Stock Jobs Basics 2

Question 1

What does owning a share of common stock primarily represent?

Accepted Answer

A fractional ownership stake in the company

Answer

A loan to the company

Answer

A guaranteed fixed interest payment

Answer

A claim on company debt only

Question 2

What is a stock's 'market capitalization'?

Accepted Answer

Share price multiplied by total outstanding shares

Answer

Total revenue for the year

Answer

Total dividends paid annually

Answer

Book value of company assets

Question 3

Which order type executes immediately at the best available current price?

Accepted Answer

Market order

Answer

Limit order

Answer

Stop order

Answer

Trailing stop order

Question 4

What is a dividend?

Accepted Answer

A portion of company profits paid to shareholders

Answer

A fee charged by the broker

Answer

The difference between bid and ask

Answer

A penalty for selling early

Question 5

The 'bid' price in a stock quote represents what?

Accepted Answer

The highest price a buyer will pay

Answer

The lowest price a seller will accept

Answer

The last traded price

Answer

The opening price of the day

Question 6

What does the ticker symbol of a stock identify?

Accepted Answer

The unique abbreviation for a publicly traded company

Answer

The stock's sector

Answer

The dividend yield

Answer

The exchange's trading hours

Question 7

What is an IPO?

Accepted Answer

The first sale of a company's stock to the public

Answer

A type of dividend reinvestment

Answer

An internal profit order

Answer

A penalty fee for late trades