Quiz Quiz: What is a Stock?

People who invest in the stock market will automatically make money.

You risk only the money you invest.

An important difference between common stock and preferred stock is that the price of the preferred stock tends to be

Common stock entitles the owners (___________) to collect dividends if the company declares them.

A dividend is a portion of the company’s profits paid to its shareholders

Generally, companies can offer two types of stock,

When you buy stock, you become part-owner of a ______ company—no matter how many shares you own.

No matter how many shares of stock you own, you are a part owner of the company.

Stockholders who purchase preferred stock are usually guaranteed a ____________payment.

Young investors as well as old will always be faced with the question: