Stocks Beginner: Introduction to Stocks

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The best way to make a lot of money quickly is to buy and sell blue chip stocks.
Choose wisely. There is only one correct answer.
False. Blue chip stocks have low volatility, so any growth in value is likely to be slow.
2.
Which of the following pays a fixed dividend?
Choose wisely. There is only one correct answer.
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.
Which type of broker provides investment research and assistance with making investment decisions?
Choose wisely. There is only one correct answer.
Full-service. In return for higher commissions, the broker offers investment advice and research.
4.
Corporate stock represents _______.
Choose wisely. There is only one correct answer.
Net assets. Stock represents a share of ownership in a companys assets.
5.
Common stock and preferred stock both convey the same kind of equity rights.
Choose wisely. There is only one correct answer.
False. Owners of preferred stock have prior claim to the companys assets over owners of common stock.