Stock Exchange Vision Statement Quiz
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the purpose of a stock certificate?

  • It represents the stockholder's ownership in the company (correct)
  • It is used to buy and sell stocks on the stock market
  • It is a document that records stock dividends
  • It determines the value of a company's stocks
  • What is the primary role of a stockbroker?

  • To determine the value of a company's stocks
  • To distribute stock dividends to stockholders
  • To issue stock certificates to stockholders
  • To facilitate the buying and selling of stocks and shares (correct)
  • What is the primary reason why individuals or companies buy stocks?

  • To receive stock certificates as collector's items
  • To obtain profit through dividends or capital gains (correct)
  • To gain control over the company's operations
  • To earn interest income like from a bank deposit
  • What is the difference between a stock dividend and a cash dividend?

    <p>A stock dividend is a distribution of additional shares, while a cash dividend is a monetary payment</p> Signup and view all the answers

    What is the purpose of a stock market?

    <p>To facilitate the buying and selling of stocks and shares</p> Signup and view all the answers

    What is the primary component of stockholder's equity?

    <p>The ownership interest of stockholders in the corporation</p> Signup and view all the answers

    What is the purpose of issuing new shares of stock to the public?

    <p>To obtain long-term financial capital for the company</p> Signup and view all the answers

    What is the primary difference between equity capital and debt capital?

    <p>Equity capital represents ownership, while debt capital is a loan</p> Signup and view all the answers

    What is the primary function of a stock exchange?

    <p>To facilitate the buying and selling of stocks and shares</p> Signup and view all the answers

    What is the primary reason why a company would issue a stock dividend?

    <p>To distribute profits to stockholders without using cash</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser