Stock Market Basics Quiz

What is a primary benefit of investing in equities?

• Capital Gains over Long-Term

• Guaranteed returns

• No risk involved

• Immediate cash flow

Which of the following is NOT a sector in the stock market?

• Healthcare

• Utilities

• Transportation

• Consumer Discretionary

What is the purpose of opening a CDP account?

• To manage personal finances

• To hold shares bought in the local stock market

• To invest in foreign stocks

• To trade cryptocurrencies

Which risk is associated with rising interest rates?

• Sector-specific Risk

• Interest Rate Risk

• Inflation Risk

• Volatility Risk

What is a common method to manage risks in investing?

• Avoiding all investments

• Diversification

• Focusing only on high-risk stocks

• Investing all funds in one stock

What is the main function of a stock exchange?

• To facilitate the buying and selling of stocks

• To provide loans to businesses

• To manage government bonds

• To regulate interest rates

Which of the following is a characteristic of a bear market?

• Declining stock prices

• High trading volume

• Rising stock prices

• Stable stock prices

What does the term 'dividend' refer to in investing?

• A measure of market volatility

• A strategy for risk management

• A payment made to shareholders

• A type of stock