stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Stock Market Overview Flashcards | StudBud
Explore
/
Stock Market Overview
Stock Market Overview
32 terms
·
StudBud Administration
·
750 plays
Intro to the Stock Market
Flashcards
32 cards
F
Practice quiz
P
Host live
L
Questions
32
Answers
1
Share prices change because of
supply and demand
company profits
changes in management
2
All publicly-held corporations pay dividends to shareholders from their profits
Huh?
True
False
3
P/E means
profit/earnings
price to earnings ratio
put in envelope
Public Earnings
4
When a company makes a profit, it is required to make dividend payments to shareholders.
Or else
True
False
5
The board of Directors of ABC Co. voted to share profits with shareholders. They issue
bonuses
bonds
dividends
magazines
6
Generally, the ____ risk you take, the _____ the possible return on your investments.
greater, greater
less, less
less, greater
more, less
7
Investing means
keeping your money safe
buying stocks
putting your money to work earning more money
saving your money
8
Owners of this can vote for the board of directors and on issues at annual meetings.
common stock
staples
preferred stock
dividends
9
You buy 100 shares of ABC stock for $20/share. You sell at $12/share.
You gained $8
You lost $80
You gained $800
You lost $800
10
A corporation must be publically traded for you and I to be able to invest in it.
True
False
11
Dividends are paid to shareholders from
part of the company's earnings
debt
contributions from company employees
the company's pension plan
12
Buying and selling stocks on the New York Stock Exchange can best be compared to
football
a flea market
an auction
a grocery store
13
When reading a stock quote, EPS is
the extra profitable sale of stock
Earnings Purchase Stock
profit or earnings divided equally among all shares
Excellent Purchase of Stock
14
Stock is part ownership in a corporation.
True
False
15
Why are investments riskier than savings?
nobody cares
companies don't care about you
there are more unknowns
it is not your money
16
Compounding is
earning interest on interest
fracturing your wallet
choosing several different stocks
buying the same stock in the same amount over time
17
Shareholders in a corporation are liable for the debts of the corporation.
True
False
No clue
18
A stock market trend means
everybody buys it
you lose money
you make money
the general direction of a market
19
When you invest in a bond, you are
owning a government business
borrowing money for stock purchases
James thanks you
loaning money to a company
20
A company, like the Proctor and Gamble company, may have products called
mutual funds
revenue
brands
shares
21
A company's ticker symbol is the abbreviation is is known as in the market.
True
False
22
A public company sells its shares to the Securities and Exchange Commission.
What?
False
True
23
Mutual Funds are
always mutually beneficial
professionally managed
borrowed money
more risky than a stock
24
Shareholders invest their money in a
lemonade stand
proprietorship
corporation
partnership
25
When Jan buys shares of BarNone Candy stock, she becomes
a partial owner of the company
a superhero
a lender
an entrepreneur
26
You purchased 10 shares of ABC stock and earned a 10% return the first year. The second year,
you earn 20%
you have no idea what will happen
you'd have 20 shares
you continue to earn 10%
27
These are issued by corporations and by governments to raise funds.
bonds
stocks
candy bars
earnings
28
You may purchase stock in your favorite brands.
Nike
True
False
29
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
30
Owning a stock comes with rights and responsibilities.
True
What?
False
31
The two major US stock exchanges are
New York Stock Exchange, NASDAQ
Wall Street, FCLA, AND Short Change Exchange
New York Stock Exchange, Wall Street Stock Exchange, NASDAQ
United Excahnge, American Stock Exchange, and WSE
32
A company's earnings are the same as its revenue.
Biscuits
False
True