Home > Mechanical Engineering > 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. A stock market characterized by ________ prices is termed a bear market.
2. Because the DJIA weights stocks based on their relative prices, when a high priced stock moves a small amount on the DJIA, it has a(n) ________ impact on the index.
3. The S&P 500
4. A SWOT analysis
5. Because the Dow Jones Index Average is based on the movement of 500 large, well-established stocks, many investors believe it reflects price movements for large firms rather than for the general market.
6. Compared to other investment options, we can safely say that investing in stocks
7. The P/E ratio approach is a type of fundamental analysis.
8. What point marks the purchase of common stock without a right to a declared dividend?
9. The Dow Jones Industrial Average is based on the movement of 500 stocks, primarily from the NYSE.
10. While you can't be assured of what you will get when you sell your stock, you will most likely not have difficulty selling it.
11. The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.
12. The dividend yield tells investors which of the following?
13. Microsoft is an example of a company whose common stock is considered to be a growth stock.
14. Both capital gains and dividends are guaranteed with common stock.
15. The net income of the firm is $4 million dollars- The firm will pay $500,000 in dividends to the preferred shareholders- There are currently 1 million shares of common stock outstanding- What are the earnings per share for this firm?
16. 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?
17. When you compare the returns on various investments over the period 1951-2010- Which of the following is shown to exceed the inflation rate by the widest margin?
18. If you are very optimistic about the ability of firms to earn profits today and in the immediate future, what type of investor philosophy do you exhibit?
19. Movement in the stock market indexes determines whether it is a bear or bull market.
20. The price/earnings ratio is an indication of how much investors are willing to pay for a dollar of the company's earnings.
21. For investors with a long time in front of them, market volatility is not of great concern today.
22. Which of the following investment options is not affected by a change in the market rates of interest?
23. Suppose that a company feels that the price of its stock is more than the average small investor can afford- To lower the price the company could engage in a
24. The book value of a company is calculated by
25. Which of the following makes common stocks more risky than corporate bonds when both are issued by the same company?

⚡ Recently practiced quizzes in this topic
Live quiz activity
Thermodynamics: First Law of Thermodynamics Manufacturing Engineering Practice Test: Metal Cutting - Mechanics of Cutting Mechanical Engineering Mechanical Engineering Practice Test: Refrigeration Mechanical Engineering Practice Test: Production Technology ME203 Final Exam - Materials and Materials Processing Mechanical Engineering Practice Questions Production Planning and Control: Introduction Design of Mechanical Systems Production Planning and Control: Scheduling And Sequencing
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.