10 Questions
What is the purpose of a stock certificate?
It represents the stockholder's ownership in the company
What is the primary role of a stockbroker?
To facilitate the buying and selling of stocks and shares
What is the primary reason why individuals or companies buy stocks?
To obtain profit through dividends or capital gains
What is the difference between a stock dividend and a cash dividend?
A stock dividend is a distribution of additional shares, while a cash dividend is a monetary payment
What is the purpose of a stock market?
To facilitate the buying and selling of stocks and shares
What is the primary component of stockholder's equity?
The ownership interest of stockholders in the corporation
What is the purpose of issuing new shares of stock to the public?
To obtain long-term financial capital for the company
What is the primary difference between equity capital and debt capital?
Equity capital represents ownership, while debt capital is a loan
What is the primary function of a stock exchange?
To facilitate the buying and selling of stocks and shares
What is the primary reason why a company would issue a stock dividend?
To distribute profits to stockholders without using cash
Test your knowledge on the vision statement of a stock exchange, focusing on raising capital, good governance, shareholder value, market efficiency, and workforce development.
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