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- 1. Multiple ChoiceWhat is the largest equities market in the world?American Stock Exchange (AMEX)NASDAQ marketNew York Stock Exchange (NYSE)Over-the-counter (OTC) market
- 2. Multiple ChoiceWhich of the following best describes diversification?Avoiding risk by investing in blue-chip stocksputting all your investments in two financial investmentsinvesting in different types of bondsreducing risk by investing in different types of securities
- 3. Multiple ChoiceWhich type of stockholder has a vote in the company?Common StockPreferred StockTreasury Stock
- 4. Multiple ChoicePeople who invest in stocks cannot lose their money.TRUEFALSE
- 5. Multiple ChoicePeople who own stocks are guaranteed a return on the money they have invested in stocks.TRUEFALSE
- 6. Multiple ChoiceStockholders can reduce the risk on their stock investment by diversifying their portfolios.TRUEFALSE
- 7. Multiple Choice
An investor tries to make money on a stock that he thinks will go down.To trade atBidShort sellingTo close at - 8. Multiple Choice
Stock prices are rising.
Fish market
Blue chip
Bear market
Bull market
- 9. Multiple ChoiceGeneral decrease in stock prices.Flash tradingBlue chipBear marketBull market
- 10. Multiple ChoiceStatistical measure of how a section of the stock market is performing.ListedBrokerageSecuritiesIndex
- 11. Multiple ChoiceCompany’s first or initial sale of stock to the public.IPOSecuritiesIndexStock Exchange
- 12. Multiple ChoiceAn strategy in which investment dollars are spread out among industry sectors...IndexRiskDiversification
- 13. Multiple ChoiceAn investor's ability to accept loss of some or all of the money they have investedRisk ToleranceIndustryProxy
- 14. Multiple ChoiceThe number of shares traded in a company's stockBeta NumberPrice to Earnings RatioVolume
- 15. Multiple ChoiceAn arrangement of characters (usually letters) representing a particular security listed on an exchangeTickerBetaP/E Multiple
- 16. Multiple ChoiceThe DOW is currently comprised of ____________ companies102030
- 17. Multiple ChoiceStocks that are highly unpredictable would be consideredlow riskhigh riskmedium risk
- 18. Multiple Choice
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.
TRUE
FALSE
- 19. Multiple ChoiceThe condition of owning stock normally (buy low, sell high)short positionlong position
- 20. Multiple ChoiceStocks in companies in the same industries will frequently rise and fall together due to factors that exist for all members.TRUEFALSE
- 21. Multiple ChoiceSmall- and Mid-cap stocks are commonly found in the most conservative (think Grandma's) portfolios.TRUEFALSE
- 22. Multiple ChoiceJim 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?Yes, Jim is young and can ride out any market downturns.No, Jim's portfolio should be more diversified among other industries.
- 23. Multiple Choice
Is this portfolio appropriate for diversification?
PORTFOLIO:
· Under Armour stock
· Disney stock
· Pepsi stock
· Wells Fargo Bank stock
· Verizon stock
Yes
No
- 24. Multiple ChoiceWhich index is considered to be one of the best overall indicators of market performance?The DJIA (DOW)S&P 500NASDAQ
- 25. Multiple ChoiceWhy does a company decide to do a forward stock split?To make the stock more affordableTo decrease the number of shares outstanding
- 26. Multiple Choice
Two ways to achieve diversification within a portfolio is through industry diversification and market capitalization.
True
False
- 27. Multiple Choice
If a company engaged in a reverse split, it is often because...
They just want the stock price to go up
The company is in danger of being delisted off an exchange
- 28. Multiple Choice
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......
250 shares at $50 per share
1000 shares at $200 per share
1000 shares at $50 per share
- Answer choicesTagsAnswer choicesTags