Test Your Basic Knowledge On Stock Market

15 Questions

Settings
Please wait...
Stock Market Quizzes & Trivia

Questions and Answers
  • 1. 
    • A. 

      The Stock Market is a market where people bet on race horses to gain some money.

    • B. 

      The Stock Market is a market where people buy products which the merchants have a lot of stock of

    • C. 

      The Stock Market is a market where people can buy stocks which are shares of companies.

  • 2. 
    • A. 

      The bear means stocks are falling and the bull means stocks are going up.

    • B. 

      They are signs that the Stock Market is opened and closed.

    • C. 

      The bear means stocks are rising and the bull means stocks are falling.

  • 3. 
    How many types of stocks there are?
    • A. 

      2

    • B. 

      4

    • C. 

      5

    • D. 

      8

  • 4. 
    What factors affect stock market?
    • A. 

      Natural Disasters

    • B. 

      Inflation

    • C. 

      Labor strike

    • D. 

      Terrorist attack

    • E. 

      Changes in oil price

    • F. 

      Internal reformation within one company

    • G. 

      Annual leave of CEO of a company

  • 5. 
    • A. 

      Earnings are used for reinvestment in order to maintain the growing trend of the stocks

    • B. 

      No dividends

    • C. 

      They are traded below its market price

    • D. 

      The stocks are consistently profitable with a dividend payment

  • 6. 
    Penny stocks refer to low-priced stock investments. These stocks are usually traded in stock exchange.
    • A. 

      True

    • B. 

      False

  • 7. 
    ___________________ equips with the potential of a superior level of earnings in the future. The earnings are used for reinvestment in order to maintain the growing trend of these stocks. Therefore, growth stocks do not pay dividends.
  • 8. 
    Value stocks are usually traded below the market price. They are considered having the low-term potential growth because of long-term growth of company associated with the stocks.
    • A. 

      True

    • B. 

      False

  • 9. 
    An "illliquid market"is also called a thin market and is characterized by:
    • A. 

      The lack of buyers and sellers

    • B. 

      The lack of alternative investment venues

    • C. 

      The lack of stocks traded

  • 10. 
    The breadth of the market shows
    • A. 

      The number of stocks traded out of the ones listed

    • B. 

      The volume of trades

    • C. 

      The difference between buying and selling

  • 11. 
    An "Ask" and "Bid" is the _______ price and _________ price.
  • 12. 
    • A. 

      The value of the company excluding its tangible assets

    • B. 

      The value of the company as done by the external appraiser

    • C. 

      Theoretical value of company if all assets are liquidated or sold at prices shown on balance sheet

  • 13. 
    An investment is well-hedged if
    • A. 

      An investor limits losses on a certain stock by establishing an opposite position in the same stock

    • B. 

      It is protected against losses

    • C. 

      Both A and B

  • 14. 
    What does "Short Selling" mean?
    • A. 

      Selling securities that the investor has borrowed and prepared to buy back later at a lower price

    • B. 

      An trading strategy used to profit from a price decline

    • C. 

      Both A and B

  • 15. 
    The public usually buy stocks from _________  ___________.