Financial Math: Getting and Understanding Stock Quotes

What does a stock quote normally include?

• Only the name of the company and the stock price

• The name of the company, the ticker symbol, the price, the day's high and low prices, and the trading volume

• The CEO's name and the company's yearly revenue

• The stock's price at the beginning of the trading day and the expected price at the end of the trading day

What is the most important thing to note about a stock quote according to the text?

• The company's overall performance

• The time-stamp that shows how old the stock quote is

• The number of employees in the company

• The future predictions of the stock's price

What information can be found at the top of the stock chart?

• The dividend rate and yield

• The basic quote

• The stock's performance over the last year

• The CEO's commentary on the stock's performance

What does the 'Day's Change' in a stock quote represent?

• The difference in the stock's price from the beginning of the year

• The change in the number of shares traded compared to the previous day

• How much the stock price changed in the last trading day

• The change in the stock's price since it was first listed

What does the 'Volume' in a stock quote indicate?

• The total value of the company

• How many shares of this stock were sold in the last year

• How many shares of this stock traded so far today, or the last trading day

• The number of investors interested in the stock

What is a dividend?

• A. A tax imposed on a company's profits

• B. A payment made by a company to its shareholders, usually as a distribution of profits

• C. A fee charged by a broker for executing a transaction

• D. The interest paid on a corporate bond

If Apple pays out $0.63 per share per quarter in dividends, what is the annual dividend payment?

• A. $1.26

• B. $2.52

• C. $3.78

• D. $5.04

What is the dividend yield of a stock?

• A. The total amount of dividends paid in a year

• B. The percentage of the stock's price that is paid out in dividends per year

• C. The ratio of dividends paid per share to the price of the bond

• D. The interest rate compared to the stock's earnings

What does the ex-div date signify?

• A. The date when the stock price is expected to fall

• B. The date when the dividend is paid to shareholders

• C. The date the last payment was based on and when you had to be a shareholder to receive the dividend

• D. The deadline for declaring dividends for the next quarter

What is the bid price of a stock?

• A. The price at which the stock is currently trading

• B. The highest price a buyer is willing to pay for the stock

• C. The lowest price a seller is willing to accept for the stock

• D. The average price of the stock over the last quarter