1. Investments that have high risk may provide higher returns over time than investments with less risk.
a.true
b.false
2. Based on the Rile of 72, if you invest money and earned 6% interest, your money would be double in
a. 12 years
b. 72 years
c. 8 years
3. Cody owns 100 shares of PEP stock. PEP pays an annual dividend of $4.00 per share. Cody will receive his first quarterly payment on march 30. the dividend check will be for:
a. $400
B.$100
c $4.00
4. Which of the following is not a listing requirement for the NYSE?
a. earnings
b. number of shares
c. type of products/services offered
5. A company gets money from shareholders when it:
a. makes a profit
B. shares are traded between buyers and sellers
c. type of products/services offered
6. IPO means:
a. initial public offering
b. investor protection between buyers and sellers
c. its stock is issued
7. If you own 100 shares of MartCo stock, valued at $15.45 per share, and this stock has split 2 for 1, then this means that
a. you now own 200 shared of MartCo stock worth $1,545.00
B you now own 100 shared of MartCo stock worth $722.50
C. you now own 200 shares of MartCo stock worth $3,090.00
8. interest earned on interest occurs with:
a. diversification
b. compounding
c. buying on margin
9. A bond is:
a. contract of credit
b. money borrowed from the bank
c. type of IOU
10. the statement “risk and reward are related” implies:
a. making money in the stock market is risky
b. the higher the risk the higher the reward
c there is no reward in taking risk
11. An important diference between common stock and preferred stock is that the price of the stock tends to be more stable, changing little over time, than of preferred stock.
a. true
b. false
12. You love M&Ms! you bought 210 shares of Mars compant at $24 to add to your portfolio. While eating away, you earned a dividend of .75 a share. Later you decide you are getting fat and you sell your Mars stock for $32 a share. How did your candy addiction affect your investment?
a. you made $6,877.50 profit
b. you lost $1,522.50
c. you made $1837.50 profit
13. You could find a tombstone ad in the:
a. classified section of the newspaper listing company’s going out of business
b. company’s annual report.
c. Wall street journel
14. Mary’s mother owns KLA stock. She currently recieves a dividend payment every quarter. She is guaranteed to recieve a dividend every quarter as long as she owns KLA stock.
A. true
B. False
15. Stock prices fall because:
a. companies dont make profits everyday
b. there are more sellers than buyers
c. dividends are paid
16. common stock ownership gives investors
a. voting rights in shareholders meetings
b. guaranteed divideds
c. low risk with higher rate of return