Would You Survive Wall Street? Take This Stock Market Quiz
-
What does “buy low, sell high” mean?
-
Only buy during market crashes
-
Purchase at low price, sell at higher price
-
Avoid risky stocks
-
Always follow trends
-
You opened a trading app once, saw a green arrow, bought high, and now your portfolio looks like a sad meme graph. You’re quoting Warren Buffett but secretly Googling what a dividend is.
This Stock Market Quiz is your chance to get real. Whether you’re a crypto bro, a cautious index investor, or just here for the vibes, this stock market quiz will test your knowledge on terms, strategies, trends, and red flags. It's built to challenge your instincts, not just your vocabulary.
Disclaimer: This Stock Market Quiz is for educational and entertainment purposes only. It does not provide financial advice, investment recommendations, or professional guidance. Questions are based on common investing knowledge and should not be used to make actual market decisions. Always consult a certified financial advisor before trading real money. This quiz may cause minor ego inflation or deflation depending on your results—invest in yourself accordingly.
Quiz Preview
- 2.
What is a dividend?
-
A fee for buying stocks
-
Interest paid by banks
-
A company’s profit share to investors
-
A brokerage commission
Correct Answer
A. A company’s profit share to investorsExplanation
A dividend is a portion of a company’s profits that it returns to its shareholders, typically on a quarterly basis. Not all companies pay dividends—many fast-growing firms reinvest earnings instead. Dividends are a key factor for income investors and are seen as signs of financial health and stability. Receiving dividends also gives passive income while holding the stock, which can be reinvested to grow long-term returns.Rate this question:
-
- 3.
What does IPO stand for?
-
Independent Portfolio Outlook
-
Initial Price Offering
-
Internal Purchase Order
-
Initial Public Offering
Correct Answer
A. Initial Public OfferingExplanation
IPO stands for Initial Public Offering, which is when a private company offers shares to the public for the first time. This marks the transition from private ownership to public trading, usually on stock exchanges like the NYSE or NASDAQ. IPOs can generate massive interest due to media buzz, but they’re often volatile. Investors must weigh excitement against financials and future projections before investing.Rate this question:
-
- 4.
What does the S&P 500 track?
-
Real estate prices
-
Performance of 500 large U.S. companies
-
Crypto market activity
-
Only tech stocks
Correct Answer
A. Performance of 500 large U.S. companiesExplanation
The S&P 500 is an index that tracks the performance of 500 of the largest publicly traded companies in the U.S. across various industries. It’s considered one of the best indicators of U.S. stock market performance and is commonly used as a benchmark for fund managers. Its diversity makes it a popular tool for gauging general market sentiment and economic trends.Rate this question:
-
- 5.
What is a “bull market”?
-
A market that declines rapidly
-
A market showing slow recovery
-
A rising and optimistic market
-
A market led by farm stocks
Correct Answer
A. A rising and optimistic marketExplanation
A bull market is defined by sustained price increases across a broad range of assets, typically stocks. It reflects investor optimism, strong economic fundamentals, and growing consumer confidence. Bull markets can last months or years and often correlate with GDP growth and corporate earnings expansion. Recognizing a bull market helps shape long-term investment strategies and manage expectations.Rate this question:
-
- 6.
If you’re “diversifying,” what are you doing?
-
Only buying stocks in one sector
-
Spreading investments across asset types
-
Investing in only one company
-
Focusing only on foreign stocks
Correct Answer
A. Spreading investments across asset typesExplanation
Diversification involves spreading your investments across different asset types—stocks, bonds, ETFs, real estate—to reduce risk. Instead of putting all your eggs in one basket, diversification helps cushion losses in one area with gains in another. It’s a basic principle in portfolio management and is especially important for newer investors looking to build resilience against market volatility.Rate this question:
-
- 7.
What happens when a stock splits?
-
Its price doubles
-
Company sells more bonds
-
Shares are divided into smaller units
-
Company changes its name
Correct Answer
A. Shares are divided into smaller unitsExplanation
When a company’s stock splits, it divides each share into multiple shares, lowering the price per share without changing the company’s value. For example, in a 2-for-1 split, someone holding one share at $100 will now hold two at $50 each. Stock splits are often a sign of company growth and can make shares more accessible to smaller investors, boosting liquidity.Rate this question:
-
- 8.
Which is considered a “blue chip” stock?
-
A startup with hype
-
A stable, established company
-
A penny stock
-
A brand-new IPO
Correct Answer
A. A stable, established companyExplanation
Blue chip stocks refer to large, reputable companies with a history of reliable performance, strong financials, and stable returns. Think of companies like Apple, Johnson & Johnson, or Coca-Cola. These stocks are less volatile than newer companies and are often included in long-term portfolios for their steady dividends and resilience during downturns.Rate this question:
-
- 9.
What is a “stop-loss” order used for?
-
To increase profits
-
To pause all trading
-
To limit losses at a set price
-
To buy during highs
Correct Answer
A. To limit losses at a set priceExplanation
A stop-loss order is a tool investors use to minimize potential losses by automatically selling a stock when it falls to a pre-set price. This allows traders to enforce discipline and avoid emotional decision-making during market drops. It’s especially useful in volatile environments where quick price movements could otherwise result in major losses.Rate this question:
-
- 10.
What’s one risk of investing without research?
-
Accidental insider trading
-
Unexpected taxes
-
Losing money due to poor choices
-
Getting banned from the market
Correct Answer
A. Losing money due to poor choicesExplanation
Investing without research puts you at risk of losing money due to poor decisions, market hype, or misunderstood risks. Blindly buying stocks based on trends or influencers can lead to volatile investments, lack of diversification, and ignored fundamentals. Even basic research—like reading financials or analyst reports—can drastically improve your odds of making smart, informed investments.Rate this question:
-
Quiz Review Timeline (Updated): Jun 8, 2025 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Jun 08, 2025Quiz Edited by
ProProfs Editorial Team -
Jun 03, 2025Quiz Created by
Hansika
Back to top