What Do You Know About Shares?

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| By 19cd

19cd

Community Contributor

Quizzes Created: 1 | Total Attempts: 155

Questions: 5 | Attempts: 155 | Updated: Mar 20, 2022

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What do you know about shares? Most people today are earning a lot of money chasing shares in the stocks exchange market. Se do it so well whereas others fail all thanks to having inadequate information about how they can carry out the process successfully without risk of being sidetracked with market changes. Take this quiz and test how much you know!

Questions and Answers

1.

What is a Share?
- A.
  
  Part ownership in a company
- B.
  
  A way for a company to make money
- C.
  
  A companies investments
Correct Answer
A. Part ownership in a company

Explanation
A share refers to part ownership in a company. When an individual owns shares in a company, they have a claim on its assets and earnings. This entitles them to a portion of the company's profits and the right to vote on certain matters. Shares are bought and sold in the stock market, allowing investors to trade their ownership stakes. Therefore, the correct answer is "Part ownership in a company."

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2.

Where are shares traded nowadays?
- A.
  
  A trading floor
- B.
  
  Through a network of computers
- C.
  
  At a desk
Correct Answer
B. Through a network of computers

Explanation
Shares are traded nowadays through a network of computers. This means that trading no longer takes place on a physical trading floor or at a desk, but rather through electronic platforms and networks. This allows for faster and more efficient trading, as it eliminates the need for physical presence and enables traders to buy and sell shares from anywhere with an internet connection.

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3.

In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:
- A.
  
  Rs. 3100
- B.
  
  Rs. 6240
- C.
  
  Rs. 6500
- D.
  
  Rs. 9600
Correct Answer
B. Rs. 6240

Explanation
To obtain Rs. 10, investment = Rs. 96.

To obtain Rs. 650, investment = Rs. 96 x 650 = Rs. 6240.

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4.

Which term most accurately describes selling shares at a higher price than the price at which they were bought?
- A.
  
  Loss
- B.
  
  Asset
- C.
  
  Dividend
- D.
  
  Profit
Correct Answer
D. Profit

Explanation
The term "Profit" accurately describes selling shares at a higher price than the price at which they were bought. Profit refers to the financial gain obtained from a transaction or business activity, and in this scenario, selling shares at a higher price results in a positive difference between the selling price and the buying price, leading to a profit.

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5.

The FTSE 100 index is used to measure stock market performance in which country?
- A.
  
  France
- B.
  
  United Kingdom
- C.
  
  Germany
- D.
  
  Finland
Correct Answer
B. United Kingdom

Explanation
The correct answer is United Kingdom because the FTSE 100 index is a stock market index that represents the performance of the 100 largest companies listed on the London Stock Exchange. It is widely used as a benchmark for the UK stock market and is considered a key indicator of the country's economic health and investor sentiment.

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Current Version
Mar 20, 2022

Quiz Edited by
ProProfs Editorial Team
Apr 03, 2009

Quiz Created by
19cd

What Do You Know About Shares?

What is a Share?

Where are shares traded nowadays?

In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:

Which term most accurately describes selling shares at a higher price than the price at which they were bought?

The FTSE 100 index is used to measure stock market performance in which country?