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Economics Ch. 8 (BJU) Flashcards | StudBud
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Economics Ch. 8 (BJU)
Economics Ch. 8 (BJU)
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Questions
26
Answers
1
20. The NASDAQ is famous for having no trading floor.
False
True
2
25. Shares of stock are portions of the profit of a company.
True
False
3
18. The DJIA consists of fifty companies.
True
False
4
17. Charles Dow began his stock index with one hundred companies.
False
True
5
1. The primary purpose of a stock index is to...
identify trends in an industry
predict economic recessions
identify the most profitable companies
track prices in an economy
6
4. What is currently the most reputable stock exchange in the world?
NYSE
London Stock Exchange
NASDAQ
Amex
7
19. Charles Dow invented the first stock index.
False
True
8
14. Mutual funds are privately managed stock portfolios.
False
True
9
22. Stock exchanges first appeared in France and Austria.
False
True
10
13. Investing in the stock market is no different than gambling?
True
False
11
23. The stock market tape is where stock transactions are posted.
True
False
12
3. The first American stock exchange was located in...
Boston
Washington, DC
New York City
Philadelphia
13
12. What is a distribution of a portion of a company's profit?
A dividend
None of the above
Stock
Commission
14
16. A bear market in one in which the market is rising.
True
False
15
11. The SEC was founded following which important historical event?
the American Civil War
World War II
the Panic of 1837
the Great Depression
16
21. The NYSE was the first American stock exchange.
False
True
17
7. If a corporation files for bankruptcy and sells all its assets, who would receive payment last from the proceeds
Common shareholders
Employees
Preferred shareholders
Creditors
18
10. The stock market crash of 1929 was a result of...
a speculative bubble
an economic recession
a collapse in supply
a run of the banks
19
9. Which of the following is considered the best health indicator of American industry?
DJIA
NYSE
S & P 500
Amex
20
24. Stockholders usually have no say in how the business is run.
False
True
21
15. Stock markets are important to many American's retirement planning.
False
True
22
5. What is the term for a corporation's first sale of stock?
Preferred stock
Preliminary stock option
Common stock
Initial public offering
23
26. The most prevalent type of stock is preferred stock.
False
True
24
8. Stockholders can be called to vote on...
All of the above
Expanding into a new market
Hiring or firing a manager
Electing a board of directors
25
6. Which of the following is
NOT
considered to be a benefit of preferred stock?
Preferred stockholders receive dividends before common stockholders
Preferred stockholders receive compensation before common stockholders
It carries less risk of loss
It gives the right to vote on company matters
26
2. The stock exchange famous for having no "floor" is...
the NASDAQ
the NYSE
the London Stock Exchange
Amex
