Stocks and The Stock Market

What does the term "stock" refer to in finance?

• A type of currency

• Ownership in a company

• A government-issued bond

• A type of insurance policy

Which of the following represents a publicly-traded company?

• A local bakery owned by a family

• A tech startup with venture capital funding

• A multinational corporation listed on a stock exchange

• A small law firm with private investors

What does the term "stock market" refer to?

• A physical location where stocks are bought and sold

• The global network of all stock exchanges

• A government agency that regulates stock trading

• An online platform for cryptocurrency trading

Which of the following factors can influence the price of a stock?

• Political events

• Economic indicators

• Company performance

• All of the above

What does the acronym "NYSE" stand for in the context of finance?

• New York Securities Exchange

• National Yield and Stock Exchange

• New York Stock Exchange

• National Yield and Securities Exchange

What is the significance of the Dow Jones Industrial Average (DJIA)?

• It represents the performance of 500 large-cap stocks

• It tracks the stock prices of 30 major companies

• It measures the performance of technology stocks

• It indicates the average dividend yield of industrial companies

What is the function of a stockbroker?

• To issue new shares of stock to the public

• To manage a company's financial records

• To buy and sell stocks on behalf of investors

• To audit financial statements for accuracy

What is the primary difference between common stock and preferred stock?

• Common stockholders have voting rights, while preferred stockholders do not.

• Preferred stockholders receive dividends before common stockholders.

• Common stockholders are guaranteed a fixed dividend payout.

• Preferred stockholders have priority in bankruptcy proceedings.

What is a dividend?

• A tax levied on stock transactions

• A payment made to shareholders from company profits

• The price paid to buy a share of stock

• A fee charged by a stockbroker for trading

What does it mean when a stock is said to be "volatile"?

• Its price changes frequently and unpredictably

• It consistently generates high returns for investors

• It is traded on multiple stock exchanges

• It is backed by a stable and reliable company