Stock Market Basics Quiz

10 Questions

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Stock Market Basics Quiz

Choose the most appropriate option from each question.


Questions and Answers
  • 1. 
    • A. 

      It is a company that invests in the stock market.

    • B. 

      It is an index of the 500 leading stocks in each industry traded in all markets.

    • C. 

      It is an index of the 30 leading stocks in each industry traded on the New York Stock Exchange.

    • D. 

      It is an index that gives general information about the performance of each stock.

    • E. 

      All of the above.

  • 2. 
    2.  Two of the founders of the DJIA were
    • A. 

      Edward Jones and Charles Dow

    • B. 

      Alexander Hamilton and Charles Bernstegen

    • C. 

      J.P. Morgan and Chales Dow

    • D. 

      Bill Gates and Charles Dow

    • E. 

      Alexander Hamiltion and Charles Dow

  • 3. 
    Name one company on the DJIA today.
    • A. 

      AT&T

    • B. 

      Woolworths

    • C. 

      Sears & Roebuck

    • D. 

      U.S. Steel

    • E. 

      Disney

  • 4. 
    Name one company listed on the DJIA in 1929.
    • A. 

      Microsoft

    • B. 

      United Airlines (UAL)

    • C. 

      International Harvester

    • D. 

      Disney

    • E. 

      Intel

  • 5. 
    In which  year did a stock market crash have no effect on the overall economy?
    • A. 

      2008

    • B. 

      1987

    • C. 

      1929

    • D. 

      2001

    • E. 

      1945

  • 6. 
    What is a stock?
    • A. 

      An IOU of a corporation.

    • B. 

      A piece of ownership in a corporation.

    • C. 

      Total ownership of a corporation.

    • D. 

      A retirement investment.

    • E. 

      None of the above.

  • 7. 
    When you purchase a stock for $10.00 and then sell it one month later at $20.00 you are
    • A. 

      Buying low and selling high

    • B. 

      Buying high and selling low

    • C. 

      Short selling low and short covering high

    • D. 

      Short selling high and short covering low

    • E. 

      Gaining dividends

  • 8. 
    When you recieve corporate profits from your ownership of stock you are
    • A. 

      Buying low and selling high

    • B. 

      Buying high and selling low

    • C. 

      Short selling low and short covering high

    • D. 

      Short selling high and short covering low

    • E. 

      Gaining dividends

  • 9. 
    What type of stocks would you want to short sell?
    • A. 

      Stock with the potential to gain value in the future

    • B. 

      Stock with high corporate profits

    • C. 

      Stock that may be experiencing lost value in the future

    • D. 

      Stock that will keep a constant value

    • E. 

      Never, it's too risky

  • 10. 
    What professions are associated with financial markets?
    • A. 

      Stock broker

    • B. 

      All of the options listed

    • C. 

      Investment banker

    • D. 

      Commodities broker

    • E. 

      Bond dealer