8 Questions
Stocks represent fractional ownership of equity in a _____________________. Corporation.
The two main types of stock are ____________________ and preferred. Common.
Shareholders have a claim to part of the company's assets and _____________________. Earnings.
Stocks are predominantly bought and sold on _____________________. Stock exchanges.
Over the long run, stocks have historically outperformed most other _____________________. Investments.
Companies issue stock to raise funds to operate their _____________________. Businesses.
Owning stock gives you the right to vote in shareholder meetings, receive _____________________, and sell your shares. Dividends.
There are important distinctions between stocks and _____________________. Bonds.
Study Notes
- A stock represents fractional ownership of equity in a corporation.
- There are two main types of stock: common and preferred.
- Shareholders have a claim to part of the company's assets and earnings.
- Stocks are bought and sold predominantly on stock exchanges.
- Stocks have historically outperformed most other investments over the long run.
- Companies issue stock to raise funds to operate their businesses.
- Owning stock gives you the right to vote in shareholder meetings, receive dividends, and sell your shares.
- There are important distinctions between stocks and bonds.
- All investments have a degree of risk.
- The type of stock held by a shareholder determines the rights and benefits of ownership.
Test your knowledge of stocks and investing with our quiz! From the different types of stocks to the risks involved, this quiz covers the basics of investing in the stock market. Challenge yourself and see how much you know about owning a piece of a company and potentially earning dividends. Whether you're a seasoned investor or just starting out, this quiz will give you a better understanding of the world of stocks.
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