Share Marketing Objective type Questions and Answers

11) How many companies make up Dow Jones Industrial Average?
  A. 10 Companies
  B. 20 Companies
  C. 30 Companies
  D. 50 Companies
Ans: C

12) It is always good to invest in a stock that has declined or seems to be "on sale."
  A. True
  B. False
Ans: B

13) If there are more buyers than sellers the prices____________.
  A. Fall
  B. Rise
Ans: B

14) Money availibility can change with....(check all that apply)
  A. Movement of Interest rates
  B. Earning of a Corporation
  C. Having Investors
Ans: A,B

15) _____________________ is where the price stops declining and either flattens out or begins to retrace its upward trend.
  A. Substructure
  B. Foundation
  C. Floor
  D. Bottom
  E. Hault
Ans: D

16) From your readings, What are the common reasons a price decline might NOT be so serious?
  A. Company stock is taking a break
  B. Market Ans: ion
  C. Profit taking from employee stock distribution
  D. Cheaper to buy
  E. No news related reason at all
Ans: B,C,E

17) From your readings, What are the common reasons a price decline could be serious? (Check all that apply)
  A. Lower earnings or estimates are predicted.
  B. Possible lawsuit.
  C. Low credit ratings.
  D. Employee strike
  E. Tax problems
Ans: A,B,C,E

18) If there are more sellers than buyers the prices _____________.
  A. Fall
  B. Rise
Ans: A

19) A good investor must become familiar with the ____________ action of the market and the stock of interest
  A. Past
  B. Buyer
  C. Current
  D. Seller
  E. Future
Ans: C

20) The stock market always trades.....
  A. Due to current prices and trends.
  B. In anticipation for the future.
  C. Based on past sales.
Ans: B

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