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.
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.
2.
Jim just bought 200 shares of Microsoft. He is now part owner of ______.
Choose wisely. There is only one correct answer.
All of the above. These are all examples of the companys assets. Stock ownership conveys equity in a companys assets.
3.
Volatile stocks always show a better return than the rest of the market.
Choose wisely. There is only one correct answer.
False. While volatile stocks show greater price fluctuations than the rest of the market, those fluctuations can be up or down.
4.
Common stock is less predictable than preferred stock.
Choose wisely. There is only one correct answer.
True. Since preferred stock pays a fixed premium, it is more predictable than common stock.
5.
Which of the following statements is true?
Choose wisely. There is only one correct answer.
Bonds pay fixed income; common stock doesnt. Bonds pay a fixed interest rate; stock values and dividends depend on the performance of the company.