Stock Trading Quiz

What does the term "buy" mean in stock trading?

• Getting rid of the shares that you purchased

• Your bid is what you're willing to pay for a stock

• Means to take a position or to buy shares in a company

• A market condition that means stock prices are expected to rise

What is a "bid" in the context of stock trading?

• The difference between what people have to spend and what people want to get

• Means to take a position or to buy shares in a company

• Your bid is what you're willing to pay for a stock

• A market condition that means stock prices are expected to fall

What does "ask" refer to in stock trading?

• What people selling stocks are looking to get for their shares

• The price at which you can cancel your order

• How fast a stock moves up and down

• The price you're willing to sell your shares at

What characterizes a "bull market"?

• A market condition where stock prices are expected to fall

• A market condition where stock prices are expected to rise

• A market condition that indicates high volatility

• A market condition that triggers a market order

What is a "bear market"?

• A market condition that means stock prices are expected to rise

• A market condition that indicates low volatility

• A market condition in which investors expect stock prices to fall

• A market condition that triggers a limit order

What is a "limit order" in stock trading?

• An order that remains effective until the stock reaches a certain price

• An order that provides instruction to execute as quickly as possible

• An order that provides instruction to only execute at or under a purchase price or at or above a sale price

• An order that means your bid is what you're willing to pay for a stock

What does "market order" mean?

• An order that specifies the exact price to buy or sell

• An order that provides instruction to execute as quickly as possible, at the present or market price

• An order that is only good for the day when it's placed

• An order that means your bid is what you're willing to pay for a stock

What is a "good till cancelled order" (GTC)?

• An order that is executed immediately at the current market price

• An order that means that your order stands until you cancel it and it will be executed whenever the stock comes to your price

• An order that is only good for the day when it's placed

• An order that provides instruction to only execute at or under a purchase price or at or above a sale price

What is a "day order" in the context of stock trading?

• An order that is executed immediately at the current market price

• An order that remains effective until the stock reaches a certain price

• An order that is only good for the day when it's placed

• An order that means that your order stands until you cancel it

How is "volatility" defined in stock trading?

• The difference between what people have to spend and what people want to get

• The price at which you can cancel your order

• How fast a stock moves up and down

• The price you're willing to sell your shares at