Chapter 9 – Study Guide

Chapter 9 – Study Guide
1.A legal form that asks stockholders to transfer their voting rights is called a(n) ______________________.
2.Preferred stock offers investors all the following advantages EXCEPT ____________________________.
3.A participation feature provides preferred stockholders with __________________________________.
4.Financial professionals consider shares in AT&T __________________________________.
5.Stock that has steady earnings and continues paying dividends even during economic declines is known as
6.An example of a financial magazine that provides information about specific companies is _______________________.
7.What is the formula for calculating the total return on a stock? ____________________________________________.
8.Most over-the-counter stock is traded through __________________________________.
9.A stop order requests that a stockbroker __________________________________.
10.An example of a short-term investment strategy is __________________________________.
11. ________________________________ is the annual dividend paid by an investment divided by the investment’s
current market value expressed as a percentage.
12. ______________________________ is a network of dealers who buy and sell the stocks of corporations that are not
listed on a securities exchange.
13. A(n) ______________________________ sells its shares openly in stock markets where anyone can buy them.
14. ______________________________ pays higher-than-average dividends compared to other stock issues.
15. ______________________________ is a request to buy or sell the stock at the current market value.
16.______________________________ is a market in which an investor purchases securities from a corporation through
an investment bank or some other representative of the corporation.
17. A(n) ______________________________’s shares are owned by a relatively small group of people and are not traded
openly in stock markets.
18. A(n)______ ________________________ remains stable during periods of decline in the economy.
19. ______________________________ is the total amount of stocks and bonds issued by a corporation.
20. ______________________________ is a calculation that includes the annual dividend as well as any increase or
decrease in the original purchase price of the investment.