Deck 8: The Stock Market

Question 1

A candlestick chart is a type of stockbar chart.The real body is displayed in different colors to indicate the action for that day.What does it mean if the real body is red?

A) The stock closed higher than the opening price.
B) The stock closed at the opening price.
C) The stock opened higher than the closing price.
D) The stock closed lower than the opening price.

Answer 1

The stock closed lower than the opening price.

Question 2

Rebecca correctly calculated the 3-day SMA of these stock prices $11,$14,$13,$11,and $12 as $12.67,$12.67,and $12.00.

Answer 2

True

Question 3

A stock that was selling for $48 a share split 2-for-1.Before the split,the company had 3.4 million shares of stock outstanding.What is the post-split number of shares outstanding?

A) 10.2 million
B) 6.8 million
C) 2.4 million
D) 1.7 million

Answer 3

6.8 million

Question 4

Vito owned 120 shares of a stock before the corporation instituted a 5-for-3 split.Before the split,the stock was selling at $16 a share.Vito now has 200 shares of the stock that is worth about $26.67 each.

Question 5

Steve and Elizabeth decide to become partners in a children's cooking school.They need $80,000 for the franchise.They invest in a 3:4 ratio,respectively.About what percent of the business is owned by Elizabeth?

A) 34%
B) 43%
C) 57%
D) 80%

Question 6

In a reverse stock split,the number of outstanding shares is reduced while the market price per share stays the same.

Question 7

The stock bar chart below shows price and volume information for Medco Health Solutions (MHS)on January 12.What was the opening price? ​ ​

A) $40.92
B) $41.60
C) $41.14
D) $40.920

Question 8

Xavier bought 4,000 shares of XYZ stock at $17.37 per share.This price was down $1.12 from the previous day's closing price.The ticker for this transaction will appear as XYZ 4K@ 17.37 $\blacktriangle$ 1.12.

Question 9

Sunni bought a $500 corporate bond.The bond pays 4.8% interest per year.If Sunni holds the bond for 15 years,how much will Sunni receive in interest?

A) $480
B) $360
C) $140
D) $24

Question 10

Eleanor purchased $2,568 worth of stock and paid her broker a 0.5% fee.She sold the stock when the stock price increased to $3,298 using an online broker that charged $7 per trade.What are her net proceeds?

A) $710.16
B) $735.84
C) $755.68
D) $851.40

Question 11

When there is a fractional part of a share,the company will buy the fractional share at current prices,because fractional shares are not traded.

Question 12

Leon purchased 8,500 shares of stock at a price of $11.45 a share.He sold the stock 6 years later at a price of $19.78 per share.His capital gain is about 58%.

Question 13

One share of Kimco's common stock pays an annual dividend of $1.43.Today,Kimco closed at $19.09 with a net change of +0.72.The stock yield at yesterday's closing price is about 8%.

Question 14

What is the 4-day SMA for the following closing prices: $56,$61,$50,$57,$60,$58,and $57.

A) $56,$61,$50,$57
B) $56,$57,$56.25
C) $56,$57,$56.25,$58
D) $58,$56,$56.25,$57

Question 15

Comanche Ltd closed at $15.89,a $0.43 decrease from the closing price the day before.This is a 2.6% decrease.

Question 16

Which is NOT personally liable for any losses or damages?

A) Owner of a sole proprietorship
B) Shareholders in a pubic corporation
C) Partners in a partnership
D) Shareholders in a corporation

Question 17

A crossover occurs when one moving average crosses over another.Investors should consider buying if a fast-moving average crosses over a slow-moving average and should consider selling if a fast-moving average crosses below a slow-moving average.

Question 18

Marcy owns common stock in Rex's Pet Planet.The annual dividend is $2.05.The current price is $5.37.What is the yield of the stock?

A) 31.7%
B) 33.2%
C) 38.2%
D) 53.7%

Question 19

Roxanne placed a limit order.This means she specified the price that she would pay for a stock.If the stock does not fall to that price,then the stocks are not purchased.

Question 20

On July 3,the ABC Corporation closed at $43.67.This was a $0.47 increase from the close the day before.What percent change is this?

A) +98.91%
B) -1.09%
C) +1.09%
D) -1.07%

Question 21

A certain corporation listed its sales in 100s as 1,700.What was their actual volume in thousands?

Question 22

Justin owned 1,500 shares of Schwinn Corporation and received a quarterly dividend check for $618.75.What was the annual dividend for one share of Schwinn?

Question 23

Three friends are starting a new exercise equipment franchise.Their investments are in the ratio of 5:7:11.The smallest investor is contributing $75,000.What is the largest investor contributing?

Question 24

Mason purchased Texas Instruments for $45.23 per share and plans to sell the shares when the stock price rises 25%.If Texas Instruments is currently selling for $52.00,what percent increase does Mason need to issue the sell order?

Question 25

At the end of the trading day on June 5,Traders,Inc.announced that its CEO had a heart attack.This news caused the stock to drop to $48.62,a drop 6.75%.If Steve had 1,000 shares of Traders,Inc. ,in his portfolio,what was the value of his portfolio before the announcement?

Question 26

The information released on a particular corporation at closing shows a chg of -2.35.What does this mean?

Question 27

Mrs.Thomas owns 1,500 shares of a corporation that pays a quarterly dividend of $0.36 a share.How much in dividends did she receive last year?

Question 28

Three friends are starting a food truck and are contributing a total of $140,000 to begin operations.Their investments are in the ratio of 3:4:7.What is the difference in investment between the smallest investor and the largest investor?

Question 29

The stock bar chart shows the market action for Dell during the week of May 4.What was the day's close on May 8?
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Question 30

Of the shareholders in a service corporation,56% are women.If 72,820 shareholders are men,how many shareholders are women?

Question 31

Katelyn owns 140 shares of a stock that sells for $39 a share before a 3-for-2 split is announced.After the split,how many shares of the stock will Katelyn own and what will they be worth?

Question 32

What does the ticker P&G 3M@ 77.85 $\blacktriangle$ 0.13 mean?

Question 33

Jill owns 900 shares of a corporation that pays an annual dividend of $1.82 per share.How much should she expect to receive on a quarterly dividend check?

Question 34

ABC Company has declared dividends totaling $475,000.There are 38,000 shares of preferred stock that earn dividends of $2.50 per share.If there are 240,000 shares of common stock,how much per share does a common stockholder receive?

Question 35

McKenzie buys 250 shares of stock for $12 a share and pays a 2% commission.She sells the stock 3 years later for $18 a share and pays a 1% commission.What are her net proceeds?

Question 36

This information was posted at the end of the trading day on June 12. What was the closing price of CAT Ltd on June 11?

Question 37

Chantel purchased $292,565.00 worth of stock and paid her broker a 1% broker fee.She sold the stock when it increased to $436,527.00 three years later and used a discount broker that charged $140 per trade.Determine Chantel's net proceeds after all broker fees were paid.

Question 38

Quinton bought x number of shares for p dollars and paid a 1% commission.He sold the stock for y dollars and paid a flat fee of $7.Express Quinton's net proceeds algebraically.

Question 39

Yesterday's dividend yield at Hewlett Packard was 1.49%.If HP's annual dividend is $0.44 and its closing stock price today was up 7.25%,what is Hewlett Packard's dividend yield today?

Question 40

Renee made a spreadsheet to calculate the 5-day SMA for the stocks in her portfolio.What formula should Renee put into C7?
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