TCNH

Share of profit, if distributed by management in cash is called as:

• Bonus

• Rights

• Dividend

IPO stands for:

• Initial Public Offering

• Initial Primary Offering

• Imminent Profitable Option

• Itemized Public Organization

The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important?

• It tells Americans how much debt the country is in.

• It helps economists predict when a stock market crash will happen.

• It tells Americans how many jobs are out there.

• It provides a snapshot of how the stock market and the US economy are doing.

The current price of one share of stock is called:

• Ask

• Bid

• Last

• Open

People who own stocks are guaranteed a return on the money they have invested in stocks.

• True

• False

The two major stock exchanges are

• NASDAQ & NYSE

• Dow Jones Industrial Average & S&P 500

• NASDAQ & DJIA

• NYSE & American

Which of the following is NOT a stock index?

• DOW JONES

  S & P 500

• NASDAQ

• COMPOSITE

• P/E RATIO

Which of the following best describes diversification?

• Avoiding risk by investing in blue-chip stocks

• putting all your investments in two financial investments

• investing in different types of bonds

• reducing risk by investing in different types of securities

Which is not the advantages of ECNs ( Electronic Communications Networks)

• All unfilled orders are available for review by ECN traders.

• Many ECNs competing for volume, which can be confusing

• Since ECNs are fully automated, trades are matched and confirmed faster.

• Transaction costs can be lower because the middle man and the commission are cut out of the deal

Which is not the features of OTC market?

• Market makers are compensated by the spread between the bid price and ask price

• Market makers ensure there is continuous liquidity for every stock

• Floor specialists are responsible for maintaining an orderly market in the stock

• Trade on electronic network