Stocks

7 practice questionsFinanceStep-by-step solutions

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A dividend is:

A.A loan repayment

B.A distribution of a company's profits to shareholders

C.A type of tax

D.A bond coupon

Owning common stock generally represents what?

A.A utility bill

B.Ownership interest in a company

C.A loan to the government only

D.A fixed salary

The 'price-to-earnings (P/E) ratio' of a stock relates its market price to its:

A.Dividend yield

B.Earnings per share

C.Total debt

D.Book value only

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