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tmassie40 PF Chapter 17 Investing in Stocks Flashcards | StudBud
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tmassie40 PF Chapter 17 Investing in Stocks
tmassie40 PF Chapter 17 Investing in Stocks
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Chapter 17 review questions and vocabulary.
Flashcards
20 cards
F
Practice quiz
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Host live
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Questions
20
Answers
1
Stocks in corporations that reinvest profits into the business so that it can grow are ______.
public stocks
market stocks
income stocks
growth stocks
2
Brokers in the over-the-counter market deal face to face with other brokers.
False
True
3
Dollar-cost averaging is a short-term investment strategy.
False
True
4
A(n) ____ market is characterized by rising stock prices and investor optimism.
stock
money
fish
bull
5
Which of the following factors affects the price you will pay for a share of stock?
all of the above
the company
stock market conditions
earnings per share
6
You can assign your stock voting rights to someone else by completing a proxy.
True
False
7
____ stocks are a popular choice for retirees.
Growth
Emerging
Cyclical
Income
8
Which of the following is used to evaluate the efficiency of an investment?
earnings per share (EPS)
return on investment (ROI)
percent yield
price/earnings (P/E) ratio
9
Which of following is the oldest and most widely known stock index?
the Dow Jones Industrial Average
the New York Stock Exchange
the NASDAQ Composite Index
the Standard and Poor's 500
10
With preferred stock, dividends are fixed, regardless of how the company is doing.
True
False
11
____ is the price for which the stock is bought and sold in the marketplace.
Bear value
Market value
Makers value
Par Value
12
A marketplace where brokers buy and sell securities is called a(n) _____.
securities exchange
speculator
buying on margin
common stock
13
The par value assigned to a stock has nothing to do with the stock's market value.
True
False
14
Very few people (individuals) in the United States own stock.
False
True
15
Stocks that have a history of consistently paying high dividends are called ____ stocks.
bull
income
market
growth
16
Stocks of large, well-established corporations are called ____ stocks.
potato chip
blue chip
yellow chip
red chip
17
Borrowing money to buy stock is called ______.
stock split
floor brokers
stock index
buying on the margin
18
A(n) ____ market is characterized by falling stock prices and investor pessimism.
bear
split
bull
fish
19
A ____ buys and sells stock within a short period of time.
bank
speculator
broker
company
20
Which strategy lowers the selling price of a stock and encourages investors to buy more?
short selling
dividend reinvestment
dollar-cost averaging
stock split