Which is the primary reason that most companies issue stock?

To raise money for continued company growth

What is a share of stock?

a portion of ownership in a company

"Large Cap" companies (companies with large market capitalization) are considered:

established and stable, with low growth potential

Which is mostly true about growth stocks?

they soar in value when times are good, but can tank

studbud

Stock Market Basics

10 termsStudBud Administration370 plays

This quiz is designed to test students' prior knowledge of some basic stock market facts.

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
Which is the primary reason that most companies issue stock?
Because they can't find enough private investors
To generate publicity for the company
To allow others to share in their success
To raise money for continued company growth
2
What is a share of stock?
a portion of ownership in a company
a person who buys and sells stocks
an exchange where stocks are traded
money paid to investors based on company performance
3
What does market capitalization mean?
a stock market crash
what a company is worth
the maximum price of a stock
none of the above
4
"Large Cap" companies (companies with large market capitalization) are considered:
established and stable, with low growth potential
new, small companies with high growth potential
established yet unstable, with high growth potential
new, large companies with high growth potential
5
The historical market average for a return on an investment in a stock is...
60%
200%
2%
10%
6
An individual stock's price can rise, even when the market falls.
True
False
7
The P/E ratio, one calculation used to value stocks, stands for:
performance over estimates
price over estimates
performance over earnings
price over earnings
8
A well-balanced portfolio typically includes10-15 stocks in 7 or more industries.
Too few stocks
Too many stocks
True
9
What is the primary factor that determines the price of a stock in the long term?
fear and rumors
company management
company earnings
competitive stock prices
10
Which is mostly true about growth stocks?
all tech stocks are growth stocks
they are the most expensive to buy
they maintain consistent value despite market fluctations
they soar in value when times are good, but can tank

Stock Market Basics Flashcards | StudBud