Introduction to Stocks

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Class:

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Show your work for each problem.

1.
What is a stock?
1. a)A government bond
2. b)A loan to a company
3. c)A share of ownership in a company
4. d)A type of bank account
2.
You buy 10 shares at 5 dollars each. What is your total investment?
3.
Sarah buys 25 shares at 8 dollars each. How much does she spend?
4.
What is a dividend?
1. a)A type of stock
2. b)A payment from company profits to shareholders
3. c)The price of one share
4. d)A fee you pay to buy stocks
5.
Tom bought 30 shares at 20 dollars each. The price rose to 25 dollars. What is his profit?
6.
Lisa invested 400 dollars. Her investment is now worth 480 dollars. What is her profit?
7.
A stock was 100 dollars yesterday. Today it is up 10%. What is the new price?
1. a)110 dollars
2. b)10 dollars
3. c)100 dollars
4. d)90 dollars
8.
You invested 500 dollars and now have 600 dollars. What is your percent return?
9.
A company pays a dividend of 2 dollars per share. You own 40 shares. How much do you receive?
10.
Mike bought 50 shares at 16 dollars. The price dropped to 12 dollars. What is his loss?
11.
Anna invested 800 dollars. After one year, her investment is worth 920 dollars. What is her percent return?
12.
A stock drops 50%. What percent gain is needed to return to the original price?
1. a)25%
2. b)100%
3. c)50%
4. d)75%
13.
You have 1200 dollars. You buy 30 shares of Stock A at 20 dollars each. You spend the rest on Stock B at 15 dollars each. How many shares of Stock B do you buy?
14.
A stock was 80 dollars. It dropped 25%. What is the new price?
15.
Jake bought 40 shares at 25 dollars. The price is now 30 dollars. What is his percent return?