Matchday 2

What is the primary focus of a trader?

• Long-term wealth building with minimal intervention

• Making quick profits through short-term market movements

• Buying assets and holding them for years

• Relying on a professional fund manager to manage assets

Which approach is generally considered to involve less risk?

• Trading, because of the potential for quick gains

• Trading, due to frequent market monitoring

• Investing, because of a long-term focus and patience

• Investing, due to frequent adjustments based on market trends

Which of the following trading styles focuses on making quick profits by reacting to short-term price movements?

• Positional Trading

• Swing Trading

• Intraday Trading

• Growth investing

What type of investor focuses on finding undervalued stocks and waiting for their value to rise over time?

• The Hybrid Investor

• The Value Investor

• The Growth Investor

• The Dividend Investor

Which of the following indices tracks the performance of the top 50 companies in India?

• S&P 500

• Sensex

• Nifty 50

• Hang Seng

The Nikkei 225 index primarily tracks companies from which country?

• China

• India

• Japan

• Germany

Which type of stock is considered ideal for income-focused investors seeking regular dividend payouts?

• Growth Stocks

• Penny Stocks

• Dividend Stocks

• Cyclical stocks

What is the market capitalization range for a company to be considered a Mid Cap stock?

• Below Rs. 5,000 crore

• Between Rs. 5,000 crore and Rs. 20,000 crore

• Above Rs. 20,000 crore

• No specific range

How does a stock split typically affect the stock price immediately after the announcement?

• The stock price increases significantly.

• The stock price decreases in proportion to the split ratio.

• The stock price remains unchanged.

• The stock price becomes more volatile without any clear trend.

What is the likely impact on stock prices when a company announces a buyback (share repurchase)?

• Stock price typically decreases due to reduced earnings per share (EPS).

• Stock price typically increases due to reduced number of shares outstanding.

• Stock price remains unchanged as buybacks have no effect on market value.

• Stock price declines because the company is using funds for repurchases instead of growth.