The Market Cap of a company is

Price per share times the number of shares

The first thing an investor should do when considering investment options is

Set investment objectives like risk tolerance/time horizon

A share of the company's earnings paid to stockholders

The PE Ratio of a stock is

Price per share divided by the earnings per share

To calculate return on investment investors

Divide the gain on the investment by the purchase price

Companies whose stocks are trading at high PE ratios

Are expected to grow earnings rapidly

A company's stock chart can tell us

Price per share changes over time

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Bulls and Bears Game 1 Fall 2016

12 termsStudBud Administration116 plays

Intro to Stock Market - Rerun

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Questions 12

Answers

1
A stock market index like the S+P 500
Mirrors the performance of the market it represents
Provides a benchmark to measure investment performance
All of the above
Is often used in the creation of ETFs
2
The Market Cap of a company is
Earnings per share times the number of shares
Price per share times the number of shares
All of the above
Highest price per share
3
The first thing an investor should do when considering investment options is
Buy Mutual Funds
Buy stock in a company everybody has heard of
Set investment objectives like risk tolerance/time horizon
Call a stockbroker
4
Dividends are
Required payments to stockholders
All of the company's earnings
Not part of an investor's return
A share of the company's earnings paid to stockholders
5
The PE Ratio of a stock is
Shares outstanding divided by the price per share
Price per share divided by the earnings per share
Earnings per share divided by the price per share
Market cap divided by the price per share
6
The two main stock markets in the US are
Dow Jones and NYSE
S+P 500 and the NASDAQ
FTSE and NYSE
NYSE and the NASDAQ
7
To calculate return on investment investors
Divide the price per share by the earnings per share
Divide the number of shares by the price per share
Divide the purchase price by the sale price per share
Divide the gain on the investment by the purchase price
8
Companies whose stocks are trading at high PE ratios
Are very profitable
Are expected to grow earnings rapidly
Have a high price per share
Have a very large market cap
9
Investors who think the stock market is going down from current levels are often called
bullish
brilliant
chicken
bearish
10
Exchange Traded Funds (ETFs) often differ from Mutual Funds in that
ETF fees are much higher
they are passively managed
they only buys stocks on one stock exchange
they are actively managed
11
Which of the following should be considered by investors when evaluating investment returns?
Fees/commissions paid
Dividends
Stock price performance
All of the above
12
A company's stock chart can tell us
Price per share changes over time
PE Ratio
Whether the price per share will go up or down
Dividend yield

Bulls and Bears Game 1 Fall 2016 Flashcards | StudBud