Which of the following would help you understand more about the value of a stock?

	A.	Looking deep into your heart and determining what a fair price is for the value of the stock, based on future earnings potential.
	B.	A historical biography on the life of the top five board members.
	C.	Price/Earnings Ratio, Earnings / Share or EPS, the bid and ask price, ranges, volume, and market cap

What is the main difference between a stock and a bond?

	A.	Bonds provide higher returns than stocks
	B.	Bonds have finite maturity and stock do not have finite maturity
	C.	Stocks are cheaper than bonds

What other types of information is available for a stock on a site like Yahoo Finance?

	A.	Information relevant to the peers of the company, such as Twitters news for Facebook
	B.	What the accountant said to the Chief Financial Officer in a closed door meeting.
	C.	What the CEO is planning to do with his own share of the company, 15 years forward.

How do you know whether a company is overvalued?

	A.	When PEG ratio is < 1 then the company is overvalued
	B.	When PEG ratio is > 1 then the company is overvalued
	C.	When PEG ratio is = 0 then the company is overvalued

Which of the follow is true about options?

A.

a. Option does not give the right but obligation to buy

B.

b. No intrinsic value

C.

c. Are legal contracts between two parties

What does Previous Close mean?

	A.	The price at which the asset closed yesterday.
	B.	The price which the asset will be valued at at 4:00 pm the following day.
	C.	The date of last issuance of new shares by the company whose shares are being examined.

Which of the following is not the two main parts in bond payments?

	A.	An annuity series comprising of coupon payments
	B.	A single sum payable at the end
	C.	Future value of the face value

Price earnings ratio is defined a

	A.	Current stock price / Future earnings per share (EPS)
	B.	Expected stock price/ 52 week historical earnings per share(EPS)
	C.	Current stock price / Earnings per share

What types of information do analysts provide

	A.	Forward looking earnings per share target estimates.
	B.	Reasons why people purchased the stock around the time of the Great Depression forwards.
	C.	The best guess for future valuation of the stock with no explanation as to why.

When you evaluate the brokers/analysts recommendations, which of the following are important to consider?

	A.	Whether the stock recommended provide you good returns?
	B.	Whether the analyst has any conflict of interest
	C.	The stock recommended by analyst will always provide high returns.

Valuing a bond is relatively simpler than valuing a stock

True

False

Which of the following happens after a Bond rating goes down?

	A.	Decreases risk
	B.	Increases borrowing cost
	C.	Increases value

Which of the following is not true about stock options?

	A.	Stock options are purchased by paying option premium
	B.	No intrinsic value
	C.	Option price depends on the underlying value