Stock Market Quiz

What does it mean when a company goes public? Why do they do it?

• It means the company is open to the public for tours.

• It means the company has issued shares of stock to be traded on public stock exchanges.

• It means the company is owned by the government.

• It means the company is closing down.

What are some ways for a company to raise money?

• Issuing stocks, issuing bonds, bank loans, retained earnings, venture capital or private equity investments.

• Selling products, issuing bonds, bank loans, retained earnings, venture capital or private equity investments.

• Issuing stocks, issuing bonds, selling products, retained earnings, venture capital or private equity investments.

• Issuing stocks, issuing bonds, bank loans, selling products, venture capital or private equity investments.

What is the profit you make on the sale of stock called?

• Dividend

• Interest

• Capital gain

• Revenue

What agency regulates the stock market?

• Federal Reserve

• Securities and Exchange Commission (SEC)

• Internal Revenue Service (IRS)

• Department of Commerce

Define S&P (Standard & Poor's 500 Index).

• A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

• A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

• A stock market index that measures the stock performance of 100 large companies listed on stock exchanges in the United States.

• A stock market index that measures the stock performance of 500 small companies listed on stock exchanges in the United States.

What is a bond? When you purchase a bond, the bond represents what to the company that issued it?

• A bond is a fixed income instrument that represents a loan made by an investor to a borrower. It represents debt or a liability to the issuing company.

• A bond is a fixed income instrument that represents a share in the company. It represents equity to the issuing company.

• A bond is a variable income instrument that represents a loan made by an investor to a borrower. It represents debt or a liability to the issuing company.

• A bond is a variable income instrument that represents a share in the company. It represents equity to the issuing company.

Is the S&P a stock market?

• Yes, it is a stock market.

• No, it is an index that tracks the performance of 500 large-cap companies listed on stock exchanges in the US.

• Yes, it is a stock market that lists 500 large-cap companies.

• No, it is an index that tracks the performance of 30 large-cap companies listed on stock exchanges in the US.

List the 3 major indexes below:

• S&P 500, NASDAQ Composite, Dow Jones Industrial Average (DJIA)

• S&P 500, NASDAQ Composite, AMEX

• S&P 500, AMEX, Dow Jones Industrial Average (DJIA)

• NASDAQ Composite, AMEX, Dow Jones Industrial Average (DJIA)

If more people want to buy a stock (demand) than sell it (supply), then the price moves ________.

• Down

• Up

• Stays the same

• Fluctuates randomly

What does IPO stand for?

• Initial Public Offering

• Initial Private Offering

• Internal Public Offering

• International Public Offering