Stock Market Quiz

What is a stock?

• A type of bond

• Ownership in a piece of a corporation/company

• A fixed income investment

• A loan to a company

What is a dividend?

• A vote in company decisions

• A company's profit shared with shareholders/investors

• The interest paid on a bond

• A fee for buying stocks

Which of the following is a common investing strategy?

• Timing the market

• Buy high, sell low

• Dollar-cost averaging

• Only investing in bonds

What is meant by "portfolio diversification"?

• Investing all your money in one asset

• Buying stocks from different sectors

• Trading stocks frequently

• Focusing on bonds only

What is a bear market?

• A market showing rising stock prices

• A market showing declining stock prices

• A market with stable stock prices

• A market dominated by bond sales

What is the primary purpose of risk management in trading?

• To guarantee a profit

• To minimize potential financial losses

• To predict stock prices

• To buy as many stocks as possible

Why might an investor choose to use a "limit order"?

• To ensure the purchase or sale of a stock at a specified price

• To buy as many shares as possible without a price limit

• To sell shares at any price

• To delay buying shares indefinitely

What is a "bull market"?

• A market with declining stock prices

• A market with rapidly fluctuating prices

• A market with rising stock prices

• A market focused solely on commodities

What does the term "bull market" refer to?

• A market in decline.

• A market showing sustained increase in stock prices.

• A market dominated by bearish investors.

• A market where stocks are traded for animals.

What is a stock market?

• A place where groceries are sold.

• A platform for the exchange of services.

• A venue where stocks and bonds are traded.

• A website for buying and selling cars.