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Stock Market
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StudBud Administration
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The basic terms related to decision making concerning stock purchases.
Flashcards
21 cards
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Questions
21
Answers
1
Where can you look to find what the company sells or services it offers?
The Comparison Chart
The Company Profile
The Historical Chart
2
If a beta is 1.25 what would that tell you?
The stock is no longer being traded.
That the stock is above average risk.
The stock is below average risk.
3
Which of the following is a strong indicator?
Beta Number & P/E ratio
Comparing gross profits by quarter or year
Past and Future growth
4
Indicate which is true of a mutual fund.
Usually less risk than individual stock purchases
You can own pieces of stocks that are 2 expensive to buy.
They are a loan to the gov't or business
5
The purpose of investing is...
to make money fast
To help pay for large expenses like college, etc
to increase wealth over a long period of time (decades)
6
Which of the following best describes P/E ratio?
Indicates the stock is a poor buy
Comparison between 2 stocks, showing which is the best buy.
A number that indicates how risky the stock is.
7
Diversification means...
To divide stocks up when a company is sold
To invest money into one stock.
Investment portfolio with various industries represented.
8
The historic chart can indicate what...
Can see trends in the market like a recession
It does not give significant information.
How volatile the stock has been over a period of time.
When the company started selling stocks
9
Current events can affect the stock market
False
True
10
The 52 week range is
Indicates gross profit
The lowest & highest the price of the stock
Is a strong predictor of company success
11
A bond is...
Is the least amount of risk, compared to stocks/mutual funds
Is a loan to the gov't or a buisness
High Risk of losing your investment
12
As we get closer to Halloween is now a good time to invest in a candy company?
YES! They will be selling a lot of product.
YES! A lot of people buy candy.
No, they are expecting the increased sales.
13
Supply and Demand can be seen by looking at...
stock price growth
Volume of stock
52 week range
14
Future 5 year growth can...
Guarantee how much the stock will increase
Predict how much the stock will grow in the next 5 years
Indicate how much the market will grow in 5 years.
15
Market Cap tells you
How much the company is worth
How much debt the company has
How much the company has earned this quarter
16
The 1 year stock estimate is
A Predication
A Fact
An Opinion
17
Looking at a company's debt is important in the decision making process.
False
True
18
A brokers fee is...
On all transactions
Is usually a percentage of the investment total
The fee paid to a financial adviser for transactions.
19
Gross Profit is a good indicator of a company's profit.
True
False
20
What is a dividend?
A quarterly payout from the company per share of stock owned
A fee paid to the company each quarter
When a company divides its stocks.
21
The past 5 year growth can indicate...
company profit.
company growth
company earnings