MM Investing: Evaluating Stocks (Sp 17 - 11.2)

Question 1

There are only three investment theories.

Accepted Answer

False

Question 2

A small electronics company decides to go public, which category would their stock be placed?

Accepted Answer

Penny

Question 3

Theory that believes a stocks price movement is purely random.

Accepted Answer

Efficient Market Theory

Question 4

Stock issued by the strongest and most respected companies.

Accepted Answer

Blue-chip

Question 5

Theory based on the idea that a stock's value is determined by forces in the market itself.

Accepted Answer

Technical Theory

Question 6

How many companies are represented in the Dow Jones Industrial Average?

Accepted Answer

30

Question 7

How do you know how much you have made from your stock investment?

Accepted Answer

Total Return

Question 8

Stock that remains stable during declines in the economy.

Accepted Answer

Defensive

Question 9

Which stock will react the most to changes in the stock market (volatile)?

Accepted Answer

Beta at 1.75

Question 10

Which stock type is typically issued by utility companies?

Accepted Answer

Income Stock

Question 11

What is not an activity that growth stock companies may engage in?

Accepted Answer

Issuing Dividends

Question 12

The net earnings of a corporation divided by the number of outstanding shares of stock.

Accepted Answer

Earnings Per Share

Question 13

Which of the following would not be a characteristic of a blue-chip stock company?

Accepted Answer

New Company with High Sales

Question 14

A market condition that occurs when investors are optimistic about the economy.

Accepted Answer

Bull

Question 15

Which of these would most likely be a defensive stock investment?

Accepted Answer

Wal-mart (WMT)

Question 16

Stock issued by a corporation whose potential earnings are higher than average earnings of most

Accepted Answer

Growth

Question 17

What is the term used to describe the total value for a company on the market?

Accepted Answer

Market Cap

Question 18

What the company is expected to make over the next term.

Accepted Answer

Projected Earnings

Question 19

A market condition that occurs when investors are pessimistic about the economy.

Accepted Answer

Bear

Question 20

In order to win the Stock Market Game, which stock would you not want to invest in?

Accepted Answer

Defensive

Question 21

The annual dividend added to the increase or decrease from the original purchase price.

Accepted Answer

Total Return

Question 22

Which of the common stock calculations is not an improvement if it increases?

Accepted Answer

Price to Earnings Ratio

Question 23

The total amount of stocks and bonds issued by a corporation

Accepted Answer

Capitalization

Question 24

The annual dividend or interest of an investment divided by the current market value.

Accepted Answer

Current Yield

Question 25

Which type of stocks are also typically defensive?

Accepted Answer

Blue-chip and Income

Question 26

Which of these is not an indicator that measures the overall condition of the stock market?

Accepted Answer

New York Stock Exchange

Question 27

Based on only the P/E ratios shown below, which would be the best investment?

Accepted Answer

10

Question 28

Which type of stock typically continues to pay dividends even when the economy is in decline?

Accepted Answer

Defensive

Question 29

Which investment usually attracts a conservative investor?

Accepted Answer

Blue-chip stock

Question 30

Report on how well or poorly a company has performed over a term.

Accepted Answer

Earnings Report

Question 31

What is the term used to describe the number of shares of stock traded in a day?

Accepted Answer

Volume

Question 32

A company with under $2 billion in capitalization.

Accepted Answer

Small cap

Question 33

The price of one share of stock divided by corporate earnings per share over the last year.

Accepted Answer

Price-Earnings Ratio

Question 34

Stocks that are issued by new companies or companies whose sales are unsteady.

Accepted Answer

Penny

Question 35

Stock that has a market value that reflect the state of the economy.

Accepted Answer

Cyclical

Question 36

The price of a defensive stock will typically do what when the economy is in decline?

Accepted Answer

Stay the same

Question 37

The price of a cyclical stock will typically do what when the economy is in decline?

Accepted Answer

Go down

Question 38

Which of the following does not influence the price of stock?

Accepted Answer

Investment theories

Question 39

Which exchanges are we investing in through the SMG?

Accepted Answer

New York Stock Exchange and NASDAQ

Question 40

Stock with higher-than-average dividends.

Accepted Answer

Income

Question 41

Which of these would most likely be a cyclical stock investment?

Accepted Answer

Ford (F)

Question 42

Buyers of preferred stock are attracted to which type of common stock?

Accepted Answer

Income

Question 43

Theory that assumes a stock's real value is found by looking at a company's future earnings.

Accepted Answer

Fundamental Theory

Question 44

A company with over $5 billion in capitalization

Accepted Answer

Large cap

Question 45

When comparing, which of these would be the higher risk investment?

Accepted Answer

Small cap

MM Investing: Evaluating Stocks (Sp 17 - 11.2)

Questions 45

MM Investing: Evaluating Stocks (Sp 17 - 11.2)

Questions 45