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Finance Review #7 Flashcards | StudBud

Explore/Finance Review #7

Finance Review #7

7 terms·StudBud Administration·33 plays

What causes stock prices to fluxuate?

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Questions 7

Answers

1
Which of the following is a cyclical stock:
Southwest Water Co. (SWWC)
US Concrete (RMIX)
Triad Hospitals Inc. (TRI)
Colgate-Palmolive Co. (CL)
2
How much a stock sells for depends directly on which of the following:
What buyers are willing to pay for the stock
How volatile the stock is
How high the company’s earnings are
The popularity of the company’s new product
3
Stocks whose prices rise higher than, or fall lower than, the market as a whole are
successful.
efficient.
volatile.
influential.
4
Which of the following is a company-specific influence on a stock’s price:
Change in supply or demand
Government action
Investor action
Change in management
5
Which of the following is not likely to cause a stock’s price to fluctuate:
Addition to individual investor’s portfolio
A well-known analyst’s recommendation to buy
Removal from the S&P 500
A fund manager’s sale of stock
6
What is the difference between a stock’s ask price and buy price?
Ask price = sell price, Buy price = bid price.
The ask price is usually higher than the buy price.
The ask price and buy price are usually equal.
Buy price = sell price, Ask price = bid price.
7
In what way can the general state of the economy affect a stock’s price?
By increasing supply or demand
By making investment information available to the public
By bringing together a balanced portfolio
By filtering out poor investments