Stock Market Quiz: Trivia MCQ!

15 Questions | By Amadeus.gabriel | Updated: Mar 20, 2022 | Attempts: 712

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Questions and Answers

1.

What is the Stock Market?
- 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.

What do the bear and the bull stand for?
- 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 the 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.

Which statement about blue chip stocks is correct?
- 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 to have low-term potential growth because of the long-term growth of the company associated with the stocks.
- A.
  
  True
- B.
  
  False
9.

An "illiquid 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.

Book value refers to
- 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 _________ ___________.