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This quiz consists of 5 multiple choice and 5 short answer questions through Common Stock.

Multiple Choice Questions

1. Ben Graham personified the market with the name ___________, to give it a more human side.
(a) Sir Market.
(b) Mr. Big.
(c) The Market Man.
(d) Mr. Market.

2. Buffett disliked _________ because of its leverage, according to the book.
(a) Banking.
(b) Savings bonds.
(c) Stocks.
(d) Accounting.

3. Buffett and Munger recapitalize into Class A and _____ non-voting shares to offer a lower trading price.
(a) B.
(b) C.
(c) E.
(d) D.

4. Owners were expected to conclude that retained _______ were better left in the corporation for reinvestment at a higher rate than paid out as dividends.
(a) Earnings.
(b) Losses.
(c) Shares.
(d) Values.

5. What was the title of Buffett in relation to his company?
(a) President.
(b) Owner.
(c) Chairman.
(d) Vice-Chairman.

Short Answer Questions

1. What did Berkshire do in the case of the zero-coupon bonds? They deducted ______ with no cash paid out.

2. What did a bondholder have to do with their bond if they decided to cash it in early?

3. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.

4. Buffett and Munger also followed the idea of minimal use of _______ and leverage, helping to create solid investments.

5. Berkshire Hathaway's insurance companies maintained how many permanent common stock holdings?

(see the answer key)

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