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FINANCIAL LITERACY EXAM

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hw400176's version from 2016-12-15 15:33

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Question Answer
What is an IPO?The first time the stock of a private company is offered to the public; often issued by smaller younger companies seeking capital to expand
How many sectors are there?10
What is a sector?A larger segment of the economy or a general economic activity
FredFinancials
UncleUtilities
Doesn'tConsumer Discretionary
ShootConsumer Staples
EasterEnergy
HeadsHealth Care
InIndustrials
TinyTechnology
TheirTelecoms
MonkeysMaterials
Closed-End Mutual Fundhas fixed number of shares with only purchase of preexisting shares
Open-End Mutual Fundhas a number of shares that varies with demand of investors
What is a Mutual FundInvestment made of funds collected from many investors for the purpose of investing in bonds, stocks, and similar assists; Gives small investors access to professionally managed, diversified portfolios
What is a stock?A share in the ownership of a company; A claim on the company’s assets and earnings
What is the S&P 500?The Standard & Poor’s 500; An index of 500 stocks seen as a leading indicator of U.S. equities and a reflection of the performance of the large cap universe, made up of companies selected by economists
What is the DOWA price-weighted average of 30 significant stocks traded on the New York Stock Exchange
What government agency regulates mutual funds?The U.S. Securities and Exchange commission; SEC; Ensures markets work efficiently
What government agency regulates the stock markets?The Financial Industry Regulatory Authority; FINRA; represents are regulates all stock and bond brokerage firms and their employees
What is a P/E ratio?The ratio of a company’s share price to tis per-share earnings
How is P/E calculated?Current Stock Price/earnings per share=market value per share
What is NAV?Net asset value; The price per share of the fund
Is there a way to determine in which market a stock is traded, NYSE or NASDAQ, based solely on its ticker symbol?Generally NASDAQ symbols consist of 4 symbols while NYSE has 3 or less, NOT ALWAYS THE CASE
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