Stock Market Basics Quiz
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Choose the most appropriate option from each question.
- 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
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