The acronym NASDAQ one of the stock exchanges stands for a.National Academy of Stock De

The acronym NASDAQ (one of the stock exchanges) stands for

a.National Academy of Stock Dealers Automated Quotations

b.New American Securities Dealers Automated Quotations

c.National Association of Securities Dealers Automated Quotations

d.North American Stock Dealers Automated Quotations

 

 

 

29.The original Dow Jones Industrial Average (DJIA) contained ____________ stocks, while the DJIA now consists of ____________ stocks.

a.10; 500

b.11; 30

c.15; 50

d.20; 60

 

 

 

30.Today, the Dow Jones Industrial Average

a.consists of 30 stocks.

b.is a set group of stocks that remains constant over time.

c.contains stocks that are widely held by institutional investors and individuals.

d.contains both stocks and bonds of large American companies.

e.a and c

 

 

 

31.Which of the following is false?

a.The list of stocks that are included in the Dow Jones Industrial Average changes from time to time, and is determined by the editors of the Wall Street Journal.

b.The Dow Jones Industrial Average first appeared on the scene in 1896.

c.When the Dow Jones Industrial Average was first computed, prudent investors bought bonds, not stocks.

d.The Dow Jones Industrial Average is computed by summing the prices of the thirty stocks included in the average and dividing by 30.

 

 

 

32.Which of the following is false?

a.The Wilshire 5000 is a stock index that consists of the stocks of about 6,500 firms.

b.Instead of buying a mutual fund that consists of various stocks picked by a fund manager you can buy a mutual fund that consists of the stocks that make up a particular stock index.

c.The term Sypders stands for “Standard  & Poors Direct Receipts.”

d.When an investor buys Spyders they are said to “buy the market.”

 

 

 

33.Which of the following is false?

a.The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s.

b.Based on data from the period between 1926 and 2004, the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years.

c.When reading the stock market page of a newspaper, if the column marked “Div.” is blank, it means that the company does not currently pay out dividends.

d.A stock that yields 4 percent is better than a stock that yields 5 percent, all else being the same.

 

 

 

34.The yield of a stock is the

a.dividend divided by the closing price per share.

b.dividend divided by the average daily price of the stock.

c.closing price divided by the 52-week low price.

d.dividend divided by the opening price per share.

 

 

 

35.Suppose that the annual dividend per share of stock is $1.40 and the closing price of the stock is $22.00, the yield on the stock would be approximately

a.6.36%

b.15.71%

c.21.60%

d.9.70%

 

 

 

36.Suppose that the annual dividend per share of stock is $5.40 and the closing price of the stock is $72.50, the yield of the stock would be

a.13.43%

b.7.45%

c.23.62%

d.8.38%

 

 

 

37.In reading the stock market quotes in the newspaper, the column with the heading “Ticker” gives the

a.number of shares of the stock traded that day.

b.the full name of the company whose stock is being studied.

c.stock symbol for the company.

d.highest price the stock has sold for in the past year.

 

 

 

38.In reading the stock market quotes in the newspaper, the column with the heading “P/E” gives the

a.number of shares of the stock traded that day.

b.dividend per share divided by the closing price per share.

c.stock symbol for the company.

d.latest closing price per share divided by the latest available earnings per share.