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Stocks Review Flashcards | StudBud
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Stocks Review
Stocks Review
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Questions
30
Answers
1
If the economy is suffering from a pandemic which results in a stock price plummeting, it is a(n) _________ risk
Credit
Market
Inflation
Time Horizon
2
A company whose stocks are traded in the open market.
Private corporation
Public corporation
Sole proprietorship
Partnership
3
What is the name of the electronic stock exchange?
LSEG
NASDAQ
NYSE
Euronext
4
Which type of stocks are dividends paid first?
Preferred
Average
Common
Fancy
5
Which of these carries the least amount of risk?
Single Stock
Certificate of Deposit
Bond
Mutual Fund
6
Return on Investment is calculated by
dividing the gain/loss by the purchase price
dividing the purchase price by the current price
dividing the gain/loss by the current price
dividing the current price by the purchase price
7
Which of these has something to do with dividends?
Dollar Cost Average
SEC
DRIP
FDIC
8
How do you assess a single stock's performance?
Return on Assets
Return on Investment
Market Price
Dividends
9
If you put all your money in one stock, you would have a large ___________ risk
Concentration
Time Horizon
Inflation
Market
10
Which numerical calculation is the difference between the selling price and the purchase price?
Dividend
Current Yield
PE Ratio
Capital Gain/Loss
11
Which of these would offer the greatest potential for a higher return?
Certificate of Deposit
Mutual Fund
Bond
Single Stock
12
How is a short term capital gain taxed?
They are tax exempt.
It is taxed at 20% no matter what.
It is taxed as regular income.
It is taxed the same as a long-term capital gain.
13
The market cap formula is = Shares Outstanding X Market Price
False
True
14
IPO's are considered a safe investment.
False
True
15
If the economy is good (low interest rates, low unemployment), we are in a bull market
True
False
16
Investing the same amount of money each month to purchase more shares to lower the average price per share overall.
Dollar Cost Averaging
Dividend Reinvestment
Market Capitalization
Short Selling
17
How can investors make money on their stock investment?
By selling the stock to investors
Selling to investors and dividend payments
By getting dividends from the company
By selling the stock to the company
18
A large cap company has a market cap of over $10 billion.
True
False
19
Preferred stock gets voting rights.
True
False
20
Stock prices fluctuate because of
Market Trends
Investor Valuation
Supply and Demand
Risk
21
A profitable company might pay what to its stockholders?
Stock
Dividends
Retained Earnings
Revenue
22
If a company has a slow growth year, they must still pay out dividends.
True
False
23
A private corporation stocks are sold in the open market.
False
True
24
Which one of these is the most diversified?
Certificate of Deposit
Mutual Fund
Single Stock
Bond
25
Rebalancing a portfolio is another way of
guaranteeing a capital gain.
diversifying.
reinvesting dividends.
allocating assets.
26
Dividends are paid
quarterly
monthly
semi-annually
annually
27
The price of a stock is determined by the seller.
False
True
28
What does ESG stand for?
Environmental, Social, Governance
Environmental, Stock, Governance
Emotional, Social, Governance
Environmental, Social, Globalization
29
All companies are required by the SEC to pay dividends at least once a year.
True
False
30
Who enforces the rules and regulations of the stock market?
SCE
CSE
SEC
ABC
