Stock

Question 1

Represents a claim on the company’s assets and earnings. Foundation of many individual investor’s portfolio

Answer 1

Stock

Question 2

Security that represents ownership at a fraction of a corporation

Answer 2

Equity

Question 3

Shareholder’s rights

Answer 3

Right to vote
Receive Dividends
Sell shares to somebody else

Question 4

Unit of stock

Answer 4

Shares

Question 5

Classification of stocks

Answer 5

Common stock
Preferred stock

Question 6

Have the rights only after bondholders, preferred shareholders and other debt holders are paid in full

Answer 6

Common Shareholders

Question 7

Have the right to elect Board of Directors and Vote on corporate policies

Answer 7

Common Stock

Question 8

Does not usually carry voting rights

Answer 8

Preferred stock

Question 9

Senior to common shareholders and junior to bondholders

Answer 9

Preferred shareholders

Question 10

Right granted to the stockholders to have the first option to subscribe any issuance/disposition of shares from the capital stock in proportion to their respective shareholdings in the corporation

Answer 10

Pre-emptive rights

Question 11

Types of voting

Answer 11

Cumulative
Statutory

Question 12

Shareholder is entitled to one vote per share multiplied by the number of Directors to be elected. Known as proportional voting

Answer 12

Cumulative voting

Question 13

One vote per share and votes must be divided evenly among candidates or issues being voted on. Known as corporate voting

Answer 13

Statutory voting

Question 14

Types of Dividends

Answer 14

Cash dividends
Stock dividends
Property dividends

Question 15

Paid to shareholders in cash. Quoted in peso amounts/ percentage of the par value

Answer 15

Cash dividends

Question 16

Given additional shares of the company. Quoted as a percentage of the company’s outstanding share

Answer 16

Stock dividends

Question 17

In the form of assets (shares of another corporation)

Answer 17

Property dividends

Question 18

Formally declared by the Board of Directors

Answer 18

Declaration date

Question 19

Four dates to remember when dividends are declared

Answer 19

Declaration date
Ex-dividend date
Record Date
Payment Date

Question 20

2 working days prior to the date of record, buying stocks on or after this date will not receive dividend

Answer 20

Ex-dividend date

Question 21

Receive dividends on this date

Answer 21

Record date

Question 22

Dividend checks are mailed

Answer 22

Payment date

Question 23

Bid price

Answer 23

Purchasing price

Question 24

Offer price

Answer 24

Selling price

Question 25

The more stock price fluctuates, the more

Answer 25

Volatility

Question 26

Can help reduce risk

Answer 26

Stop-loss

Question 27

Advantages in investing stocks

Answer 27

Dividend income
Capital gains
Ownership