Quiz: Test your stock market vocabulary (Part 2 of 2)

Done with Part 1 of this quiz? Then head off straight to the following questions.

11) San Miguel offered a 10% stock dividend in its last stockholder's meeting. The assembly hall rang with applause. San Miguel offered to:

A) buy each stockholder's 10% ownership in SMC
B) sell its 10% stock to be equally divided to shareholders
C) to pay each common shareholder a portion of the company's after tax earnings in the form of stock

12) An investment is well-hedged if:

A) it is protected against losses
B) it has limited losses
C) an investor limits losses on a certain stock by establishing an opposite position in the same stock
D) yeah it's both A and B,
E) yup, it's both A and C

13) A broker is flipping if:

A) he's losing his mind
B) he's changing his mind
C) he's asking his customers to buy a stock while another broker is simultaneously saying that their customers sell that stock,
D) he's manipulating the stock

14) Short selling is:

A) a quick sale
B) a strategy used to profit from a price decline
C) selling securities that the investor has borrowed with the intention of buying them later at a lower price
D) You'd better believe it's A and C
E) I have no doubt it's B and C

15) Someone handed you a "red herring". Could it be:

A) a bloody fish
B) a slip of paper indicating your losses in your investment
C) an abbreviated version of a company's prospectus or detailed information submitted before an initial public offering

16) The poison pill is:

A) a false tip
B) a nasty rumor
C) a stock or security designed to defend against a hostile takeover

17) This market is overbought. It may probably go down soon says Josie Velardo. What she meant was this market is:

A) technical description for a market or stock whose value has risen quickly and sharply far below its actual worth
B) seen to be bearing the symptoms of a future decline
C) filled with too many buyers
D) I think it's A and C
E) I would bet it's A and B

18) The Phisix's support is at 1550 and its resistance level 1650. Now it's current level is 1610. These levels refer to:

A) the market's floor and ceiling levels
B) where a price falls to and rise repeatedly
C) where buying and selling respectively are triggered
D) A and B looks the best choices
E) B and C are my choices
F) I think all of the above

19) The net asset value is:

A) liabilities minus total assets divided by total outstanding shares
B) liabilities plus total assets divided by total outstanding shares
C) liabilities multiplied by outstanding shares divided by total assets

20) A company asks its shareholders to waive their pre-emptive rights. This is equivalent to:

A) deferring their right to buy new common shares before they are offered to other investors
B) deferring the right to vote on the stockholder's meeting
C) deferring their right to speak at the stockholder's meeting

Answers :

11. C
12. E
13. C or D
14. E
15. C
16. C
17. E
18. F
19. A
20. A

Check your score:

1-2 points = Look out….a bear hug!
3-4 points = Not too late.
5-6 points = You didn't sleep through Stocks 101 that's for sure!
7-9 points = Right On! No need for a refresher course!
10 points = Outstanding! You can't be manipulated!

Tell us your score by posting in this quiz's discussion thread in the PMT Forum. 

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