pay dividends?
Medium
Small
Large
14
It is important to keep which of the following in mind when investing?
Your goals
Your tolerance for risk
All of the Above
Your ability to understand what the company does
15
When choosing a stock to study, it is NOT important to study the industry it is in.
True
False
16
On the Stock Selection Guide (SSG) you consider the past history of the stock.
True
False
17
Which of the following is NOT a type of dividend a company pays?
20 year dividend
Quarterly Dividend
Annual Dividend
18
Stocks that pay a dividend tend to have MORE volatility in their prices.
True
False
19
Annual Total Return = Price Appreciation + Dividend Yield
True
False
20
Which company is the ONLY stock of the original 12 in the 1896 Dow Jones Industrial Average?
Standard Oil
Farmer's Insurance
Lowe's
General Electric
