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Questions and Answers
What type of stock earns profits above the average profits of all firms in the economy?
What type of stock earns profits above the average profits of all firms in the economy?
Which stock pays higher than average dividends from a steady source of income?
Which stock pays higher than average dividends from a steady source of income?
Which type of stock follows the business cycle of advances and declines in the economy?
Which type of stock follows the business cycle of advances and declines in the economy?
Which stock remains stable during declines in the economy and has a history of stable earnings?
Which stock remains stable during declines in the economy and has a history of stable earnings?
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What financial activity involves transactions in property such as stocks, bonds, commodities, and currency?
What financial activity involves transactions in property such as stocks, bonds, commodities, and currency?
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What is the market in which outstanding securities are bought and sold by owners other than the issuers?
What is the market in which outstanding securities are bought and sold by owners other than the issuers?
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Which measure of variability is equal to the square root of the variance?
Which measure of variability is equal to the square root of the variance?
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What is the estimation of future security price movements based on past price and volume movements called?
What is the estimation of future security price movements based on past price and volume movements called?
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What is the professional management of various securities and assets in order to meet specified investment goals called?
What is the professional management of various securities and assets in order to meet specified investment goals called?
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What is the probability of not achieving the forecast return often referred to as?
What is the probability of not achieving the forecast return often referred to as?
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Which type of stock generally attracts conservative investors?
Which type of stock generally attracts conservative investors?
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Study Notes
Stock Types
- Superior stock: earns profits above the average profits of all firms in the economy
- Income stock: pays higher than average dividends from a steady source of income
Market and Economy
- Cyclical stock: follows the business cycle of advances and declines in the economy
- Defensive stock: remains stable during declines in the economy and has a history of stable earnings
Financial Activities
- Investing: involves transactions in property such as stocks, bonds, commodities, and currency
- Secondary market: the market in which outstanding securities are bought and sold by owners other than the issuers
Measures and Analysis
- Standard deviation: a measure of variability equal to the square root of the variance
- Technical analysis: the estimation of future security price movements based on past price and volume movements
Investment Management
- Portfolio management: the professional management of various securities and assets in order to meet specified investment goals
- Risk: the probability of not achieving the forecast return
Investor Profiles
- Conservative investors: generally attracted to defensive stocks
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Description
Test your knowledge on different types of stocks by identifying blue chip, income, growth, and cyclical stocks based on their characteristics and behaviours in the economy.