Stocks Beginner: Introduction to Stocks

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1.
Jim just bought 200 shares of Microsoft. He is now part owner of ______.
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All of the above. These are all examples of the companys assets. Stock ownership conveys equity in a companys assets.
2.
Which of the following pays a fixed dividend?
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Preferred stock. Preferred stock pays a fixed dividend, as opposed to common stock, for which the dividend (if any) is set by the companys board of directors from time to time.
3.
The best way to make a lot of money quickly is to buy and sell blue chip stocks.
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False. Blue chip stocks have low volatility, so any growth in value is likely to be slow.
4.
A customer who wants nothing more than execution of trades from his or her broker will want a _______ broker.
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Deep-discount. The deep-discount broker limits his or her services to execution of trades.
5.
A _______ broker helps customers make decisions on investments.
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Full-service. The full-service broker includes investment assistance in his or her range of services.