Financial Aid/Student Loan Quizzes

The Dow Jones Industrial Average is:

(a) The average price of all of the United States stocks (b) A stock market index consisting of 30 of the largest and most widely held U.S. stocks (c) An average used to track the pattern of interest rates (d) An average covering 5000 of the largest stocks in the world

Which of the following companies is not included in the Dow Jones Industrial Average?

(a) Alcoa (b) Caterpillar (c) Microsoft (d) Google

Preferred Stock has the following rights:

(a) Preference over common stock in liquidation (b) Automatic quarterly dividends (c) Interest payment (d) Mandatory redemption rights no later than 5 years after issuance

What is the name of the investing strategy that emphasizes investing in different types of assets to reduce the risk potential?

(a) Short selling (b) Diversification (c) Put and call investing (d) Buying on margin

What is the feature called that is contained in some bonds providing that the bonds may not be redeemed or called for some period of time?

(a) Anti-dilution protection (b) Anti-redemption protection (c) Call protection (d) Put rights

"EPS" refer to:

(a) The volatility of a stock price (b) Earnings per share (c) The high watermark for a stock in the prior 52 weeks (d) Early penalty situation

The SEC form that provides annual information on a publicly held company is:

(a) Form 10-Q (b) Form 10-K (c) Form 8-K (d) Form 5

What is a growth stock?

(a) A stock that is growing at least 50% per year. (b) A stock in a company with cash flows or earnings that appreciate (or are expected to appreciate) quickly relative to the overall economy (c) A stock with low risk (d) A stock that can be purchased on a margin

A "hold recommendation" is:

(a) A recommendation by the SEC to hold stock for the long term (b) An IRS recommendation to sell stock to pay taxes (c) A stock analyst recommendation to hold onto a stock owned but should not be further purchased (d) A recommendation to sell a security

What year was the New York Stock Exchange created?

(a) 1791 (b) 1862 (c) 1789 (d) 1781

A "stock buyback" refers to:

(a) A trader purchasing stock that he has previously shorted (b) The purchase of a company's owns shares in the open market (c) The exercise of a redemption right by a preferred stock holder (d) The purchase of stock to increase the outstanding number of shares

"In the money options" refer to:

(a) Call options pegged to currency fluctuations (b) Put options based on financial futures (c) Options purchased on margin (d) Options where the market price of the underlying security is higher than the exercise price

"ROI" refers to:

(a) Relative option interests (b) Return on investment (c) Right of option investing (d) Return of interest

A stock split:

(a) Automatically increases the value of the stock (b) Increases or decreases the number of shares outstanding (c) Gives shareholders additional rights to dividends (d) Only occurs in public companies

Transfer agents maintain records of securities issued and sock certificates issued. True or false?

(a) True (b) False

The owners of an LLC are referred to as:

(a) Members (b) Stockholders (c) Partners (d) Limited Partners

What investment strategy can reduce an investor's risk on an investment?

(a) Hedging (b) Buying on margin (c) Buying on a down tick (d) Collateralizing the investment

The NYSE Composite Index tracks:

(a) 30 blue chip stocks (b) All of the common stocks on the NYSE (c) The industrial and technology stocks on the NYSE (d) All of the common and preferred stock on the NYSE

A "listed option" is:

(a) A futures option that can be bought on margin (b) A put or call option that is traded on a national options exchange (c) An option guaranteed by the Chicago Board of Options Exchange (d) A tax benefited incentive stock option

"AMEX" stands for:

(a) American Express (b) American Exchange Traded Funds (c) American Stock Exchange (d) Amsterdam Stock Exchange

A "penny stock":

(a) Is typically a safe investment (b) Usually trades on the American Stock Exchange (c) Sells for less than $1 per share (d) Is stock in an offshore corporation

DRIPs are:

(a) Debt Reduction Incentivization Programs (b) Dividend Reinvestment Plans (c) Deductible Revenue Income Programs (d) Debt Revenue Income Products

The underwriters' right to buy up to an additional 15% of shares in a public offering to meet overallotments of subscriptions for the offering is called:

(a) Greenshoe option (b) Call option (c) Oversubscription option (d) Success option

The main index for the Tokyo stock exchange is:

(a) The Yang Sen (b) Nikkei (c) Bourse (d) TK Exchange

A trading order for less than 100 shares of stock is referred to as:

(a) Unbalanced order (b) Odd lot (c) ETF (d) Options contract

A "Cusip Number" is:

(a) The number set forth in bearer bonds (b) The number set forth in convertible debentures (c) The nine character number that uniquely identifies a particular security (d) The equivalent of a Social Security number for corporations

The SEC defines a sophisticated investor who meets certain qualifications in connection with private placements as an:

(a) Institutional investor (b) Accredited investor (c) Qualified investor (d) Tax exempt investor

An annuity provides:

(a) Payments pegged to stock market performance (b) Payments pegged to the bond market performance (c) Regular payments to an investor

Section 1031

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