Stock Market Quiz

What does it mean to buy a company's stock?

• You are lending money to the company.

• You are purchasing a portion of the company.

• You are buying the company's products.

• You are becoming an employee of the company.

What is a dividend?

• A fee paid to stockholders for holding the stock.

• A portion of the company's profits paid to stockholders.

• The initial price of a stock.

• The total value of all outstanding shares.

Which of the following best describes a stockholder?

• A person who manages the company's operations.

• A person who owns a share of the company's stock.

• A person who lends money to the company.

• A person who buys the company's products.

What is the primary market?

• A market where stocks are traded between investors.

• A market where new stocks are issued by companies.

• A market where commodities are traded.

• A market where bonds are issued.

What is the secondary market?

• A market where new stocks are issued by companies.

• A market where stocks are traded between investors.

• A market where companies buy back their own stock.

• A market where only government bonds are traded.

What is an IPO (Initial Public Offering)?

• The first sale of stock by a private company to the public.

• The first dividend payment made by a company.

• The first time a company buys back its own stock.

• The first time a company issues bonds.

What does it mean if a stock price increases?

• The company is issuing more shares.

• The company is paying higher dividends.

• The demand for the stock has increased.

• The company is buying back its own shares.

What is a stock exchange?

• A place where commodities are traded.

• A place where stocks are issued by companies.

• A place where stocks are bought and sold.

• A place where companies are formed.

What is a stockbroker?

• A person who manages the company's operations.

• A person who buys and sells stocks on behalf of investors.

• A person who lends money to the company.

• A person who buys the company's products.

What is market capitalization?

• The total value of a company's outstanding bonds.

• The total value of a company's outstanding shares.

• The total revenue of a company.

• The total profit of a company.