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
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
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
Question 3
pts
Common stock is mainly used to differentiate from:
Currency
Preferred stock
Treasury bills
Corporate loans
Correct answer
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
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
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
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
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
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
Question 3
pts
Common stock is mainly used to differentiate from:
Currency
Preferred stock
Treasury bills
Corporate loans
Correct answer
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
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
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
