Companies Pepsico is a ____________ company that sells __________ like chips, soft drinks, and juices. a. parent, products b. brand, subsidiaries c. small, stock If a company is a subsidiary, it: a. belongs to a larger company b. is new to the stock market c. doesn’t have shareholders Doritos, M&Ms and Mountain Dew are examples of: a. companies b. brands c. stocks Profit equals _________ minus __________. a. revenue, expenses b. expenses, revenues c. revenue, investments. Public Ownership _________ are issued by corporations and by governments to raise funds. a. stocks b. bonds c. earnings Corporations can be private or publicly-owned. a.True b. False Not all companies publicly trade stock. a. True b. False When a company “goes public”, what does it do? a. issues stock for investors b. invites shareholders to vote c. receives money from the government Publicly held companies may issue stock to raise money to expand their business. a. True b. False Shareholders in a for-profit corporation are liable for the debts of the corporation. a. True b. False Stocks The letters that identify a stock for investors is called the a. nickname. b. ticker symbol. c. abbreviation. The ____________ for Kellogg is K. a. company abbreviation b. ticker symbol c. mutual fund symbol In a stock quote, volume means: a. number of dividends paid b. total number of shares traded c. how many shareholders own the stock You can look in today’s newspaper to see today’s closing price of a stock. a) true b) false You can find Tuesday’s stock closing price for Hershey in Wednesday’s newspaper. a. True b. False The NYSE, AMEX and NASDAQ are: a. technology stocks b. stock exchanges c. mutual funds Investing Why are investments riskier than savings? a. companies don’t care about you b. it is not your money c. there are more unknowns When you buy a share of stock in a public company, you become a _________________ of the company. a. borrower b. customer c. part-owner When you invest in a bond, you are a) owning a government business b) loaning money to a company c) borrowing money for stock purchases A_____________investor is one who likes to take risks. a. conservative b. moderate c. speculative In general, the _____ risk you are willing to take, the __________ the possible return on your investments. a. less, less b. less, greater c. more, less Gains/Losses The chance of losing all or part of your investment is called: a. risk b. margin c. option Stock prices fall because: a. companies don’t make profits everyday b. there are more sellers than buyers c. dividends are paid Patrick bought 10 shares of stock in Mattel Corporation for $12.00 per share. Two years later he sold the 10 shares for $15.00 per share. Patrick had a ________. a. profit b. loss c. debt If you bought 200 shares of YUMMY at $45 per share and sold YUMMY for $48 per share, how much money did you make? a. $460 b. $300 c. $600 The Board of Directors of ABC Company voted to share some of the profits with its shareholders. They have decided to issue a) dividends b) bonds c) bonuses Gains/Losses Dividends can be paid out to investors in the form of a. stock b. cash c. stock or cash All stocks must pay dividends. a. True b. False Dividends are paid to shareholders from a) contributions from company employees b) part of the company’s earnings c) company’s production of goods and services. Mary’s mother owns KLA stock. She currently receives a dividend payment every quarter. She is guaranteed to receive a dividend every quarter as long as she owns KLA stock. a. True b. False You love M&Ms! You bought 210 shares of Mars Company at $24 to add to your portfolio. While eating away, you earned a dividend of .75 a share. Later you decide you are getting fat and you sell your Mars stock for $32 a share. How did your candy addiction affect you investment? a. you made $6,877.50 profit b. you lost $1,522.50 c. you made $1837.50 profit 52 week High low stock div P/E 84.00 36.50 192.20 31.50 16.40 128.60 Intel Pzza Ford 2.40 .45 __ 24 38 18 Vol 100s 194500 45000 230000 Hi Low Close 81.64 26.30 134.70 79.60 26.00 130.10 81.50 26.15 130.90 Chang e 1.50 .25 3.65 How many shares of Pzza stock were traded?_____ a) 4,500,000 b) 45,000 c) 450 Which stock closed closest to its low of the year?__________ a) Pzza b) Ford c) Intel If you bought 100 shares of Intel at its high price for the year, and sold it at its closing price, what would be your capital gain or loss?______ a) $14.00 loss b) $250 loss c) $8,150 gain Which stock pays the highest dividend?__________ a) Intel b) Pzza c) Ford Which stock’s closing price showed the least change in price from the previous day? a) Intel b) Pzza c) Ford 52 week High low stock ticker Vol 100s Hi Low Close Change 44.00 21.50 Hasbro HAS 101500 41.64 40.00 40.20 2.50 36.50 14.00 Kellogg K 25000 26.30 24.40 26.20 .35 60.00 32.10 Ford F 130000 54.70 51.50 51.55 2.65 When the stock market closed, Kellogg’s closing price was ________ a. $14.00 b. $.35 c. $26.20 Hasbro’s highest price for the last 52 weeks was ______ a share. a. $41.64 b. $44.00 c. $40.20 The total number of shares of Ford stock traded was a. 130,000. b. 1,300,000. c. 13,000,000. If Mary invests $1,000 in stocks, she is at risk of a. losing the $1,000 she invests. b. losing more than the $1,000 she invests. c. losing nothing because she is secured.