Stock Market Trivia

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Stock Market Trivia - Quiz

A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately. Want to understand Stock Market? Take this quiz.


Questions and Answers
  • 1. 

    __________ are shares available to the public for trading.

    • A.

      Restricted Shares

    • B.

      Options

    • C.

      Outstanding Shares

    • D.

      Standing Shares

    Correct Answer
    C. Outstanding Shares
    Explanation
    Outstanding shares refer to the total number of shares of a company's stock that are owned by shareholders, including institutional investors and the general public. These shares are available for trading on the stock exchange, allowing individuals to buy and sell them freely. Restricted shares, on the other hand, are shares that are subject to certain limitations or restrictions on their sale or transfer. Options are financial derivatives that give the holder the right, but not the obligation, to buy or sell a specific asset at a predetermined price. Standing shares is not a commonly used term in finance or investing.

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  • 2. 

    A ___________ occurs when the share price makes a big move up or down w/ no trading in between

    • A.

      Swing

    • B.

      Platform

    • C.

      Option

    • D.

      Gap

    Correct Answer
    D. Gap
    Explanation
    A gap occurs when the share price makes a big move up or down with no trading in between. This means that there is a significant difference between the closing price of the previous day and the opening price of the next day. Gaps can be caused by various factors such as news announcements, earnings reports, or market sentiment. Traders often analyze gaps as they can provide valuable information about the market's direction and potential trading opportunities.

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  • 3. 

    ___________ are the amount of profit that a company produces (quarterly).

    • A.

      Earnings (Call)

    • B.

      Dividends

    • C.

      Capital

    • D.

      Breakouts

    Correct Answer
    A. Earnings (Call)
    Explanation
    Earnings (Call) refers to the amount of profit that a company generates on a quarterly basis. This term is commonly used in the financial industry, especially during earnings calls where company executives discuss the financial performance and results with analysts and investors. Earnings (Call) is a crucial metric in evaluating a company's profitability and financial health. It indicates the company's ability to generate profits from its operations and is an important factor for investors in making investment decisions.

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  • 4. 

    ______________ is a process in which traders can use to filter stocks based on user-defined metrics.

    • A.

      Searching

    • B.

      Due Diligence

    • C.

      Fundamental Analysis

    • D.

      Screening

    Correct Answer
    D. Screening
    Explanation
    Screening is a process in which traders can use to filter stocks based on user-defined metrics. It involves setting specific criteria such as price, market capitalization, volume, and other fundamental or technical indicators to narrow down the list of potential stocks for investment. By using screening, traders can focus on stocks that meet their specific requirements and eliminate those that do not meet their criteria. This helps traders save time and effort by quickly identifying stocks that align with their investment strategy.

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  • 5. 

    _________________ is calculated as Share Price divided by the Forward Earnings Analysts Estimates.

    • A.

      Earnings Per Share

    • B.

      Price to Earnings

    • C.

      Forward Price to Earnings

    • D.

      Dividends

    Correct Answer
    C. Forward Price to Earnings
    Explanation
    Forward Price to Earnings is calculated as Share Price divided by the Forward Earnings Analysts Estimates. This ratio is used to determine the relative value of a company's stock by comparing its current share price to its projected future earnings. It helps investors assess whether a stock is overvalued or undervalued based on its potential earnings growth. A higher Forward Price to Earnings ratio suggests that the stock may be overvalued, while a lower ratio indicates that it may be undervalued.

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  • 6. 

    This is a ________________ candlestick.

    • A.

      Closing

    • B.

      Opening

    • C.

      Bullish

    • D.

      Bearish

    Correct Answer
    C. Bullish
    Explanation
    A bullish candlestick refers to a candlestick pattern that indicates a rising or upward trend in the market. It is characterized by a long body, which represents a significant increase in price from the opening to the closing of the trading period. This suggests that buyers have taken control and are pushing the price higher. Therefore, the correct answer for this question is "Bullish."

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  • 7. 

    This candlestick is a _____________________.

    • A.

      Falling Star

    • B.

      Hammer

    • C.

      Dark Cloud Cover

    • D.

      Shooting Star

    Correct Answer
    D. Shooting Star
    Explanation
    A shooting star is a bearish candlestick pattern that indicates a potential reversal in an uptrend. It forms when the price opens near its high, rallies during the session, but then closes near its open, creating a long upper shadow and a small real body. This pattern suggests that buyers initially pushed the price higher, but sellers regained control by the end of the session, signaling a possible trend reversal. Therefore, the given candlestick is a shooting star.

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  • 8. 

    This candlestick formation is a ___________________.

    • A.

      Dark Cloud Cover

    • B.

      Bullish Engulfing

    • C.

      Doji

    • D.

      Bearish Harami

    Correct Answer
    A. Dark Cloud Cover
    Explanation
    The correct answer is Dark Cloud Cover. Dark Cloud Cover is a bearish candlestick pattern that occurs during an uptrend. It is formed when a long bullish candle is followed by a bearish candle that opens above the previous day's close and closes below the midpoint of the bullish candle. This pattern suggests a potential reversal in the market as the bears start to take control after a strong bullish move.

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  • 9. 

    This candlestick is a __________________.

    • A.

      Cross

    • B.

      Bullish Doji

    • C.

      Hammer

    • D.

      Doji

    Correct Answer
    D. Doji
    Explanation
    A Doji is a type of candlestick pattern that indicates indecision in the market. It is characterized by a small body with equal or nearly equal open and close prices. The length of the upper and lower shadows can vary. The Doji suggests that neither the buyers nor the sellers were able to gain control during the trading session, resulting in a standoff. This candlestick pattern often signals a potential trend reversal or a period of consolidation in the market.

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  • 10. 

    The top line represents _________________.

    • A.

      Gaps

    • B.

      Resistance

    • C.

      Support

    • D.

      Resilience

    Correct Answer
    B. Resistance
    Explanation
    The top line represents resistance. Resistance is a concept in technical analysis that refers to a price level at which the stock or market tends to stop rising and starts declining. It acts as a barrier, preventing the price from moving higher. When the price approaches the resistance level, it may struggle to break through and could reverse its direction. Traders and investors often use resistance levels to make decisions about buying or selling stocks.

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  • 11. 

    The bottom line represents _______________________.

    • A.

      Resilience

    • B.

      Resistance

    • C.

      Support

    • D.

      Gaps

    Correct Answer
    C. Support
    Explanation
    The bottom line represents support. This means that it represents the foundation or backing that is provided to something or someone. It signifies the strength and stability that is necessary for resilience and resistance. It can also indicate the presence of assistance or aid in overcoming challenges or obstacles. The bottom line serves as a base or platform to ensure stability and success.

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  • 12. 

    Consolidation is a stock that is neither _______________ nor _______________ a large price trend.

    • A.

      Beginning / Ending

    • B.

      Continuing / Reversing

    • C.

      Stopping / Starting

    • D.

      Completing / Restarting

    Correct Answer
    B. Continuing / Reversing
    Explanation
    Consolidation is a stock that is neither continuing nor reversing a large price trend. When a stock is in consolidation, it means that it is trading within a range without making significant upward or downward movements. It is essentially a period of rest or pause in the price action, where the stock is neither continuing its previous trend nor reversing it. This can be seen as a period of indecision or equilibrium in the market, where buyers and sellers are balanced and waiting for a catalyst to drive the price in a particular direction.

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  • 13. 

    Bullish consolidation consists of higher lows w/ defined resistance.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Bullish consolidation refers to a period of time in the market where the price of a stock or security is temporarily stable or slightly decreasing, but with a pattern of higher lows. This indicates that buyers are stepping in at higher prices each time, showing strength and potential for an upward move. Additionally, there is a defined resistance level, which means there is a price point at which selling pressure may increase. Therefore, the given statement is true as it accurately describes the characteristics of bullish consolidation.

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  • 14. 

    Resistance zones are prices that a stock will not have trouble surpassing in the future.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Resistance zones are actually prices that a stock may have difficulty surpassing in the future. These zones act as a barrier or ceiling, where the stock's price tends to stall or reverse its upward movement. Traders and investors often use resistance zones to determine potential selling points or to set stop-loss orders. Therefore, the correct answer is False, as resistance zones indicate levels that a stock may struggle to surpass.

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  • 15. 

    The _____________ allows for optimal price entry and exit on short-term momentum.

    • A.

      20ema

    • B.

      50sma

    • C.

      13ema

    • D.

      55sma

    Correct Answer
    C. 13ema
    Explanation
    The 13ema (13-day exponential moving average) allows for optimal price entry and exit on short-term momentum because it is a moving average that gives more weight to recent price data. This means that it is more responsive to short-term price movements and can help identify short-term trends and momentum. Traders often use the 13ema as a technical indicator to make decisions on when to enter or exit a trade based on short-term momentum.

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  • 16. 

    In the Core3 Platform Setup the 50sma is blue.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The given statement is "In the Core3 Platform Setup the 50sma is blue." The correct answer is False. This means that in the Core3 Platform Setup, the 50sma (simple moving average) is not blue. The statement implies that the color of the 50sma in the setup is not blue, suggesting that it could be a different color.

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  • 17. 

    A breakout is when a share price ______________________________________.

    • A.

      Moves outside a defined resistance level w/ increased volume.

    • B.

      Moves outside a defined resistance level w/ decreased volume.

    • C.

      Moves outside a defined support level w/ increased volume.

    • D.

      Moves outside a defined support level w/ decreased volume.

    Correct Answer
    A. Moves outside a defined resistance level w/ increased volume.
    Explanation
    A breakout is when a share price moves outside a defined resistance level with increased volume. This means that the price of the share has surpassed a level at which it previously faced resistance, indicating that there is strong buying pressure and demand for the stock. The increased volume suggests that there is significant market participation and interest in the stock, further supporting the breakout.

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  • 18. 

    Wilder's RSI only shows when a stock is oversold.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Wilder's RSI does not only show when a stock is oversold. The Relative Strength Index (RSI) developed by J. Welles Wilder is a momentum oscillator that measures the speed and change of price movements. It indicates whether a stock is overbought or oversold, but it also provides other valuable information such as trend strength and potential trend reversals. Therefore, the statement that Wilder's RSI only shows when a stock is oversold is incorrect.

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  • 19. 

    The marketmaker who dominates the price action is called the:

    • A.

      Asp

    • B.

      L2

    • C.

      Top Dog

    • D.

      Ax

    Correct Answer
    D. Ax
    Explanation
    The marketmaker who dominates the price action is called "Ax". This term is commonly used in trading to refer to the marketmaker who has the largest position or the most influence in a particular security. The "Ax" is often seen as the key player in determining the direction and movement of prices in the market.

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  • 20. 

    Which of the following is not an index?

    • A.

      Dow Jones Industrial Average

    • B.

      S&P 500

    • C.

      S&D 500

    Correct Answer
    C. S&D 500
    Explanation
    The correct answer is S&D 500. The Dow Jones Industrial Average and S&P 500 are both well-known stock market indices that track the performance of a specific set of stocks. However, S&D 500 is not a recognized index. It is likely a typo or a made-up term, as there is no widely recognized index with this name.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 03, 2021
    Quiz Created by
    Themes
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