Quiz 2 (covering Equities Part I and II) Spring 2026-IE 420-Financial Engineering-Sections GO, UO - Answered 100%.

5/5/26, 12:54 AM Quiz 2 (covering Equities Part I and II): Spring 2026-IE 420-Financial Engineering-Sections GO, UO



Quiz 2 (covering Equities Part I and II)
Due Feb 27 at 5:30pm
Points 10
Questions 46
Time Limit None

Instructions
Questions reviewing the two previous lecture slides


Attempt History
Attempt Time Score
LATEST Attempt 1 9 minutes 10 out of 10

Score for this quiz: 10 out of 10
Submitted Feb 27 at 1:27pm
This attempt took 9 minutes.
Correct answer
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Question 1
pts

In finance, a “stock” most directly represents:

Partial ownership in a company
A government tax
A fixed interest payment
A loan you give to a company
Correct answer
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Question 2
pts

Another common name for stocks is:

Equities
Liabilities
Coupons
Futures
Correct answer

https://canvas.illinois.edu/courses/65661/quizzes/409476 1/13

, 5/5/26, 12:54 AM Quiz 2 (covering Equities Part I and II): Spring 2026-IE 420-Financial Engineering-Sections GO, UO

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Question 3
pts

Common stock is mainly used to differentiate from:

Currency
Preferred stock
Treasury bills
Corporate loans
Correct answer
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Question 4
pts

Companies issue stock mainly to:

Eliminate all risk
Guarantee profits
Stop trading in markets
Raise money (capital) for the business
Correct answer
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Question 5
pts

Compared to bonds, stocks usually have:

Lower risk and lower return
No risk
Higher risk and higher potential return
Guaranteed income
Correct answer
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Question 6
pts

A dividend is best described as:

A cash payment (or stock payment) from a company to shareholders
A bond interest payment
A fee paid to the exchange

https://canvas.illinois.edu/courses/65661/quizzes/409476 2/13