Investing in Stocks Ch. 12

T or F. Short selling is stocks borrowed from a broker that must place at a later time?

Owning shares of stock

Calculate. 100 shares X $22 per share + $100 commission.

T or F. Auction market is a place that buyers and sellers get together to trade securities?

T or F. A marketplace is where brokers meet to buy and sell securities, is called OTC market?

T or F. Dividend reinvestment is the using of dividends before earned on the stocks to buy more

Calculate. $400/(divided by) $2,300.

T or F. With a margin agreement, you can borrow money without signing a contract?

T or F. Bull market is the rising of stock prices and general feeling of investor optimism?

Calculate. 100 shares X $28 per share - $100 commission.

A stockholders written authorization to transfer his or her voting rights to someone else

A prolonged period of falling stock prices and a general feeling of investor optimism

A type of stock that pays a variable dividend and gives the holder voting rights

Calculate. $2, 700 income - $2,300 cost.

Stocks in corporations that reinvest their profits into the business so that it can grow