1 What is involved in “going public”?

Offering goods and services to the public

Selling stock to the public in the primary market

Public speaking

Revealing corporate secrets to the public

2 Stock represents _________________.

ownership in a company

profits from a company

debt from a company

mutual fund holdings

3 If a company declares bankruptcy, common stockholders are _________________.

paid before preferred stockholders

paid before bondholders

usually the last to get paid

not at risk of losing any money

4 A _________________ market is one in which stock prices overall are rising.

bear

bull

depressed

fast

5 Stock values are determined by _________________.

the net worth of a business divided by shares outstanding

calculating the price/earnings ratio

the past performance of the company

what investors are willing to pay for the stock

6 Which of the following is not a stock index?

The DJIA

The Russell 2000

The S&P 500

The Buffet 10,000

7 A _________________ tells the broker to buy or sell stock at the current price.

market order

limit order

stop order

day order

8 A _________________ is a stock trade request that expires at the end of a trading day.

market order

limit order

stop order

day order