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M and B 3,3rd Edition by Dean Croushore – Test Bank

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  • ISBN-10 ‏ : ‎ 1285167961
  • ISBN-13 ‏ : ‎ 978-1285167961

Original price was: $90.00.Current price is: $28.00.

SKU:tb1002310

M and B 3,3rd Edition by Dean Croushore – Test Bank

Chapter 07

  1. 1. Shareholders are also called a. bondholders.
    b. brokers.
    c. stockholders. d. debt-holders.ANSWER: c
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    2. Which of the following statements is true?
    a. Stockholders benefit when the price of the stocks they hold rises and lose when the price of the stocks they
    hold falls.
    b. Stockholders benefit when the price of the stocks they hold falls and lose when the price of the stocks they
    hold rises.
    c. Stockholders have the right to participate in the decision making of a company but are not entitled to dividend
    payments.
    d. Stockholders are entitled to dividend payments but do not have the right to participate in the decision making
    of a company.

    ANSWER: a
    POINTS: 1
    DIFFICULTY: Basic
    OTHER: Factual

    3. A place where people buy or sell stocks is known as a stock a. exchange.
    b. index. c. fund.
    d. holding.

    ANSWER: a
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    4. A stock index tells you
    a. the average price of a collection of stocks.
    b. the expected changes in the prices of select stocks over a year. c. where to buy or sell stocks.
    d. what stocks to buy or sell.

    ANSWER: a
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    5. Which of the following statements correctly identifies a difference between a stock exchange and a stock index?
    a. A stock exchange refers to a market where stocks of government-owned enterprises are traded, while a stock index refers to a market where the stocks of privately-owned enterprises are traded.
    b. A stock index refers to a market where stocks of government-owned enterprises are traded, while a stock exchange refers to a market where the stocks of privately-owned enterprises are traded.
    c. A stock exchange refers to a market where stocks are traded, while a stock index reflects the average price of a collection of stocks.
    d. A stock index refers to a market where stocks are traded, while a stock exchange reflects the average price of a collection of stocks.

    ANSWER: a
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    6. The S&P 500 stock index is an index of
    a. all the companies whose shares trade at a price more than $500.
    b. all the companies whose shares trade on the New York Stock Exchange. c. 500 major companies whose shares trade in U.S. markets.
    d. the largest 500 companies in the world.

    ANSWER: c
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    7. An index that measures the average stock prices of small firms in the United States is the a. Russell 2000 index.
    b. NYSE index.
    c. Dow Jones Industrial Average. d. S&P 500.

    ANSWER: a
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    8. An index of thirty major U.S. industrial companies is the a. NASDAQ index.
    b. NYSE index.
    c. Dow Jones Industrial Average. d. S&P 500.

    ANSWER: c
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    9. The Wilshire 5000 stock index is
    a. an index of the 2000 largest industrial companies whose shares trade in U.S. markets. b. an index of all the companies with U.S. headquarters whose shares trade in the U.S. c. an index of 5000 major companies whose shares trade in U.S. markets.
    d. an index of the average stock prices of many small firms operating in the U.S.

    ANSWER: b
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

    10. Which of the following statements is true?
    a. Different stock indexes normally show the same total returns. b. Stock indexes do not provide information on dividends.
    c. Mutual funds encourage investors to invest in the same security instead of diversifying. d. The S&P 500 is an example of a mutual fund.

    ANSWER: b
    POINTS: 1
    DIFFICULTY: Basic
    TOPICS: The Stock Market
    OTHER: Factual

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