Stock Market Unit Test

WHAT DOES A STOCK REPRESENT?

• A loan you make to a company that they must pay back

• A percentage of ownership of a company including assets and profits

• A contract for a company's goods or services

• Stocks are just tools used by investors to make money

What is a preferred stock?

• Stock that gets paid dividends first

• Stock that lets its owners vote in shareholder meetings

• Stock that is always worth the most

• Stock that is only owned by managers

WHERE WERE STOCKS FIRST CREATED?

• Egypt

• Rome

• London

• New York

What makes up a ticker symbol in the United States?

• Between 1 and 5 Letters or Numbers

• The first 3 letters of a company's name

• Between 1 and 5 letters only

• Between 1 and 7 numbers only

Why did investors start using ticker symbols?

• It was faster to move news using telegraphs with short names

• Investors liked to use "Text Speak" to communicate in code

• To confuse "casual" investors and keep trading to professionals

• It makes it faster to look up multiple companies at a time on a computer

WHY WOULD A STOCK HAVE A ".A" AT THE END OF ITS TICKER SYMBOL?

• There are multiple classes of stock for this company

• The company has filed for bankruptcy

• This stock currently has special trading rules

• This would always represent "Preferred Stock"

WHAT DOES A STOCK QUOTE REPRESENT?

• A famous quote from that company's CEO

• The last price a seller and buyer agreed to to make a trade

• The current price/asset ratio of a stock

• The current attitude professional stock analysts have towards a company

WHICH OF THESE ITEMS CAN YOU FIND IN A STOCK QUOTE?

• Current Assets

• The date the stock first was sold to the public

• Historical prices for a stock

• The stock's current daily volume

WHAT IS "NET CHANGE"?

• The total amount a stock's price has changed since the previous trading day

• The total price of a stock, in cents

• The total amount a stock's price has changed since the market opened

• The change in a stock's value over the last year

WHAT DOES IT MEAN TO "DIVERSIFY" YOUR PORTFOLIO?

• To hold more than 1 stock

• For your stocks to not be all in the same area of the economy

• To have a mix between stocks, mutual funds, or other securities

• To hold more than 1 stock & For your stocks to not be all in the same area of the economy