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Stocks
Test Description: Stocks
Instructions: Answer all questions to get your test result.
1) What is a stock?
A
A share of ownership in a corporation.
B
None of the above.
C
A fund created by a company that presents to investors bundles of stocks.
D
A certificate issued by a government or company promising to pay back borrowed money.
2) What is a dividend?
A
A profit made from the sale of a stock.
B
None of the above.
C
The loss of money when a stock is sold.
D
a share of profits of a company given to stockholders.
3) What is a common stock?
A
Provides the basic form of corporate (company) ownership.
B
All of the above.
C
Must be issued by all corporations (companies).
D
Entitles stockholders to a voting privilege.
4) What factors affect stock market?
A
Inflation
B
Natural Disasters
C
Change in Oil Price
D
All of the above
5) What are blue chip stocks?
A
Stocks that have a good track record of success and profitability from established companies.
B
New stocks.
C
High risk stocks.
D
None of the above.
6) A preferred stock gives the owner a dividend before common stockholders.
A
False
B
True
7) What is a stock broker?
A
A president of a company.
B
An Entrepreneur.
C
A person who buys and sells stocks, bonds, and mutual funds.
D
None of the Above
8) What is a stock exchange.
A
A company that sells a product.
B
A non-for-profit organization that offers services.
C
A company that provides a service.
D
An organized market for buying and selling stocks.
9) What is investing?
A
Putting aside money for future use.
B
None of the above.
C
Lending money to another person/company.
D
Using money with the possibility of making a profit.
10) What is rate of return?
A
None of the above.
B
The amount of money you earned on an investment.
C
The percentage you earned on the investment.
D
The loss of money on an investment.
*select an answer for all questions
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