Stock Trading Masterclass - 24-25th Aug

Which of the following is the most volatile investment?

• Stocks

• Bonds

• Real estate

• Gold

What is a stock split?

• When a company issues new shares of stock

• When a company issues new shares of stock

• When a company reduces the number of outstanding shares of stock

• When a company increases the number of outstanding shares of stock

Answer explanation

What is the difference between a limit order and a market order?

• A limit order specifies a maximum price while a market order does not

• A limit order specifies a minimum price while a market order does not

• A limit order is executed immediately while a market order is not

• A limit order is executed at the current market price while a market order is not

Answer explanation

Which of the following is not a measure of a stock's volatility?

• Beta

• Alpha

• Standard deviation

• Average true range

Answer explanation

What is short selling?

• Selling stock that you do not own with the hope of buying it back at a lower price.

• Selling stock that you do own with the hope of buying it back at a lower price.

• Buying stock with the hope of selling it at a higher price.

• Buying stock with the hope of holding onto it for the long term.

What is a stop-loss order?

• An order to sell a stock at a specific price.

• An order to buy a stock at a specific price.

• An order to sell a stock if it falls below a specific price.

• An order to buy a stock if it rises above a specific price.

What is a dividend?

• A payment made by a company to its shareholders.

• A payment made by a shareholder to a company.

• A payment made by a company to its employees.

• A payment made by a company to its creditors.

What is a P/E ratio?

• Price-to-earnings ratio

• Price-to-expenses ratio

• Price-to-sales ratio

• Price-to-book ratio

What is the main difference between a stock and a bond?

• Stocks represent ownership in a company, while bonds represent a loan to a company.

• Bonds represent ownership in a company, while stocks represent a loan to a company.

• Both stocks and bonds represent ownership in a company.

• Both stocks and bonds represent a loan to a company.

What is the price-to-earnings (P/E) ratio?

• The ratio of a company's market value to its book value.

• The ratio of a company's earnings per share to its share price.

• The ratio of a company's dividend yield to its share price.

• The ratio of a company's debt to its equity.