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1. The _______________ is a collection of people and companies where shares in the various companies are bought, sold, and traded.

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A. Life Insurance Company
B. Savings Institution
C. Stock Market
D. Bonds
Differences in Preferred and Common Shares
Preferred shares are for employees. They get paid first if the company buys back the stock but don’t get to vote on the board of trustees. Common shares are for outsiders; they get paid after employees but get to vote on the board of trustees on matters that affect the company’s direction. (Lesson 4-3 Page 2)
2. Which of these is for employees of the company?
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A. Preferred Shares
B. Common Shares
3. With which of these do you get to vote on the board of trustees on matters that affect the company’s direction?
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A. Preferred Shares
B. Common Shares
Levels of Risk
You should know that investing in the stock market has a higher risk than investing in other options. By contrast, cash savings earns only a small interest rate, but cash savings accounts are almost always safe. When you invest in the stock market, however, and the stocks you purchase do gain, you can earn a lot more money and earn it faster than with cash savings.

Stock advisors and stock brokers can help you learn more about how to pick stocks, how to invest , and how to earn. A good but less risky way to invest in stock is to invest in mutual funds. Remember, mutual funds are a collection of different stocks and investments carefully chosen and mixed by a company of experts so that over a long period you can almost always gain and often gain more than the interest that you would gain in a savings account.

Bonds are like loaning your money to a company for a specified length of time. The company will pay you interest until the time it is scheduled to repay your loan. You typically earn a little more interest on bonds than in a savings account, and bonds are about as safe, but you can’t get your money back before the scheduled time.

(Unit 4-3 page 5)
4. Choose the list that shows the investment with the least risk to the one with the highest risk.
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A. Mutual Funds, Bonds, Cash Savings, Stock Market
B. Cash Savings, Bonds, Mutual Funds, Stock Market
C. Bonds, Stock Market, Mutual Funds, Cash Savings
D. Stock Market, Mutual Funds, Bonds, Cash Savings
Example Stock Report

EXAMPLE: USE STOCK REPORT ABOVE.

What was the cost for 200 shares at the 52-Week Low?
200(155.83) = $31,166

What was the amount received if you sold your 200 shares at the High on February 7?
200(172.90) = $34,580

What was your net gain (+) or net loss (-) after the sale of your 200 shares?
34,580 - 31,166 = +$3414 so a gain of $3,414
Use this Coca-Cola Co Stock Report from August 16, 2022 to answer the questions below.

5. What was the cost for 100 shares at the 52-WEEK LOW (NOT Low)?
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A. $5228
B. $6433
C. $6523
D. $6720
6. What was the amount received if you sold your 100 shares at the HIGH (NOT 52-Week High) on August 16?
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A. $5228
B. $6433
C. $6523
D. $6720
7. What was your net gain or net loss after the sale of your 100 shares?
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A. $1295 Net Gain
B. $1295 Net Loss
C. $1492 Net Gain
D. $1492 Net Loss
8. If you sold stock for $3200 and your broker earns 2% of that as his fee, what amount did the broker receive?
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A. $64
B. $76
C. $82
D. $105

1 answer

Here are the answers to your questions:

  1. The C. Stock Market is a collection of people and companies where shares in the various companies are bought, sold, and traded.

  2. A. Preferred Shares are for employees of the company.

  3. With B. Common Shares, you get to vote on the board of trustees on matters that affect the company's direction.

  4. The list that shows the investment with the least risk to the one with the highest risk is B. Cash Savings, Bonds, Mutual Funds, Stock Market.

  5. To answer question 5 regarding the cost for 100 shares at the 52-WEEK LOW, the answer is unknown without the specific stock price information provided in the report, but based on the options, I can’t determine it.

  6. Similar to question 5, the amount received if you sold your 100 shares at the HIGH depends on the specific stock price at that time, which is not provided. Thus, I cannot determine the correct answer without that data.

  7. For your net gain or net loss after the sale of your 100 shares, I would need the selling price and buying price to answer accurately; therefore, I cannot determine it.

  8. If you sold stock for $3200 and your broker earns 2% of that as his fee, the amount the broker received would be A. $64 (calculation: $3200 * 0.02 = $64).

Please provide the specific stock price information needed for questions 5, 6, and 7, and I’ll be able to give you precise answers.