The Stock Market

What is the purpose of a ticker?

• It helps identify the P/E ratio of a stock

• It is the name of the stock that can be found on the stock exchange

• It is used to help investors understand the volatility of the stock

• It helps to identify the opening and closing prices of a stock

What does the term IPO mean?

• Initial public offering

• Investing principle offering

• Investment paradigm operations

• Initial principle offering

What does the term bull market suggest about stock prices?

• That investors believe that the market will remain stagnant

• That investors believe that market prices will increase

• That investors believe that the market prices will decrease

• That the a collection of bulls has been unleased on the market and investors should start running for their lives

What is a dividend?

• A dividend is a sum of money that investors pay to the company to buy stocks

• A dividend is the sum of money that companies pay to investors who buy their stock

• A dividend is a principal payment that bonds used to pay investors

• A dividend is a credit that investors use to buy on margin

Which of the following ideas are reasons why individuals should invest money into the stock market?

• Purchasing power parity

• It is an easy and safe way to make money

• The stock market has historically increased throughout the last century

• To counteract the rise of inflation

Which definition best explains the idea of a bond?

• A business that lists its self on the stock exchange

• A government/business who raises money by asking for loans from investors.

• An investor who takes loans from a business and pays back in principle

• A type of dividend that is paid to investors

What is the line called that shows the fluctuation of the stock prices throughout the day?

• The line of resistance

• The line of support

• The trend line

• The stock line

If you had a company that was selling for $30 per share and had a EPS (Earning per share) of $10, what would the PE Ratio be?

• 30

• 300

• 3

• 10

Is this company currently over-valued?

• Yes

• No

• It is a fair evaluation

• I don't know which one to pick

Is this company over-valued?

• Yes

• No

• It is a fair evaluation

• I am so confused