Stock Diversification
2 years ago
kriscorrado
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28 QuestionsShow answers
  • Question 1
    30 seconds
    Q. What is the largest equities market in the world?
    answer choices
    American Stock Exchange (AMEX)
    NASDAQ market
    New York Stock Exchange (NYSE)
    Over-the-counter (OTC) market
  • Question 2
    30 seconds
    Q. Which of the following best describes diversification?
    answer choices
    Avoiding risk by investing in blue-chip stocks
    putting all your investments in two financial investments
    investing in different types of bonds
    reducing risk by investing in different types of securities
  • Question 3
    30 seconds
    Q. Which type of stockholder has a vote in the company?
    answer choices
    Common Stock
    Preferred Stock
    Treasury Stock
  • Question 4
    30 seconds
    Q. People who invest in stocks cannot lose their money.
    answer choices
    TRUE
    FALSE
  • Question 5
    30 seconds
    Q. People who own stocks are guaranteed a return on the money they have invested in stocks.
    answer choices
    TRUE
    FALSE
  • Question 6
    30 seconds
    Q. Stockholders can reduce the risk on their stock investment by diversifying their portfolios.
    answer choices
    TRUE
    FALSE
  • Question 7
    30 seconds
    Q. An investor tries to make money on a stock that he thinks will go down.
    answer choices
    To trade at
    Bid
    Short selling
    To close at
  • Question 8
    30 seconds
    Q.

    Stock prices are rising.

    answer choices

    Fish market

    Blue chip

    Bear market

    Bull market

  • Question 9
    30 seconds
    Q. General decrease in stock prices.
    answer choices
    Flash trading
    Blue chip
    Bear market
    Bull market
  • Question 10
    30 seconds
    Q. Statistical measure of how a section of the stock market is performing.
    answer choices
    Listed
    Brokerage
    Securities
    Index
  • Question 11
    30 seconds
    Q. Company’s first or initial sale of stock to the public.
    answer choices
    IPO
    Securities
    Index
    Stock Exchange
  • Question 12
    30 seconds
    Q. An strategy in which investment dollars are spread out among industry sectors...
    answer choices
    Index
    Risk
    Diversification
  • Question 13
    30 seconds
    Q. An investor's ability to accept loss of some or all of the money they have invested 
    answer choices
    Risk Tolerance
    Industry
    Proxy
  • Question 14
    30 seconds
    Q. The number of shares traded in a company's stock 
    answer choices
    Beta Number
    Price to Earnings Ratio
    Volume
  • Question 15
    30 seconds
    Q. An arrangement of characters (usually letters) representing a particular security listed on an exchange
    answer choices
    Ticker
    Beta
    P/E Multiple
  • Question 16
    30 seconds
    Q. The DOW is currently comprised of ____________ companies
    answer choices
    10
    20
    30
  • Question 17
    30 seconds
    Q. Stocks that are highly unpredictable would be considered
    answer choices
    low risk
    high risk
    medium risk
  • Question 18
    30 seconds
    Q.

    While stocks have been added and removed from the DOW over the years, General Electric (GE) was the only company that, until recently, had been included in the dow for over 100+ years.

    answer choices

    TRUE

    FALSE

  • Question 19
    30 seconds
    Q. The condition of owning stock normally (buy low, sell high)
    answer choices
    short position
    long position
  • Question 20
    30 seconds
    Q. Stocks in companies in the same industries will frequently rise and fall together due to factors that exist for all members.
    answer choices
    TRUE
    FALSE
  • Question 21
    30 seconds
    Q. Small- and Mid-cap stocks are commonly found in the most conservative (think Grandma's) portfolios.
    answer choices
    TRUE
    FALSE
  • Question 22
    30 seconds
    Q. Jim is 25 years old; his entire investment portfolio is in a variety of healthcare stocks (large, mid, and small sized companies).  Is this an appropriate investment strategy?
    answer choices
    Yes, Jim is young and can ride out any market downturns.
    No, Jim's portfolio should be more diversified among other industries.
  • Question 23
    30 seconds
    Q.

    Is this portfolio appropriate for diversification?


    PORTFOLIO:

    · Under Armour stock

    · Disney stock

    · Pepsi stock

    · Wells Fargo Bank stock

    · Verizon stock

    answer choices

    Yes

    No

  • Question 24
    30 seconds
    Q. Which index is considered to be one of the best overall indicators of market performance?
    answer choices
    The DJIA (DOW)
    S&P 500
    NASDAQ
  • Question 25
    30 seconds
    Q. Why does a company decide to do a forward stock split?
    answer choices
    To make the stock more affordable
    To decrease the number of shares outstanding
  • Question 26
    30 seconds
    Q.

    Two ways to achieve diversification within a portfolio is through industry diversification and market capitalization.

    answer choices

    True

    False

  • Question 27
    30 seconds
    Q.

    If a company engaged in a reverse split, it is often because...

    answer choices

    They just want the stock price to go up

    The company is in danger of being delisted off an exchange

  • Question 28
    30 seconds
    Q.

    You own 500 shares of INTC which is trading for $100 a share; the company executes a 2:1 forward split. After the split, you will have......

    answer choices

    250 shares at $50 per share

    1000 shares at $200 per share

    1000 shares at $50 per share

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