Finance and Stock Market Quiz

What is the primary function of a stock exchange?

• To provide loans to companies

• To facilitate the buying and selling of stocks

• To set interest rates

• To regulate company mergers

What is one key difference between public and private companies in the UK based on their names?

• Public companies have 'ltd' in their names.

• Private companies have 'plc' in their names.

• Public companies have 'plc' in their names.

• Private companies have 'limited' in their names.

Which type of company is allowed to issue shares to the public?

• Private companies

• Public companies

• Both private and public companies

• Neither private nor public companies

What is the relationship between listed companies and public companies?

• All public companies are listed on a stock exchange.

• All listed companies are public companies, but not all public companies are listed.

• All listed companies are private companies.

• No public companies are listed on a stock exchange.

How do shareholders share in the profits of the company?

• By receiving interest

• By receiving dividends

• By receiving bonuses

• By receiving salaries

How are preference shares classified in terms of security?

• Pure equity

• Pure debt

• Hybrid security

• Convertible bonds

What is another term used for preference shares?

• Convertible bonds

• Preferred stock

• Common stock

• Treasury bonds

What is the main characteristic of ordinary shares in terms of ownership?

• They represent a fixed income.

• They represent part of ownership in the organization.

• They guarantee repayment of capital.

• They have no voting rights.

Which type of shares have the desired rights related to repayment of capital?

• Ordinary shares.

• Preference shares.

• Both ordinary and preference shares.

• Neither ordinary nor preference shares.

What is the normal dividend per share for ABC preference shares?

• US$1

• US$2

• US$3

• US$4