Stocks Basics and Capital Gains Quiz
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Questions and Answers

Which of the following is an example of a capital gain?

  • Buying 100 shares of Company XYZ at $125.00 a share and selling it for $100.00 a share
  • Buying 100 shares of Company XYZ at $100.00 a share and selling it for $125.00 a share (correct)
  • Buying 100 shares of Company XYZ at $90.00 a share and selling it for $100.00 a share
  • Buying 100 shares of Company XYZ at $100.00 a share and selling it for $90.00 a share

    • Which of the following is an example of a dividend?

  • Company XYZ declaring an annual dividend of PhP10.00 a share (correct)
  • Company XYZ decreasing the price of its shares by PhP10.00
  • Company XYZ increasing the price of its shares by PhP10.00
  • Company XYZ selling its shares at a discount of PhP10.00

    • What is an IPO?

  • An investment portfolio option
  • An international stock exchange
  • An initial public offering, a way for a company to raise growth money for expansion (correct)
  • An investment strategy

    • What is a downside of an IPO?

    <p>Giving up control of the company</p> Signup and view all the answers

    What factors can greatly affect the stock market?

    <p>Economics, social, and political factors</p> Signup and view all the answers

    What is a capital gain?

    <p>A profit made when selling stock at a higher price than the purchase price.</p> Signup and view all the answers

    Can you provide an example of a capital gain?

    <p>If you buy 100 shares of Company XYZ at $100.00 a share and sell them for $125.00 a share, you've realized a capital gain of $25.00 a share, or $2,500.00.</p> Signup and view all the answers

    What are dividends?

    <p>Dividends are the distribution of profits from a company to the stockholders.</p> Signup and view all the answers

    Can you give an example of dividends?

    <p>If Company XYZ declares an annual dividend of PhP10.00 a share and you own 100 shares, you'll earn PhP1000.00 a year, or PhP250.00 paid each quarter.</p> Signup and view all the answers

    What is an IPO?

    <p>IPO stands for Initial Public Offering, which is a great way for companies to raise growth money for expansion, but it also means giving up control of the company.</p> Signup and view all the answers

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