York Econ Club - Stock Market

Question 1

Stock dividend payments, or stock splits, are done for which two reasons?

Accepted Answer

Attract attention to a stock and increase its trading

Question 2

What is the 52 week range?

Accepted Answer

Lowest/highest price a stock has traded in the previous year

Question 3

What is the most important thing to notice when looking at a stock quote?

Accepted Answer

The time stamp that shows how old is the stock quote.

Question 4

Gross Profit is a good indicator of a company's profit.

Accepted Answer

True

Question 5

When you own at least one share of a company, you have a share of that company's ownership.

Accepted Answer

True

Question 6

The one year stock estimate is...

Accepted Answer

A prediction based on market trends

Question 7

As we get closer to Halloween is now a good time to invest in a candy company?

Accepted Answer

No, they are expecting the increased sales.

Question 8

Past 5 year growth indicates...

Accepted Answer

Company earnings

Question 9

What is diversification?

Accepted Answer

Investment portfolio with various industries represented

Question 10

Why should you diversify your stock portfolio?

Accepted Answer

At different times, some industries outperform others

Question 11

A brokers fee...

Accepted Answer

Occurs on all transactions (buying/selling), Is the fee paid to a financial adviser for transactions.

Question 12

What do companies tend to do if they want to raise more money?

Accepted Answer

Sell more shares of their stock

Question 13

What is market cap?

Accepted Answer

Value of the shares outstanding of a publicly traded company, Share price times the number of shares outstanding

Question 14

Where can you look to find what the company sells or services it offers?

Accepted Answer

Company Profile

Question 15

How many stock trades are made per day?

Accepted Answer

billions

Question 16

What is the first share price made available to potential buyers is called?

Accepted Answer

Initial Public Offering (IPO)

Question 17

Indicate which is true of a mutual fund.

Accepted Answer

Usually less risk than individual stock purchases, Own pieces of stocks that are too expensive to buy

Question 18

The historic chart can tell you...

Accepted Answer

When the company started selling stocks, How volatile the stock has been over a period of time.

Question 19

What is a P/E ratio?

Accepted Answer

Measures current share price to per-share earnings

Question 20

The purpose of investing is...

Accepted Answer

to increase wealth over a long period of time

Questions 20