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5 Written Questions

5 Matching Questions

  1. round lot
  2. limit order
  3. dividend
  4. fraud risk
  5. stock
  1. a the risk that an investment has been misrepresented
  2. b stocks are usually purchased in multiples of 100 shares, called _________.
  3. c an order to purchase stocks at a specified price
  4. d the money from profits of a company that is paid to the stockholders
  5. e an ownership share or shares of ownership in a corporation

5 Multiple Choice Questions

  1. the government agency, established in 1934, that protects investors in stocks and bonds.
  2. the first time a corporation's stock is offered for sale to the public
  3. the largest stock exchange, located in New York
  4. shares of ownership in a corporation that give stockholders voting rights and a portion of future profits (after holders of preferred stock are paid)
  5. the price of the stocks divided by the earnings the company made for the last year. Listed in most stock quotes, it is used to determine how cheap or expensive a stock is compared to other stocks

5 True/False Questions

  1. market orderan order to purchase stocks at the current price


  2. savings bondsbonds issued by the federal government as a way of borrowing money; they are purchased at half the face value and increase every 6 months until full face value is reached


  3. bear marketstock prices are falling, investors are pessimistic


  4. Dow Jones Industrial Averagea measure of stock market prices based on thirty leading companies of the New York Stock Exchange


  5. bull marketstock prices are rising, investors are optimistic


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