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Exam 14: Investing in Stocks

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Question 41

Multiple Choice

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Which of the following is an electronic marketplace for buying and selling global stocks and securities?

A) New York Stock Exchange
B) Over-the-counter market
C) NASDAQ
D) Tokyo foreign securities exchange
E) London foreign securities exchange

F) A) and D)
G) B) and E)

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Question 42

Multiple Choice

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Becky Martinez paid $65 a share for stock in GBX Corporation.The stock has a current market value of $24 a share and pays $0.80 a year in dividends per share.What is the dividend yield rounded to the nearest tenth of a percent?

A) 2.5 percent
B) 7.4 percent
C) 3.3 percent
D) 30.0 percent
E) 40.0 percent

F) B) and E)
G) B) and D)

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Question 43

Multiple Choice

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An investment theory based on the assumption that stock price movements are purely random is called the ________ theory.

Regardless of a stock's classification,a stock is a(n) ________ investment because there are no guarantees.

Which of the following uses algorithm-driven software to make investment suggestions that will match the investor's profile?

A low market-to-book ratio could indicate that a stock is undervalued.

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n) ________ stock.

A safe investment that generally attracts conservative investors is called a ________ stock.

The most common stock split is:

Equity financing is a preferred choice to provide financing for a corporation because:

Approximately ________ percent of earnings are distributed to stockholders as dividends by most corporations.

The record date is the date that the actual dividend payment is made to stockholders.

A stock that pays higher-than-average dividends is called an income stock.

If a stock has a 2-for-1 split:

An order to sell a particular stock at the next available opportunity after the market price of the stock reaches a specified price is called a ________ order.

By using the internet,it is possible to find market price quotations,but more detailed financial information about a corporation is unavailable to the average investor.

Stock owners who believe the price of their stock will go down during an option period will purchase a:

A large cap stock is a stock issued by a corporation that has capitalization of more than $10 billion.

Orlando Blodgett is buying stock in the Getaway Caribbean Cruise Company today.He had thought about buying the stock yesterday and if he had,he would have received this quarter's dividend.However,since he waited until today,he will not receive that dividend payment.Given this information,which one of the following dates applies to this stock today?

ABC Corporation has assets that total $24 million and liabilities that total $8 million.It also has 1,000,000 shares of stock outstanding.What is the ABC's book value per share?