corporation
A public ____ issues stock that may be traded openly on the stock
dividends
When a company is profitable, the stockholders often receive a distribution of money called ___
board of directors
Common stockholders vote for members of the ______
stock split
A(n)______ is an increase in the number of outstanding shares of a stock
dividend investment
_______ means using dividends previously earned on stock to buy more shares
income
Stocks that pay high dividends over time are called ____ stocks
growth
Stocks in companies that reinvest profits, rather than pay dividends, are called ____ stocks
stock index
A(n)______ is a benchmark that stock investors use to judge investment performance
blue chip
Stocks of large, well-established companies are called ____ stocks
defensive
A(n)______ stock is one that remains stable during an economic decline
cyclical
_______ stocks do well in a good economy but poorly in a bad one
market
When you buy stock, you pay ____ value
earnings per share
A corporation's after-tax earnings divided by the number of common stock shares outstanding is ____
par value
The ___ is an assigned dollar value that is printed on a stock certificate
bull
A(n)______ market is characterized by rising stock prices and optimism
bear
A(n)______ market is characterized by the selling stocks and pessimism
securities exchange
A marketplace where brokers buy and sell securities is called a(n)_____
floor brokers
Stocks are brought and sold by_____
auction
Stock exchanges are ___ markets where buyers and sellers come together to buy and sell securities
buying on margin
Borrowing money to buy stock is called _____
f
Very few people (individuals) own stock in the United States
t
With preferred stock, dividends are fixed, regardless of how the company is doing
t
You can assign your stock voting rights to someone else by completing a proxy
t
The par value assigned to a stock has nothing to do with the stock's market value
f
Stock is purchased on a stock exchange at its par value
t
The securities market is where you buy and sell stocks and bonds
f
Brokers in the over-the-counter market only deal face-to-face with customers
t
Short selling involves selling borrowed stock
f
Buying on margin is an illegal activity
f
Dollar-cost averaging is a short-term investment strategy
c
The letter "s" next to a stock in the stock listing would mean
a. no stock sold
b. common stock
c. stock split
d
Which of the following are true?
a. you can buy and sell stocks online
b. most major stockbrokers have web sites that allow online transactions
c. you can use internet sites to follow stock prices
d. all of these are true
c
What represents the cost of dividends as a percentage of the current price?
a. P/E ratio
b. par value
c. yield
d. net change
c
What is the long-term technique where investors buy stock directly from a corporation?
a. dividend reinvestment
b. stock split
c. direct investment
d. buy and hold
a
What strategy lowers the selling price of a stock and encourages more stock purchasing?
a. stock split
b. dividend reinvestment
c. dollar-cost averaging
d. P/E analysis
a
Which of these strategies is a short-term technique?
a. buying on margin
b. buy and hold
c. dollar-cost averaging
d. direct investment
c
Which of these strategies is a long-term technique?
a. buying on margin
b. selling short
c. buy and hold
d. all of the above
c
Which of the following is the largest organized exchange in the United States?
a. the American Stock Exchange
b. the NASDAQ
c. the New York Stock Exchange
d. they are all the same size