Stock Market Quiz Review

A bear market is when prices are steadily increasing over time.

• True

• False

A public company sells shares of stock, but doesn’t have to disclose financial information to investors and the Securities Exchange Commission (SEC).

• True

• False

The NASDAQ is a stock exchange that is a network of computers which primarily trades technology stocks.

• True

• False

Investors that have lower risk tolerances prefer blue chip stocks over penny stocks.

• True

• False

The Dow Jones Industrial Average and S&P 500 are all examples of stock exchanges.

• True

• False

Common stockholders have voting rights.

• True

• False

Company news, new products, and earnings are all factors that affect a stock’s price.

• True

• False

In addition to executing stock trades, a discount broker provides their clients with in-depth research and recommendations on what stocks to buy.

• True

• False

When you sell a stock for more than you buy it for, you have a capital loss.

• True

• False

Fixed income and preferred stocks are considered conservative investments.

• True

• False