ASX Sharemarket Quiz

What does ASX stand for?

• Australian School Exchange

• Australian Securities Exchange

• American Securities Exchange

• Australian Stock Exchange

A ______ is a unit of ownership in a company.

• Share

• Security

• Stock

• Sharemarket

A ______ is the price a buyer is willing to pay for a particular share.

• Bear

• Bull

• Bid

• Buy

Another word for sector is..

• Investment

• Industry

• Specific

• Similar

What is the key principle of investing in the sharemarket?

• Make as much money

• Manage risk

• Buy cheap

• Sell High

A portion of a company’s earnings that is paid to shareholders, on a quarterly or annual basis is a..

• Dividend

• Interest

• Compound Interest

• Capital gain

What do we need to research before investing in a company?

• News Reports

• Announcements on the ASX

• Quarterly/Annual Reports

• All of the above

Why do people trade in shares?

• So they don't need a full-time job

• To buy a large amount of shares in one company and never sell or check them, hoping they might become rich

• To become an accountant

• To generate wealth through dividends or potential share price growth

When deciding to buy shares in the ASX Game, we should...

• Only invest in one business

• Not do any research on the company and its history

• Invest in around 25 different mediocre companies but not check their progress

• Stick to a few profitable companies, after doing research on the companies history.

Diversification means spreading investments to reduce risk 

• True
• False