Investing Question Preview (ID: 33481)


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An investor buys 100 shares of a common stock at $36.00 a share. The stock is not selling at $38.00 a share. When deciding whether to hold or sell the stock, which factor is it important for the investor to consider?
a) The number of stockholders the corporation has.
b) The commission charged for buying and selling the stock.
c) The date of the next stockholder's meeting.
d) The place that the stock certificate is being help.

A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go toward buying
a) more of the same stock.
b) stocks that are similar to those already owned.
c) preferred stock in the corporation.
d) bonds in the corporation.

Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
a) Its Board of Directors
b) The Federal Reserve
c) The World Bank
d) The Securities and Exchange Commission (SEC)

An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later the investor receives notice that the corporation has approved for a 2-for-1 stock split. Based on this information, the investor would own at the moment of split
a) 20 shares of the stock and the price of each share is $80.
b) 40 shares of the stock and the price of each share is $40.
c) 80 shares of the stock and the price of each share is $40.
d) 80 shares of the stock and the price of each share is $80.

What is the largest equities market in the world?
a) American Stock Exchange (AMEX)
b) NASDAQ market
c) New York Stock Exchange (NYSE)
d) Over-the-counter (OTC) market

Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the
a) investor will pay only $5000 for the shares.
b) investor is buying 2000 shares.
c) brokerage firm is lending the investor 50% of the money.
d) brokerage firm will own 50% of the 1000 shares of stock that were purchased.

Buying a treasury bill (T-bill) is best for investors who are looking for
a) a place to invest between $100-$500.
b) a secure, low risk investment.
c) a higher yield on their investment than corporate bonds offer.
d) an investment that matures in 10-30 years.

As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower than expected it the
a) tenant in an apartment decides to paint the hallways.
b) mortgage on the house is paid off.
c) taxes on the house are lowered.
d) one of the apartments is not rented.

A pharmacy is to drugs as the American Stock Exchange is to :
a) interest
b) securities
c) stock advisors
d) mutual funds

The interest earned on the United States Series EE Savings Bonds is
a) exempt from state and local taxes.
b) paid in a lump sum at the time the face value on the bond is reached.
c) equal to the money paid to purchase it.
d) deducted at the time of the bond's purchase.

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