12th Grade Econ Stocks Test (Chapter 8)

One share of stock represents...

part ownership in a company

Common stock

the most basic form of ownership, including voting rights on major issues and the right to receive dividends, in a company

Why would a company issue stock

Expand business, develop new products, lower debt

Where is stock bought and sold

stock market

Stockbroker

a person who handles the transfer of stocks and bonds between buyer and seller; may provide advice to clients

Determines the price of stocks

supply and demand for the stock

Stock investors can profit from stocks from

Both dividends and growth

According to this stock chart, what company is being shown and what is the stock symbol?

Apple, Inc (AAPL)

What is the total value of this company if all shares were purchased?

$614.61 Billion

What is the dividend rate and the dividend yield for this stock?

2.28 (2.00%)

True or False: the more shares you own of a company the more you own of the company

True

True or False: The lower the dividend yield, the better return for the shareholder

False

True or False: In most cases, in order to buy or sell stocks you need to use a brokerage house

True

True or False: The advantage of a company selling common stock is that the company can raise money without going into debt

True

True or False: People's emotion, information, and rumors have a powerful influence on moving the price of a stock

True

Money that is paid by a company to its shareholders

Dividend

When you own a share or shares of a company

shareholder

Is a type of stock in which you don't get the right to vote but do receive dividends and have priority to dividends

preferred stock

Is licensed to buy and sell stocks and often has stockbrokers that assist clients in making stock trades

brokerage house