1.
How many people signed the Buttonwood Agreement?
Correct Answer
B. Twenty-Four
Explanation
The correct answer is Twenty-Four. The Buttonwood Agreement was signed by 24 stockbrokers in 1792 under a buttonwood tree on Wall Street in New York City. This agreement laid the foundation for the New York Stock Exchange (NYSE) and established rules and regulations for trading securities among the signatories.
2.
How many points did the NASDAQ drop on October 27, 1997?
Correct Answer
B. 115
Explanation
On October 27, 1997, the NASDAQ dropped by 115 points. This indicates that the overall value of the NASDAQ index decreased by 115 points on that specific day.
3.
What is the slang term for a 15-year Participation Certificate sold by Freddie Mac?
Correct Answer
D. Gnome
Explanation
The correct answer is "Gnome." In this context, "Gnome" is a slang term used to refer to a 15-year Participation Certificate sold by Freddie Mac. It is likely that this term is used informally within the industry or among professionals familiar with Freddie Mac's products and services.
4.
Who wrote the book "Wall Street Money Machine"?
Correct Answer
C. Wade B. Cook
Explanation
Wade B. Cook is the author of the book "Wall Street Money Machine".
5.
Which U. S. Government debt security matures in less than one year?
Correct Answer
B. Treasury Bill
Explanation
A Treasury Bill is a U.S. Government debt security that matures in less than one year. It is a short-term investment option issued by the U.S. Department of the Treasury to raise funds and finance government operations. Treasury Bills are typically issued with maturities of 4 weeks, 13 weeks, or 26 weeks, making them a suitable choice for investors looking for a short-term, low-risk investment. They are sold at a discount from their face value and the investor receives the face value upon maturity, making them an attractive option for those seeking liquidity and capital preservation.
6.
How long did it take the Dow Jones Industrial Average to recoup its losses from the Crash of 1929?
Correct Answer
D. Twenty-Five Years
Explanation
The Dow Jones Industrial Average took twenty-five years to recover its losses from the Crash of 1929. This indicates that it took a significant amount of time for the stock market to regain its previous levels and for investors to recoup their losses.
7.
What is it called when an investor holds a stock for a long time despite indicators that he should sell?
Correct Answer
A. Marrying A Stock
Explanation
When an investor holds a stock for a long time despite indicators that he should sell, it is referred to as "Marrying A Stock". This term implies a strong emotional attachment to the stock, similar to a marriage commitment, where the investor is unwilling to let go of the investment despite potential risks or negative signals. This behavior can be driven by various factors such as sentimental attachment, overconfidence in the stock's performance, or reluctance to realize losses.
8.
Which group recorded the 1970's pop song "Wall Street Shuffle"?
Correct Answer
D. 10cc
Explanation
10cc recorded the 1970's pop song "Wall Street Shuffle".
9.
What stock has CASH for its symbol?
Correct Answer
C. First Midwest Financial, Inc
Explanation
The stock with the symbol "CASH" is First Midwest Financial, Inc. This symbol suggests that the company may have a strong focus on cash management or financial services related to cash. The other options do not have the symbol "CASH" associated with them.
10.
When was The Walt Disney Company added to the Dow Jones Industrial Average?
Correct Answer
C. 1991
Explanation
In 1991, The Walt Disney Company was added to the Dow Jones Industrial Average. This means that Disney's stock became part of the index, which is a benchmark for the overall performance of the stock market. Being included in the Dow Jones Industrial Average is a significant milestone for a company and often reflects its prominence and influence in the market.
11.
What happens to the price of a share of stock when the stock splits?
Correct Answer
B. It Goes Down
Explanation
When a stock splits, the total number of shares increases while the price per share decreases. This means that the overall value of the shares remains the same. The decrease in price per share after a stock split is intended to make the shares more affordable for retail investors and increase liquidity in the market. Therefore, the correct answer is "It Goes Down."
12.
Which of the following is an example of fictitious trading?
Correct Answer
C. Bucketing
Explanation
Fictitious trading refers to the practice of creating false trades or transactions to manipulate market prices or deceive investors. Bucketing is an example of fictitious trading where a broker executes trades on behalf of clients but does not actually enter them into the market. Instead, the broker keeps the trades "in the bucket" and may manipulate prices or outcomes to their advantage. This deceptive practice is illegal and can harm investors by distorting market prices and creating false perceptions of market activity.
13.
The largest and most important of twelve, the Federal Reserve Bank of New York is also known as what?
Correct Answer
B. The Boneyard
14.
What technological advance was first used on the New York Stock Exchange in 1953?
Correct Answer
B. Automated Quotation Service
Explanation
The correct answer is Automated Quotation Service. In 1953, the New York Stock Exchange introduced the Automated Quotation Service, which allowed for the automatic dissemination of stock quotes. This technological advance revolutionized the way stock prices were communicated and made it easier for traders and investors to access real-time market information.
15.
What is a European term for a stock exchange in a continental city?
Correct Answer
B. Bourse
Explanation
The European term for a stock exchange in a continental city is "Bourse". The term "Bourse" is commonly used in European countries, particularly in France and Belgium, to refer to a stock exchange. It is derived from the French word "bourse" which means purse or wallet, symbolizing the financial transactions that take place in the stock exchange.
16.
What term describes the group of all shares representing ownership in a corporation?
Correct Answer
B. Capital Stock
Explanation
Capital stock refers to the total amount of shares that a corporation is authorized to issue. It represents the ownership in a corporation and is the term used to describe the group of all shares. Blue Chip Stock refers to stocks of well-established and financially stable companies. Preferred stock refers to a class of stock that has higher priority over common stock in terms of dividend payments and liquidation. Common stock represents the ownership in a corporation and typically carries voting rights.
17.
What term describes the market in which new issues of securities are first offered to the public?
Correct Answer
B. Primary Market
Explanation
The term that describes the market in which new issues of securities are first offered to the public is the primary market. In the primary market, companies sell their securities directly to investors, allowing them to raise capital for their business operations. This is usually done through methods like initial public offerings (IPOs), where shares of a company are sold to the public for the first time. The primary market is different from the secondary market, where already issued securities are bought and sold among investors.
18.
On the New York Stock Exchange, what is a 100-share unit called?
Correct Answer
D. Round Lot
Explanation
A 100-share unit on the New York Stock Exchange is called a "Round Lot." This term refers to a standard trading unit size, typically used by institutional investors and traders. It is important to note that the term "round" does not refer to the shape of the lot, but rather to the standardized quantity of shares being traded.
19.
What year did the New York Stock Exchange have its first million share day?
Correct Answer
C. 1886
Explanation
The correct answer is 1886. In this year, the New York Stock Exchange experienced its first million share day. This means that for the first time in history, one million shares of stock were traded on a single day on the exchange. This milestone is significant as it indicates the increasing volume and activity in the stock market during this time period.
20.
What is a term for an abrupt decline in prices that comes immediately after a major stock market rally?
Correct Answer
B. Hole-In-The-Wall
Explanation
A "hole-in-the-wall" is a term used to describe an abrupt decline in prices that occurs immediately after a major stock market rally. This term is often used to depict a sudden and significant drop in stock prices, similar to how a hole in a wall can cause a sudden and unexpected change in the appearance of a room.