Holding Stock Objective Assessment

The word “stock” refers to a share of ______ in a particular company.

• ownership

• dividends

• pie

• revenues

_____ is the estimate of the total value of the company based on the number of shares out there and the value that the market places on each share.

• Market capitalization

• Company capitalization

• Market value

• Capitalization cost

When you basically assign someone else to vote on your behalf.

• proxy

• praxis

• duplicate

• directed vote

You can also issue a _____________ which means you’ll buy the stock at whatever price the market is currently selling it for.

• market order

• limit order

• purchase order

• directed order

A _______________ is just a collection of stocks, typically chosen by a fund manager. The fees charged go to pay the fund manager’s salary (and the salaries of anyone working for the manager).

• mutual fund

• money market fund

• bond

• stock exchange

A mutual fund without an active manager – it operates based on a clearly-specified set of rules that do not require active intervention. Thus, the fees for these funds are much lower.

• index fund

• money market fund

• bond

• stock exchange

Pretend Paul's Pickles (a fake pickle company) divides their company into 10,000 shares of stock. If you buy 550 of those shares, what percent of Penny’s Pickles do you own?

• 5.5%

• 55%

• .05%

• .5%

What would be the market capitalization of Palumbo's Pickles be if each share is selling for $176.35 and 10,000 shares were outstanding

• $1,763,500

• $1,673,500

• $653,500

• $1,365,000

Ian bought 150 shares of Disney stock. Each share sold for $35.50. If no fees were involved, Ian paid $3,550 for the shares.

• True

• False

What type of stock would have voting rights?

• preferred stock

• common stock

• chicken stock

• stock stock