COPYRIGHTED MATERIAL
ARE YOU FINANCIALLY LITERATE? CHAPTERS 15-17
Name: _____________________________________________________________________________
1. On an average day, about $40 billion in shares is traded in the NYSE. This number reflects the ________________ volume. 2. On the financial news, it was reported that “890,800,900 shares change hands on the NYSE today.” This number refers to the ________________ volume. 3. A stock chart tracks a stock’s 52 week high and low prices. Tell 3 reasons why such information is of interest to an investor? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 4. Regarding stock, yield is a __________ return on the investment, expressed as a _______________ of current per share price. 5. If a stock does not pay a dividend, can there be a yield? _____ 6. If the price of a share of stock is $38.00 and the dividend is $2.50 annually, what is the yield? _________ 7. Mutual funds, insurance companies, pension, and retirement funds that pool and invest cash 6.5% no percentage dollar share It enables an investor to track the stock’s value trend (up or down); determine if it is a stable or volatile stock; and how wide the price fluctuations are . PRODUCT PREVIEW members’ money are called ____________________ investors. 8. Net profit divided by the number of shares outstanding will tell you: a. P/E ratio b. stock’s rating c. net change in value d. earnings per share (EPS) 9. Market capitalization is a. the total value of the company’s outstanding shares. b. the earnings per share multiplied by volume traded. c. the companies product market share. d. the ratio of share price to a company’s per share earnings. institutional Circle True or False 10. T F Average P/E ratios vary between industries. What is considered a high P/E ratio in one industry may be low for another industry.
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Assessment 330
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