Investing in Stocks – Flashcards

Mark is looking for professional financial assistance. Mark has never invested before and is not quite sure where to start. He knows that he wants to build up investments for future projects such as retirement, but he is not sure how to navigate investment in light of his existing debts. Recommend an appropriate financial professional for Mark.

Broker P charges a commission of $8.50 for every ten shares of stock, and Broker Q charges a fee of $65.00 for every thousand dollars bought or sold. If stock in Ergar Appliances costs $18.75 per share and you buy 500 shares, which broker is the better deal, and by how much?

Which of the following services will be provided by a full-service broker but not by a discount broker? I. Research of potential investment opportunities II. Purchase and sale of stock at your request III. Recommendation of investments

Stock in Trochel Office Supplies trades at $72.40 per share and pays a yearly dividend of $6.92 per share. If David owns stock in Trochel Office Supplies worth $6,443.60, how much does he get paid in yearly dividends?

Which legally required form divulges information about financial advisors?

Stock

Dividend

Broker

Rob owns stock in Dowc Beverage Co. and Agram Imports. He owns 86 more shares of Agram Imports, which pays a dividend of $5.15 per share, than he does of Dowc Beverage Co., which pays $6.52 per share. If Rob receives $4,585.15 in dividends annually, how many shares of Agram Imports does he own?

Darryl's portfolio includes 66 shares of Essentia Inc., 95 shares of SFT Legal, and 180 shares of Grath Oil. If Essentia Inc. pays a yearly dividend of $1.79 per share, SFT Legal pays $2.62 per share, and Grath Oil pays $1.18 per share, how much does Darryl receive in dividends every year?

Rayje Clothiers stock pays a yearly dividend of $9.03 and trades for $159.50 per share. If Eli owns stock in Rayje Clothiers worth $14,833.50, how much does Rayje Clothiers pay Eli in annual dividends?

Rod is looking for professional financial assistance. Rod has a solid grasp of how investing works, but needs a way to handle the actual buying and selling of stocks. Rod knows where he wants his portfolio to be over the long term, and he believes that he knows in which companies he wishes to invest. Recommend an appropriate financial professional for Rod.

Brett owns 236 shares of Animite Energy Co., each of which offers a yearly dividend of $3.59. How much money does Brett receive from dividends every year?

Which of the following is not something you should consider when evaluating a broker?

Xyx Motors pays Nick $1,567.46 in dividends every year. If the dividend on one share of Xyx Motors is $4.33, how many shares does Nick own?

Andrew owns stock in Hyren Airlines and as a result gets paid dividends worth $539.70 every year. If Andrew owns 105 shares of Hyren Airlines, how big is the dividend each share yields?

What is the difference between a full-service broker and a discount broker?

Say you own 316 shares of Esti Transport stock, which offers an annual dividend of $8.16 per share. How much will you receive in quarterly dividends?

Drius Security stock has a yearly dividend of $12.11. If you own 132 shares of Drius Security, how much do you get paid in quarterly dividends?

Liz owns stock in Nar Heating/Cooling and Cilla Shipping. She owns 120 more shares of Cilla Shipping than she does of Nar Heating/Cooling. Nar Heating/Cooling pays a yearly dividend of $5.78 per share, and Cilla Shipping pays a yearly dividend of $4.15 per share. If Liz receives $1630.02 in dividends annually, how many shares of Nar Heating/Cooling does she own?

Say you own 5,715 shares of Sanden Research Labs, each of which pays a yearly dividend of $14.66. How much do you receive in dividends every year?

What is the SEC?

What is a commission, as it relates to the stock market?