Ch. 12 Investing in Stocks

With a margin purchase, one is betting the price of the stock will decrease?

Very few people own stock in the United States

Which of these are long term investments

Income stock have a consistent history of paying low dividends

A stock split lowers the price of the stock, thus making it less affordable to investors?

A capital gain becomes profit only when you sell the stock?

Microsoft and Goggle are

Short term investments would be

Young companies, with high risk are called

Growth stocks typically pay the most certain and predictable dividends?

Gain/loss divided by cost is called

An increase in the value of stock over time is called

Investing early and often are good traits to a secure retirement

Dividend reinvesting means purchasing more shares of common stock of that company

Factors that affect stock prices are

Dollar Cost Averaging is a long term investment technique

Stock splits

Buying on Margin and leverage mean the same thing

Preferred stocks

A bear market is a prolong period of falling stock prices

Dollar cost averaging is a short term investment strategy

When selling stock, commission is

Dividends are paid to shareholders from the companies profits

By using direct investments, you may be able to buy shares at a lower price?

Common stock