Quiz on Lesson ” What Is A Share “

What does “shares outstanding” refer to?

A. The number of pieces a company has been divided into

B. The total market value of a company's shares

C. The number of shares an investor owns

What is the price to earnings ratio (PE)?

A. The ratio of a company's market value to its earnings per share

B. The ratio of a company's shares outstanding to its net income

C. The ratio of a company's assets to its liabilities

Why is it important to understand the value of a whole business when valuing one share?

A. Because it helps determine the market price of a stock

B. Because it provides insight into the company's financial health

C. Because the value of one share is proportional to the value of the entire business.

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