Start learning →

FINRA Series 63 Finance — practice by topic

Browse 30 questions across 4 Finance topics. Choose what you want to revise, then open a question to check its answer and worked solution.

Start learning FINRA Series 63 with Quill →

Finance topics

Finance (30)Investment Certification (30)Securities (30)Stock Valuation (30)

Try a Finance question

A stock trades at 24 and earns 4 a share. Its price to earnings ratio is:Read the answer and worked solution →The P/E ratio shows the price an investor pays for each unit of corporate:Read the answer and worked solution →A P/E quoted as ttm is built from results over the trailing period of:Read the answer and worked solution →A P/E built from projected rather than reported earnings is described as:Read the answer and worked solution →

Worked practice questions

A stock trades at 24 and earns 4 a share. Its price to earnings ratio is:

  1. 6
  2. 4
  3. 8
  4. 9
Show answer and solution

Correct answer: A. 6

1. The ratio divides share price by earnings per share. 2. 24 divided by 4 gives six. 3. The P/E ratio is 6. _Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._

Open this question →

The P/E ratio shows the price an investor pays for each unit of corporate:

  1. Enrolment
  2. Earnings
  3. Equipment
  4. Employment
Show answer and solution

Correct answer: B. Earnings

1. The denominator of the ratio is earnings per share. 2. The numerator is what the market charges for a share. 3. So it prices each unit of earnings. _Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._

Open this question →

A P/E quoted as ttm is built from results over the trailing period of:

  1. 12 months
  2. 12 weeks
  3. 12 days
  4. 12 years
Show answer and solution

Correct answer: A. 12 months

1. The abbreviation stands for trailing twelve months. 2. It uses actual reported figures, not forecasts. 3. So the window is the last 12 months. _Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._

Open this question →

How to practise

  1. Choose a Finance question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.