Chapter 17 Flashcards
A company whose stock is traded openly on the stock markets
Public corporation
When a corporation is profitable the stockholders receive a distribution of money from the company’s earnings called what?
Dividends
Represents a type of stock that pays and gives the holder voting rights
Common stock
Is an increase in the number of outstanding shares of the company’s stock
Stock split
Is the use of dividends previously earned on stock to buy more shares
Dividend reinvestment
Stocks that have a history of constantly paying high dividends are called blank stocks
Income stocks
Stocks in corporation that reinvest profits into the business so that it can grow are called blank
Growth stocks
Is a benchmark that stock investment performance
Stock index
Stocks of large well established corporations are called blank stocks
Blue chip stocks
Stocks that remain stable during economic decline
Defensive stock
Someone who buys and sells stock within a short period of time
Speculator
Is an assigned dollar value given to each share of stock
Par value
Is the price for which the stock is bought and sold in the marketplace
Market value
A corporations after-tax earnings divided by the number of common stock shares outstanding is
Earnings per-share or eps
Market that is characterized by rising stock prices and investor optimism
Bull market
Is a market that is characterized by falling stock prices and investor pessimism
Bear market
A marketplace for brokers buy and sell securities it is called a blank
Securities exchange
Playing by and sell stocks on the trading floor of the securities exchange
Floor brokers
And abbreviate stock name used in stock listings is known as the stocks…
Ticker symbol
Borrowing money to buy stock is called what
Buying on margin or leverage
Why is preferred less risky
Because it is fixed
Is it true that very few people in the United States own stock
False
Is it true or false that with preferred stock dividends are fixed regardless of how the company is doing
True
Is it true or false that you can assign your start voting rights to someone else by completing a proxy
True
Is it true or false at the par value assigned to a stock has nothing to do with the stock market value
True
Is it true or false that the NASDAQ is a form of auction market
False
Is it true or false that the security buy and sell stocks and bonds
True
True or false that brokers in the over the counter market do you face to face with other brokers
False
Is it true or false shortselling involve selling borrowed stock
True
Is it’s true or false buying on margin is an illegal activity
False
Is it’s true or false that dollar cost averaging is a short term investment strategy
False Bc it’s long term
