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Stocks Beginner:
Introduction to Stocks
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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Review your answers below to learn more.
1.
Jim just bought 200 shares of Microsoft. He is now part owner of ______.
Choose wisely. There is only one correct answer.
All the software in the Microsoft warehouse
Bill Gates office
Microsofts manufacturing facilities
All of the above
All of the above. These are all examples of the companys assets. Stock ownership conveys equity in a companys assets.
2.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
Choose wisely. There is only one correct answer.
Discount
Deep-discount
Full-service
Deep-discount. The deep-discount broker limits his or her services to execution of trades.
3.
Volatile stocks always show a better return than the rest of the market.
Choose wisely. There is only one correct answer.
True
False
False. While volatile stocks show greater price fluctuations than the rest of the market, those fluctuations can be up or down.
4.
Which type of broker provides investment research and assistance with making investment decisions?
Choose wisely. There is only one correct answer.
Full-service
Deep-discount
Discount
All of the above
Full-service. In return for higher commissions, the broker offers investment advice and research.
5.
Common stock is less predictable than preferred stock.
Choose wisely. There is only one correct answer.
True
False
True. Since preferred stock pays a fixed premium, it is more predictable than common stock.
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