Stock Valuation and Market Knowledge Quiz
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Questions and Answers

Which market is the sale of new securities by corporations?

  • Primary Market (correct)
  • Initial Public Offering
  • Primary Offering
  • Secondary Market
  • What is the ratio of stock price to earnings per share?

  • Bid Price
  • P/E Ratio (correct)
  • Common Stock
  • Dividend
  • What is the first offering of stock to the general public called?

  • Primary Offering
  • Secondary Market
  • Initial Public Offering (correct)
  • Primary Market
  • What are ownership shares in a publicly held corporation called?

    <p>Common Stock</p> Signup and view all the answers

    What is the periodic cash distribution from the firm to the shareholders called?

    <p>Dividend</p> Signup and view all the answers

    Valuing a Business by ______

    <p>Discounted Cash Flow</p> Signup and view all the answers

    Market Anomalies and ______ Finance

    <p>Behavioral</p> Signup and view all the answers

    The ______ sells shares in the firm

    <p>Primary Offering</p> Signup and view all the answers

    The ______ of stock price to earnings per share

    <p>P/E Ratio</p> Signup and view all the answers

    Market for the sale of new securities by corporations ______

    <p>Primary Market</p> Signup and view all the answers

    Study Notes

    Primary Market

    • The primary market is where corporations sell new securities.

    Stock Valuation

    • The price-to-earnings (P/E) ratio is the ratio of stock price to earnings per share.

    Initial Public Offering (IPO)

    • An IPO is the first offering of stock to the general public.

    Corporate Ownership

    • Ownership shares in a publicly held corporation are called stocks or equities.

    Dividend Payments

    • Periodic cash distributions from a firm to its shareholders are called dividends.

    Business Valuation

    • Valuing a business can be done using various methods, including discounted cash flow (DCF) analysis.

    Financial Anomalies

    • Market anomalies and behavioral finance involve studying deviations from market efficiency.

    Corporate Finance

    • The treasurer of a firm sells shares in the company.

    Stock Valuation Ratio

    • The price-to-earnings (P/E) ratio is the ratio of stock price to earnings per share.

    Primary Market Definition

    • The primary market is the market for the sale of new securities by corporations.

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    Description

    Test your knowledge on valuing stocks and understanding the stock market in this quiz. Topics include market values, book values, liquidation values, common stock valuation, dividend discount model, discounted cash flow, market anomalies, and behavioral finance.

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