Stock Indexes Quiz

What is the Dow Jones index?

• The Dow Jones index is a stock market index that measures the performance of 30 large, publicly-owned companies trading on the New York Stock Exchange and the NASDAQ.

• The Dow Jones index is only based on the London Stock Exchange

• The Dow Jones index is a cryptocurrency

• The Dow Jones index measures the performance of 100 companies

How are stocks and equities related?

• Stocks and equities are related as they both represent ownership in companies, with stocks specifically representing ownership in a single company.

• Stocks and equities are completely unrelated financial instruments.

• Stocks represent ownership in companies, while equities represent ownership in commodities.

• Stocks and equities have no value in the financial market.

Explain how a stock index is like a scorecard.

• A stock index is like a scorecard because it is used for tracking individual stock performance.

• A stock index is like a scorecard because it only includes tech companies.

• A stock index is like a scorecard because it provides a snapshot of the overall performance of a group of stocks.

• A stock index is like a scorecard because it predicts future stock prices.

What is the Wilshire 5000 index?

• A measure of the top 5000 performing stocks in the United States

• A currency exchange rate index for the US dollar

• An index tracking the performance of 5000 companies in the technology sector

• A market-capitalization-weighted index representing the total market value of all stocks actively traded in the United States.

Why are stock indexes important in the financial world?

• Stock indexes are only used by individual investors

• Stock indexes provide a snapshot of market performance, track sector performance, benchmark investment performance, and facilitate index fund creation.

• Stock indexes have no impact on investment decisions

• Stock indexes predict future market trends accurately

What does the performance of a stock index indicate?

• It indicates the number of employees in a company.

• It indicates the weather forecast for the week.

• It indicates the overall value and movement of a specific group of stocks in the market.

• It indicates the price of gold in the market.

How are stock indexes used by investors?

• Stock indexes are used by investors to predict future stock prices.

• Stock indexes are used by investors to determine the weather forecast.

• Stock indexes are used by investors to bake cookies.

• Stock indexes are used by investors to track the performance of a specific group of stocks or the overall market.

Discuss the significance of the Dow Jones index in the stock market.

• The Dow Jones index is significant as it provides a snapshot of the stock market's performance and influences investor sentiment and economic outlook.

• The Dow Jones index has no impact on the economy

• The Dow Jones index is only relevant for local businesses

• The Dow Jones index is used for weather forecasting

What are the key differences between stocks and stock indexes?

• Stocks represent ownership in individual companies, while stock indexes are measures of the performance of a group of stocks.

• Stocks and stock indexes are interchangeable in investment strategies.

• Stocks and stock indexes both represent ownership in individual companies.

• Stocks and stock indexes have the same level of risk.

How does the Wilshire 5000 index differ from other stock indexes?

• The Wilshire 5000 index includes all actively traded stocks in the US, not just the largest companies.

• The Wilshire 5000 index only includes tech stocks

• The Wilshire 5000 index tracks commodities instead of stocks

• The Wilshire 5000 index is only based on European companies