11.1 review

Question 1

securities

Answer 1

all investments

Question 2

Private corporation

Answer 2

Which corporation is owned by a single person or a small group

Question 3

public corporation

Answer 3

Sells its shares openly in stock markets.

Question 4

which corporation does not have to report to the SEC?

Answer 4

private corp

Question 5

participation feature

Answer 5

Preferred stock feature where after all preferred and common dividends are paid, I would receive more

Question 6

when I end up with less ownership in a company?

Answer 6

reverse stock split

Question 7

all investments that are found in a marketplace

Answer 7

securities

Question 8

a preferred stock feature where all dividends add up and must be paid back first when a company restarts issuing dividends

Answer 8

cumulative

Question 9

preferred stock feature where i can flex my stock from preferred to common

Answer 9

convertible

Question 10

which type of stock has the qualities of a fixed income investment?

Answer 10

preferred stock

Question 11

the term for a company that is owned by another company

Answer 11

subsidiary

Question 12

company that owns another company

Answer 12

parent

Question 13

considered a middle investment

Answer 13

preferred stock

Question 14

what type of stock would be considered a growth investment

Answer 14

common stock

Question 15

3 ways to make money from sock

Answer 15

dividends, appreciation, stock split with increase in value

Question 16

why would a company want to split stock?

Answer 16

in order to increase the number of investors interested in purchasing the stock

Question 17

why would you want to invest in a company whose stock splits?

Answer 17

because the company is using money to fund growth, and the price of the stock has already been high and could/should return

Question 18

what is the difference between market value and par value?

Answer 18

par value does not change, market value fluctuates based on the markets

Question 19

why do investors chose to buy and sell stocks?

Answer 19

because they would like a greater return then they get from conservative investments/savings.

Question 20

how many votes would a share holder who owns 10,000 shares get?

Answer 20

10,000

Question 21

when your amount of ownership in a company increases

Answer 21

stock split

Question 22

the term for the amount of outstanding shares x the price per share

Answer 22

market capitilization

Question 23

Which corporation is owned by shareholders

Answer 23

Public Corporation

Question 24

Which type of stock has first claim to assets in the case of bankruptcy

Answer 24

Preferred stock

Question 25

What event occurs that will encourages more investors

Answer 25

Stock split

Question 26

Lowers price per share

Answer 26

lowers price per share

Question 27

Increases price per share

Answer 27

Reverse stock split

Question 28

What is used to inflate the image of a company’s value

Answer 28

Reverse stock split

Question 29

Conservative stock investment

Answer 29

preferred stock

Question 30

Which feature is the rarest for preferred stock?

Answer 30

participation

Question 31

Besides cash, name two other types of dividends you could receive?

Answer 31

Company stock or company products

Question 32

How is the dollar amound of a dividend calculated?

Answer 32

Par Value times the dividend rate

Question 33

What are five items bought and sold on the stock market?

Answer 33

Stocks, Bonds, Mutual Funds, Options, and Commodities

Question 34

What can make the price of a stock go up or down?

Answer 34

News on expected sales revenue, earnings, or mergers

Question 35

In a 4:1 stock split, if you owned 100 shares of stock at $100 how many shares would you now own? What would the price now be per dh

Answer 35

400 shares at $25