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Math Finance_Stock Market Flashcards | StudBud
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Math Finance_Stock Market
Math Finance_Stock Market
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Stock Market
Flashcards
35 cards
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Questions
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Answers
1
A corporation's after-tax annual earnings divided by the total number of shares of common stock
YTD %
earnings per share
price/earnings ratio
YTD change
2
Stock price % change from Jan. 1st of the current year to the current date is:
the company's BETA
the stock's high and low
P/E ratio
YTD or Year To Date change
3
Common stock
is the same thing as a bond
most basic form of ownership
always pays dividends
rare stock
4
Speculative stocks
are the safest type of stock purchase
are low risk investments
are good stocks to start your investment portfolio with
potential for substantial earnings
5
Countercyclical stocks:
are sold over the counter
give consistent returns even when the economy is suffering
None of the above
are best purchased during times of growth in the economy
6
Acme Eats has $120,000 in assets & $52,000 in liabilities. What is the company's book value?
Book Value = $55,000
Book Value = $120,000
Book Value = $172,000
Book Value = $68,000
7
Happy Feet Pet Sitters has assets of $73,000 & liabilities of $59,500. What is its book value?
$13,500
$15,300
$123,500
$132,500
8
What are the major stock exchanges in the United States?
SEC, NYSE, NASDAQ
NYSE, SEC, NASDAQ, AMEX
NYSE, NASDAQ, AMEX
AMEX, FRS, NASDAQ
9
A person who is licensed to buy & sell stocks, as well as provide investment advice is:
None of the above
A Realtor
A Broker
A Banker
10
Cyclical stocks are
are influenced by the tides
are influenced by Congress
are influenced by changes in the business cycle
are influenced by the president
11
The stock exchange is organized and operates on the basis of what economic principle?
Marginal Return
Supply & Demand
Absolute and Comparative Advantage
Opportunity Cost
12
The largest stock exchange with the strictest company standards is
NYSE
SEC
AMEX
NASDAQ
13
A period of several months or years during which stock prices consistently rise is known as
A Bear Market
A declining market
A flat market
A Bull Market
14
The 2 basic types of stock are:
growth & value stock
blue chip & speculative stock
preferred & common stock
cyclical & counter-cyclical stock
15
A stock with a low market price in relation to historical earnings records and value of assets:
Value Stock
Preferred Stock
Cyclical Stock
Speculative Stock
16
Ratio indicating how much an investor is willing to pay for each $ of a company's earnings is
Price/earnings ratio (P/E)
The company's BETA
The stocks earnings per share
Dividend yield percentage (YLD%)
17
What is a stock?
livestock
a share of ownership in a corporation
inventory for a business
quantity of something accumulated
18
Jack & Jill Day Care has assets of $159,500 & liabilities of $165,000. What is its book value?
$324,500
-$5,500
$5,500
$100,000
19
Preferred stock is
have fixed dividends & take priority over common stock
never pays dividends
not sold on stock exchanges
None of the above
20
Why do corporations issue stocks?
goodwill to their customers
to raise funds
none of the above
to offer ownership to others
21
My investment portfolio should be composed of
bonds only
stocks only
a variety of diverse investment tools to minimize risk
100% high risk investments that are highly aggressive
22
Why should investors have a variety of types of stocks as part of a diversified portfolio?
minimize risk & maximize return
to make the portfolio interesting
required by the Securities & Exchanges Commission
because my finance teacher said so
23
When a share of stock worth $100.00 becomes 2 shares of stock worth $50.00 each
a stock has been purchased.
a stock split has occurred.
a stock has been sold.
a stock has been devalued.
24
Blue-chip stocks
are issued by nationally recognized companies
usually show consistent, steady growth
are less risky
all of the above
25
Type of market in which stocks perform poorly and investors are not confident in the economy?
Bull market
Bear market
Aggressive market
Stable market
26
What are dividends?
a reward
distributions of earnings paid to stockholders
a number that is to be divided by a divisor
a share of anything divided
27
Stock splits, dollar value changes, mergers and dividends are
4 ways to define an investment
4 methods of investing in stock
4 ways the value of a stock may change
4 reasons to invest in bonds
28
Book value for a company is calculated as
assets minus liabilities
stock prices
stock market valuation
liabilities-assets
29
In business, book value is
records of a company's liabilities
printed work of fiction or nonfiction
an instrument of learning
a company's net worth
30
What is a bond?
a type of debt a company issues to investors
binding security
something that binds, fastens, confines, or holds together
an agreement or friendship
31
Aftertax annual earnings divided by total number of shares of common stock is the formula for
earnings per share for a company's stock
a company's net worth
price/earnings ratio for a company
book value for a company
32
McDoughall's Creations, Inc. price per share is $89; earnings per share is $4. Find P/E ratio.
.0049
222.5
22.25
4.90
33
The selling prices for one share of stock the previous day:
Good and bad
Daily net worth of the stock
High and low
Stock Yield
34
Stock exchange with less restrictive regulations, allowing it to list smaller companies.
American Stock Exchange (AMEX)
NASDAQ
Securities & Exchange Commission
New York Stock Exchange (NYSE)
35
Growth stocks are from companies who
pay higher dividends than other types of stocks
considered investment bargains
consistent growth & earnings in most economic conditions
have larger stock certificates
