1. Multiple Choice. Write the letter of the best answer on a separate sheet of paper.
1. A person who owns shares of corporation stock.
a. Seller
b. Buyer
c. Bondholder
d. Stockholder
2. Earnings are distributed to shareholders of a corporation or a share of the company's profit
a. Stocks
b. Bonds
c. Dividend
d. Market Price
3.3. A certificate of a long-term promissory note issued by a corporation or government in exchange
for a sum of money.
a. Stocks
b. Bonds
C. Bank Note
d. Promissory Note
4. Which of the following is TRUE about the Market price of one P5,000.00 bond at 113%?
a. The market price is P5,650.00 and the bond is selling at par.
b. The market price is P5,650.00 and the bond is selling at discount.
c. The market price is $5,650.00 and the bond is selling at a premium.
d. The market price is P5,650.00 and par value of P5,000.00 per bond in which the selling price
is at normal
5. Corporation X, with a current market value of P52.00, gave a dividend of 8.00 per share for its
common stock. Corporation Y, with a current market value of 295.00, gave a dividend of 12.00 per
share. If you are to decide, in which company will you invest your money?
a. I will invest in Company X because it has a higher stock yield ratio than in Company Y.
b. I will invest in Company Y because it has a higher stock yield ratio than in Company X
c. I will invest neither Company X nor Company Y because they do not have the same stock
yield ratio.
d. I will invest in both companies because they have the same stock yield ratio and in both
companies, I will earn more,
6. You bought stocks in two companies. In Company S you own 1,000 shares at P750.00 per share
while in Company Z you own 10,000 shares at P85.00 per share. In which company will you receive a
greater dividend? Explain how you were able to know which is greater?
a. Companys
b. Company z
c. Both Company S and Z d. Neither Company Snor Company Z
7. Your friend bought seven P1,000.00 bonds in a certain company at 95% plus a commission of P15.00
per bond. Find the total amount of investment of your friend.
a. P6,650.00
b. P105.00.00
c. P6.755.00
d. P7,000.00​