Stocks & Bonds

What will buying preferred stock result in?

• A) A one-time payment

• B) A stated dividend each year

• C) A variable dividend based on company profits

• D) No financial return

Do companies pay dividends on common stock?

• A) Yes, many companies do

• B) No, companies never pay dividends on common stock

• C) Only during financial crises

• D) Only if the stock value increases

Do preferred stocks typically come with guaranteed paid dividends?

• Yes

• No

• Only during a financial crisis

• Only if the company is profitable

Do common stocks usually provide voting rights to their shareholders?

• Yes

• No

• Only for major decisions

• Only if the shareholder owns a certain percentage of the company

If you bought stock for $400 and sold it for $1000, what would be the amount of capital gain?

• $400

• $600

• $1000

• $1400

If you buy stock for $20 per share and then sell it for $2 per share, what is the amount of capital loss?

• $2 per share

• $18 per share

• $20 per share

• $22 per share

Who is licensed to handle sales between buyers and sellers of stock?

• A) A stock owner

• B) A stockbroker

• C) A salesperson

• D) A stock analyst

In what units are stocks usually bought or sold?

• A) Units of 10 shares or more

• B) Units of 50 shares or more

• C) Units of 100 shares or more

• D) Units of 1000 shares or more

What does NYSE stand for?

• National Youth Stock Exchange

• New York Securities Exchange

• New York Stock Exchange

• National Yield Stock Exchange

What does AMEX stand for?

• American Market Exchange

• American Money Exchange

• American Stock Exchange

• Atlantic Merchant Exchange