You buy 40 shares of stock at $80 a share. Two weeks later you are notified that the stock has split 2-for-1. This means

You own 80 shares at $40 per share.

The interest earned on US Savings Bonds is:

Exempt from state and local taxes.

Before a corporation can issue stocks or bonds, it must register the issue with:

The Securities and Exchange Commission (SEC)

Using a brokerage firm, you buy 1,000 shares of a common stock at $50 a share on 50% margin. This means that:

The brokerage firm is lending you 50% of the money.

You buy a small house that has 3 small rental units. Your profits from this investment may be lower than expected if:

One of the units is not rented.

When is there high risk for a stock to become worthless?

The business that issued the stock is about to declare bankruptcy

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W!SE - Practice Certification - Investing

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1
You buy 40 shares of stock at $80 a share. Two weeks later you are notified that the stock has split 2-for-1. This means
You own 80 shares at $40 per share.
You own 20 shares at $80 per share.
You own 80 shares at $80 per share.
You own 40 shares at $40 per share.
2
What is the largest equities market in the world?
New York Stock Exchange (NYSE)
Over-The-Counter (OTC) Market
American Stock Exchange (AMEX)
NASDAQ Market
3
The interest earned on US Savings Bonds is:
Equal to the money paid to purchase it.
Exempt from state and local taxes.
Paid in a lump sum at the time the face value on the bond is reached.
Deducted at the time of the bond's purchase.
4
A stock pays a $2 per share dividend. If you choose to reinvest that dividend, the $2 dividend will go towards buying:
Stocks that are similar to those aleady owned.
Bonds in the corporation.
More of the same stock.
Preferred stock in the corporation.
5
Buying a treasury bill (T-Bill) is best for investors who are looking for:
A higher yield on their investment than corporate bonds offer.
A secure, low risk investment
A place to invest between $100-$500
An investment that matures in 10-30 years.
6
A pharmacy is to drugs as the American Stock Exchange is to:
Stock advisors
Interest
Securities
Mutual Funds
7
Before a corporation can issue stocks or bonds, it must register the issue with:
The Federal Reserve
The Securities and Exchange Commission (SEC)
The World Bank
Its Board of Directors
8
Using a brokerage firm, you buy 1,000 shares of a common stock at $50 a share on 50% margin. This means that:
The brokerage firm is lending you 50% of the money.
The brokerage firm will own 50% of the stock that was purchased.
You are buying 2,000 shares.
You will pay only $5,000 for the shares.
9
You buy a small house that has 3 small rental units. Your profits from this investment may be lower than expected if:
One of the units is not rented.
The mortgage on the house is paid off.
Taxes on the house are lowered.
A tenant in one unit decides to paint the hallways.
10
When is there high risk for a stock to become worthless?
The financial markets are fluctuating
Market stock prices are increasing
The business that issued the stock is about to declare bankruptcy
The interest rates are decreasing

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