What is Stock?

Profits represent ownership of shares of a company.

• True
• False

A dividend is a portion of the company's profits paid to its shareholders.

• True
• False

Investment bankers buy shares of stock on the same type of market that the general public does.

• True
• False

If a company issues dividends, preferred stock holders are paid the dividends first.

• True
• False

If a company fails, it is possible for stockholders to lose money in addition to the amount they invested.

• True
• False

You can only buy stock in publicly held corporations.

• True
• False

Holders of preferred stock usually do not have voting rights

• True
• False

Risk is only associated with the purchase of common stocks.

• True
• False

The general public buys new issues of stock on the primary market.

• True
• False

Common stock is more prone to rapid changes; therefore, there is more risk associated.

• True
• False