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1.
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.
2.
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.
3.
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.
4.
A _______ broker helps customers make decisions on investments.
Choose wisely. There is only one correct answer.
Full-service. The full-service broker includes investment assistance in his or her range of services.
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.