Characters Of The Rules Of The Game
Would you like to learn more about characters of the rules of the game? Simply take this quiz and learn more about it!
Questions and Answers
- 1.
Each investor begins with $_______________ to invest.
Explanation
Each investor begins with $100,000 to invest.Rate this question:
- 2.
The Stock Market Game pays dividends.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement "The Stock Market Game pays dividends" is true. Dividends are payments made by a company to its shareholders as a reward for their investment. In the context of the Stock Market Game, it is likely that participants receive virtual dividends based on the performance of the stocks they have chosen. This allows players to simulate the experience of investing in the stock market and understand the concept of dividends.Rate this question:
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- 3.
Trades entered on a Friday at 6:30pm will receive the closing price for Monday (for End of Day Game).
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement is true because trades entered on a Friday at 6:30pm will not be executed until the market opens on Monday. Therefore, the closing price for Monday will be applied to these trades in the End of Day Game.Rate this question:
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- 4.
All buy orders must be a minimum of 50 shares.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because not all buy orders must be a minimum of 50 shares. Buy orders can vary in size depending on the individual's preferences and the rules set by the exchange. There may be a minimum order size requirement set by the exchange, but it does not necessarily have to be 50 shares.Rate this question:
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- 5.
A broker's fee of _____% is charged for all buy and sell orders.
Correct Answer
2
2%Explanation
The broker's fee for all buy and sell orders is 2%. This means that for every transaction made through the broker, 2% of the total value of the order is charged as a fee.Rate this question:
- 6.
For an investory "going on margin" (borrowing on the equity in your account), a _____% fee is charged for money borrowed.
Correct Answer
7
7%Explanation
When an investor "goes on margin" by borrowing on the equity in their account, a fee of 7% is charged for the money borrowed.Rate this question:
- 7.
SMG does not permit buying stocks that trade below $____ per share.
Correct Answer
5
$5
5.00
$5.00Explanation
SMG does not permit buying stocks that trade below $5 per share. This means that investors using SMG cannot purchase stocks that are priced lower than $5. The answer options provided all indicate a value of $5 or lower, which aligns with the restriction set by SMG.Rate this question:
- 8.
Cash balances (money not yet spent) will be credited at an annual rate of ____%.
Correct Answer
2
2%Explanation
Cash balances will be credited at an annual rate of 2.2%.Rate this question:
- 9.
Investors can only enter trades between 9:00AM and 4:00PM Eastern Standard Time.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because investors can enter trades outside of the 9:00AM to 4:00PM Eastern Standard Time window. This is because there are pre-market and after-hours trading sessions available, which allow investors to trade before the market opens or after it closes. These extended trading hours provide investors with more flexibility and opportunities to participate in the market.Rate this question:
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- 10.
If an investor sells 200 shares of their Intel stock at $32 per share, they will be charged a broker's fee of $____ for the transaction.
Correct Answer
128
128.00
$128.00
$128Explanation
The question asks for the broker's fee charged for selling 200 shares of Intel stock at $32 per share. The correct answer is $128. This can be calculated by multiplying the number of shares (200) by the price per share ($32), resulting in a total transaction value of $6,400. The broker's fee is then calculated as a percentage of the transaction value, which is typically around 2%. 2% of $6,400 is $128, hence the correct answer.Rate this question:
- 11.
Investors must liquidate their portfolios at the end of the Game (liquidate means selling their stock to convert it back into cash).
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Investors do not necessarily have to liquidate their portfolios at the end of the game. Liquidating a portfolio means selling the stocks and converting them back into cash, which may not be the preferred option for all investors. Some investors may choose to hold onto their stocks for a longer term or reinvest their earnings. Therefore, the statement is false.Rate this question:
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- 12.
Investors can only trade common and preferred stock on the New York Stock Exchange, Nasdaq Stock Market, and the American Stock Exchange.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The given statement is false. Investors can trade not only common and preferred stock but also other financial instruments such as bonds, options, and exchange-traded funds (ETFs) on the New York Stock Exchange, Nasdaq Stock Market, and the American Stock Exchange. Therefore, the correct answer is false.Rate this question:
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- 13.
Interest earned (and/or owed) is posted to the portfolio daily.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because interest earned (and/or owed) is not posted to the portfolio daily. Interest is typically calculated and posted on a monthly or quarterly basis, depending on the terms of the investment or loan. Posting interest daily would require constant monitoring and adjustments, which is not a common practice.Rate this question:
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