Stocks: Question Preview (ID: 29852)

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What is a stock broker?
a) A person who buys and sells stocks, bonds, and mutual funds.
b) A president of a company.
c) An Entrepreneur.
d) None of the Above

What is a stock exchange.
a) A company that provides a service.
b) A company that sells a product.
c) An organized market for buying and selling stocks.
d) A non-for-profit organization that offers services.

A preferred stock gives the owner a dividend before common stockholders.
a) True
b) False

What are blue chip stocks?
a) New stocks.
b) Stocks that have a good track record of success and profitability from established companies.
c) High risk stocks.
d) None of the above.

What factors affect stock market?
a) Natural Disasters
b) Inflation
c) Change in Oil Price
d) All of the above

What is a common stock?
a) Provides the basic form of corporate (company) ownership.
b) Must be issued by all corporations (companies).
c) Entitles stockholders to a voting privilege.
d) All of the above.

What is a dividend?
a) A profit made from the sale of a stock.
b) The loss of money when a stock is sold.
c) a share of profits of a company given to stockholders.
d) None of the above.

What is a stock?
a) A share of ownership in a corporation.
b) A certificate issued by a government or company promising to pay back borrowed money.
c) A fund created by a company that presents to investors bundles of stocks.
d) None of the above.

What is investing?
a) Putting aside money for future use.
b) Using money with the possibility of making a profit.
c) Lending money to another person/company.
d) None of the above.

What is rate of return?
a) The amount of money you earned on an investment.
b) The percentage you earned on the investment.
c) The loss of money on an investment.
d) None of the above.

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