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Stock Investing - Vocabulary Flashcards | StudBud
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Stock Investing - Vocabulary
Stock Investing - Vocabulary
18 terms
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StudBud Administration
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139 plays
A #stocktermsreview to assist with #investment vocabulary building.
Flashcards
18 cards
F
Practice quiz
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Host live
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Questions
18
Answers
1
Stocks represent ownership in a corporation.
True
False
2
The New York Stock Exchange is the only place where people can buy and sell stocks.
False
True
3
Mark bought 100 shares of stock. Each share sold for $35.50. Mark paid $3,550 for the shares.
False
True
4
Why do corporations issue stock?
To raise money to pay for equipment, buildings, etc.
To avoid paying corporate taxes.
To provide employees a pay raise.
To borrow money
5
People who invest in stocks cannot lose their money.
True
False
6
When people buy stock on a stock market (exchange),
the people buying the stock receive the money.
the corporation receives the money
the people selling the stock receive the money.
the corporation loses money.
7
When the shares of stock are first issued, to whom are they sold?
secondary market buyers
shareholders
stock brokers
investment banks
8
The only way stockholders make money is through dividend payments while they own the stock.
False
True
9
When people buy stock from an investment bank during an IPO,
the stock brokers selling the stock receive the money.
the bank selling the stock receives the money.
the corporation loses money.
the corporation receives the money.
10
The price people pay for a stock is called a dividend.
True
False
11
The beginning investor purchasing stocks should be in the _____ stage of investing.
1st
3rd
4th
2nd
12
People who own stocks are guaranteed a return on the money they have invested in stocks.
False
True
13
One way stockholders make money is by selling their stock for more money than they paid for it.
True
False
14
A
capital gain
is described as:
money earned by households in return for providing resources
part ownership in a corporation
selling stock for a higher price than paid
part of a company’s profits that is paid to owners
15
Stockholders can reduce the risk on their stock investment by diversifying their porfolios.
True
False
16
What does the term,
IPO
, refer to?
Internal Price Offering
Initial Percentage Outcome
International Price Offering
Initial Public Offering
17
People buy stocks because
the government encourages them to buy stock.
they are guaranteed interest payments each year.
there is no chance of a loss.
they expect to earn a return.
18
What are dividends?
Repayment of a loan.
Commissions paid to stock brokers.
Part of the company’s profits, distributed to owners.
Ownership in a corporation.
