13
InstructionMultiple Choice

Buying and Selling Stock

Question 13 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

What is the “Yield %” which sometimes appears in stock listings?

Answer
A
The % that the stock price has changed from the previous day.
B
The % of the shares of stock owned by the largest shareholder.
C
The % of shares of the stock owned by the board of directors.
D
The % of the stock price offered as a dividend.

Explanation

“Yield %” in a stock listing usually means the dividend yield: the annual dividend per share expressed as a percentage of the stock’s price. Therefore, it is the percentage of the stock price offered as a dividend, choice D. It does not describe the stock’s day-to-day price change or who owns the shares.

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