Home > General Studies (Hindi) > Quizzes > Personal Finance: Investing in Stocks
Personal Finance: Investing in Stocks
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 35% Most missed: “Proctor and Gamble is an example of a blue-chip stock.”

What is a a stock?

A stock represents an ownership stake in a company as a common shareholder.

Common stocks allow shareholders to vote on company issues, with most companies granting one vote per share.

Some companies also offer stockholders dividend payouts, giving investors a stream of income on top of the market value of the stock.
 

Personal Finance: Investing in Stocks
Time left 00:00
25 Questions

1. Dividends are paid regardless if the company makes a profit.
2. Deborah recently purchased a stock that is considerably more risky than a typical stock- It has exhibited a high degree of earnings variability- This is an example of a(n) ________ stock.
3. As a shareholder in Titanic Shipping, Inc., James Blue is one of the many actual owners- In case of the bankruptcy of the corporation, his liability would be limited to
4. The ________ is the date on which the board of directors announces the amount of the dividend.
5. The ________ date is the date the stock begins trading without dividend, meaning that if you buy it after this date you will not get the dividend for that year.
6. The P/E ratio approach is a type of fundamental analysis.
7. If you were to purchase common stocks issued by large, nationally known companies with sound financial histories with solid dividend and growth records you would own what are called
8. You are looking at the stock quotes in your newspaper and you see that your stock closed up 5% yesterday- Where would you look to see how it has been doing over the last year?
9. The Dow Jones Industrial Average has been an index since what year?
10. The dividend yield on a share of common stock is
11. Which of the following investment options is not affected by a change in the market rates of interest?
12. Berkshire Hathaway's 'A' stock has never split- As a result, in mid-2014 one share of its stock was selling at a price of more than ________ per share.
13. If your portfolio is very diversified then the beta is of no use to you.
14. The Dow Jones Industrial Average is based on the movement of 500 stocks, primarily from the NYSE.
15. Most of the stocks listed in the Dow Jones Industrials have high P/E ratios and are classified as speculative stocks.
16. Compared to other investment options, we can safely say that investing in stocks
17. The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.
18. For an investor who is retired, which category of stocks would be more appropriate for a portion of their portfolio?
19. Which stock index will have the largest representation of small-, mid- and large -cap stocks?
20. Your investment goal is to receive a stream of income from your investment- Which of the following would be important information to determine whether a particular stock purchase would suit your plan?
21. When all stocks move in the same direction, diversification among stocks works just as well as ever.
22. Common stockholders are entitled to elect the company's board of directors- Usually one share of stock is equal to ________ vote(s).
23. The dividend yield tells investors which of the following?
24. Microsoft is an example of a company whose common stock is considered to be a growth stock.
25. According to your text, there is very little validation in using technical analysis as an investing tool.