1 What is involved in "going public"?
Offering goods and services to the public
Selling stock to the public in the primary market
Public speaking
Revealing corporate secrets to the public
2 Stock represents _________________.
ownership in a company
profits from a company
debt from a company
mutual fund holdings
3 If a company declares bankruptcy, common stockholders are _________________.
paid before preferred stockholders
paid before bondholders
usually the last to get paid
not at risk of losing any money
4 A _________________ market is one in which stock prices overall are rising.
bear
bull
depressed
fast
5 Stock values are determined by _________________.
the net worth of a business divided by shares outstanding
calculating the price/earnings ratio
the past performance of the company
what investors are willing to pay for the stock
6 Which of the following is not a stock index?
The DJIA
The Russell 2000
The S&P 500
The Buffet 10,000
7 A _________________ tells the broker to buy or sell stock at the current price.
market order
limit order
stop order
day order
8 A _________________ is a stock trade request that expires at the end of a trading day.
market order
limit order
stop order
day order
1.Going Public means Selling stock to the public in the primary market
2. Stock Represents ownership in a company
3. If a company declares bankruptcy, common stockholders are
usually the last to get paid
Explanation: The debt holders are paid first, followed by preferred stock and common stockholders are last to get paid from whatever remains after all payments
4. A BULL market is one in which stock prices overall are rising
Rising trend is known as Bullish Market
5. Stock values are determined by the net worth of a business divided by shares outstanding
6. The Buffet 10,000 is not a Stock Index
7. A market order tells the broker to buy or sell stock at the current price
8. A Day Order is a stock trade request that expires at the end of a trading day.
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