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25 Cards in this Set
- Front
- Back
Macroeconomics is the study of aggregate measures of economic activity at the international, national, regional, or state level.
T/F? |
true
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The demographics of the US are a great concern for the stock market because of which group?
-Gen X -Gen Y -Gen Z -baby boomers -Grey panthers |
baby boomers
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A normal business cycle is composed of:
-expansions -contractions -recessions -all of the above -none of the above |
all of the above
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Which of the following is not one of the five market forces of industry competitiveness?
-competition among existing firms -possible new entrants to the market -substitution of other products by consumers -bargaining power of customers -government bailout |
government bailout
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One way to align management goals to those of shareholders is through incentive pay.
T/F? |
true
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Which of the following is not a group that monitors firms?
-board of directors -credit rating agencies -investment analysts -the Securities and Exchange Commission -All of them are SUPPOSED to monitor firms and have done a really poor job of it lately |
All of them are SUPPOSED to monitor firms and have done a really poor job of it lately
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Which of the following gives a "picture" of the firm at a specific point in time?
-income statement -balance sheet -statement of cash flows -report of the auditors -all of the above |
balance sheet
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Retained earnings are cash.
T/F? |
false
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Net tangible assets represents book value less all intangible assets such as goodwill.
T/F? |
true
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Return on equity is the measure of what the firm made on the assets it owns.
T/F? |
false
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A really nifty thing is debt. Using debt, the firm can leverage up its earnings and make more money on the actual money shareholders have invested.
T/F? |
true
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Analysis of a company's liquidity situation would not involve which of the following ratios.
-current ratio -quick ratio -interest coverage ratio -inventory turnover -all of the above deal with a company's liquidity state |
inventory turnover
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A growth stock would have a high P/E ratio.
T/F? |
true
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A value stock would have a high P/B ratio.
T/F? |
false
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A value stock would have a low P/S ratio.
T/F? |
true
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Contrary investment strategy is investing against the perceived emotions of the crowd. So the current contrarian strategy would be to buy financial stocks right now and with maybe some of the car companies thrown in.
T/F? |
true
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A stock is undervalued when the current price is less than intrinsic of true price.
T/F? |
true
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Graham and Dodd called the difference between the market value and appraised value the:
-margin of safety -intrinsic value -undervaluation -true price -liquidation value |
margin of safety
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dividends represent an unimportant part of stock ownership.
T/F? |
false
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Stocks tend to "revert-to-the-mean:, which is the basis of value investing.
T/F? |
true
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Top-line growth refers to:
-earnings -sales -best product in the industry -best product in the company -best product for a retailer |
sales
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Roll-up growth is when a company puts stores nearly everywhere it can, like Starbucks or Wal-Mart, etc.
T/F? |
false
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The key to growth investing is getting in early and leaving before the stock falls dramatically, which growth stocks frequently do.
T/F? |
true
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You would likely find the most growth stocks in this sector.
-technology -defensive -oil -cyclical -consumer |
technology
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A sell-side analyst frequently makes stock sell recommendations.
T/F? |
false
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