Selling Stock to Raise Capital


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question 1 of 3

How does common stock differ from preferred stock?

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1. Why might some people see preferred stock as being the BEST option?

2. What federal government agency regulates securities such as stocks?

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About This Quiz & Worksheet

One of the ways that prospective business owners can raise capital for their businesses is by selling stock. This quiz/worksheet combo will help you test your knowledge on the topic of raising capital through stock sales. The questions on the quiz will test you on types of stocks as well as the characteristics of these types of stocks.

Quiz & Worksheet Goals

In these assessments, you'll be tested on:

  • The features of preferred stock
  • Agency that regulates securities
  • Purpose of selling a particular type of stock

Skills Practiced

This quiz and worksheet will allow you to test your skills in the following areas:

  • Reading comprehension - ensure that you draw the most important information on raising capital through stock sales and the individual types of stocks from the related lesson
  • Defining key concepts - ensure that you can accurately define main phrases, such as preferred stocks
  • Knowledge application - use your knowledge to answer questions about the agency that regulates securities that include stocks

Additional Learning

To learn more about this topic, review the accompanying lesson Selling Stock to Raise Capital. This lesson covers the following objectives:

  • Discuss the purpose of selling stock
  • Define preferred stock
  • Explore and distinguish between public offerings and private placements
  • Determine the advantages and disadvantages involved in selling stock to raise capital