1 What is involved in “going public”?
Offering goods and services to the public
Selling stock to the public in the primary market
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.
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 Russell 2000
The S&P 500
The Buffet 10,000
7 A _________________ tells the broker to buy or sell stock at the current price.
8 A _________________ is a stock trade request that expires at the end of a trading day.