GBS151 Chapter 16 WORKSHEET (15 pts)

GBS151 Chapter 16 WORKSHEET (15 pts) - ±he NASDAQ market...

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Chapter 16: Managing Finances WORKSHEET (15 pts) Pages 414-438 How long does it take to double an investment? Use the “Rule of 72” to answer questions 1 and 2. 1. If you reinvest annually at 6 percent, how long will it take to double your money? 72/6= 12 years to double 2. If you want to double your money in 5 years, what percent interest must you get? 72/5= 14.4 percent interest 3. What kind of stock is the most basic form of ownership in a company? Common stock 4. Stock values are usually expressed in two different ways, which are: market value and book value 5. A payment to shareholders, on a per-share basis from the company’s earnings is a: dividend 6. Three of the most common objectives for investing are: Stability and safety, conservative capital growth, and aggressive growth 7. What government agency regulates U.S. securities markets? Securities and Exchange Commission (SEC) 8. When was the NYSE founded? 1792 9. What is the world’s oldest electronic stock market?
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Unformatted text preview: ±he NASDAQ market 10. Periods of rising stock prices, generally las±ng 12 months or longer; investors are mo±vated to buy, con³dent they will realize capital gain; is known as what kind of market? Bull markets 11. Periods of falling stock prices, usually 20 percent o² peak prices; investors are mo±vated to sell an±cipa±ng further falling prices; is known as what kind of market? Bear markets 12. What is the oldest and most widely cited U.S. market index? Dow Jones Industrial Average (DJIA) 13. Once an investor determines their desired risk-return balance, they then can achieve it in what two ways? DiversiFcaTon and asset allocaTon 14. What are angel investors? Outside investors who provide new capital for Frms in return for a share of equity ownership 15. The ³rst sale of a company’s stock to the general public is called: iniTal public o²erings (IPOs)...
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