Quiz on Stocks and Shares

What is a "bull" in the stock market?

• An investor expecting prices to fall

• An investor expecting prices to rise

• A person who sells stocks

• A trader who operates daily

What is a "bear" in the stock market?

• An investor expecting prices to rise

• A trader who buys stocks daily

• An investor expecting prices to fall

• A company issuing shares

What does "raising capital" mean?

• Reducing company expenses

• Buying shares from other companies

• Getting money from investors to run a business

• Selling shares at a loss

What is "collateral" in financial terms?

• The profit from selling stocks

• The stock market index

• Assets used to secure a loan

• A type of bond

Who are "institutional investors"?

• Individual stock traders

• Organizations that own a lot of shares

• People who predict market prices

• Small business owners

What does "issue shares" mean?

• To trade shares on the stock market

• To buy shares from other companies

• To offer securities for sale to the public

• To declare bankruptcy

What is the impact of a stock market crash on the economy?

• It only affects the investors

• It leads to rapid economic growth

• It can impact pensions, savings, and loans

• It benefits small businesses

What happens when a "bubble" in the stock market bursts?

• Prices rise steadily

• Prices collapse quickly

• New shares are issued

• Investors profit significantly

What is the role of "day traders"?

• To hold shares for long-term investment

• To trade shares within hours or a single day

• To manage pension funds

• To invest in government bonds

Why might companies issue new shares?

• To increase their share price

• To reduce competition

• To raise capital for expansion

• To pay off debts