Wall Street Final Exam Review

The stock market crash that was brought on in part, by institutional buying and program trading

A merger between two companies with unrelated product lines is a conglomerate merger.

GNP examines only products produced at home.

The largest and oldest stock exchange is the

The Standard & Poors 500 average

The CPI is used to compare current prices with those of previous years.

A financial report published once a year by a corp. and distributed to its stockholders is a

An area on the exchange floor where particular stocks are traded is the

A dollar value assigned to stocks for bookkeeping purposes only is the book value.

Initial public offerings are handled by

The Fed is a watchdog agency that enforces federal laws pertaining to the stock market.

Part of the profits a corporation makes and divides among its shareholders is

A corporation doesn’t have to pay dividends.

A change in interest rates is

Common stock from a large, financially stable corporation w/a solid record of dividend payments

A broker who specializes in trading stocks at the trading posts where the stocks are sold is a

When an investor sells stocks for less than they paid, he/she incurs a

Stock exchanges set the prices of the stocks.

Which of the following represents ownership in a corporation?

“I want to buy 200 shares of Disney stock if the price drops to $40/share” is an example of a

If interest rates are rising, which of the following would you expect?

A stock order that is a multiple of 100 shares is

A bull market is when the market is going up.

“I want to buy 200 shares of Disney stock at the current price” is a market order.

When purchasing a stock, investors should look for a P/E ratio higher than the industry average

An electronic display of stock transactions that flashes across a screen in most brokerages is

Exxon merging with Mobil would be an example of a

Shares repurchased by a corporation are

How much of a corporation’s net profit to be paid to shareholders is determined by

Requirements to be listed on NYSE are much higher than the requirements to be listed on NASDAQ