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Investing in Stocks
Multiple Choice

1 .       A company’s assets minus its liabilities divided by the number of shares of outstanding stock is called:  

2 .       DEF Company has profits of $2,000,000, with 1,000,000 shares of outstanding common stock, a recent share price of $40, and it pays a dividend of $1. The P/E ratio is:  

3 .       The stock index that charts 30 blue chip stocks is the:  

4 .       A stock that does not drop or rise as much as the market is called a:  

5 .       A utility stock has a dividend yield of 6%. This is an example of:  

6 .       Ford Motor Company is an example of a:  

7 .       Determining the value of a share of stock by focusing on future earnings, dividends, etc. is:  

8 .       The strategy of investing amounts each month in stocks is called:  

9 .       You own Exxon stock and you do not receive your dividends, but instead, you buy more Exxon stock with the dividends. This is an example of which investment strategy?  

10 .       Beta measures a stock’s:  

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