Basics Of Stock Market

What does owning a stock represent?

• Debt in a company

• Ownership in a company

• A loan to a company

• None of the above

What is the role of a stock exchange?

• It issues company earnings reports

• It sets stock prices

• It is a platform for buying and selling stocks

• It regulates insider trading

A bull market is characterized by:

• Falling stock prices and pessimism

• Rising stock prices and optimism

• High inflation rates

• Increased insider trading

What does "volatility" in the stock market mean?

• Stable stock prices

• Rapid changes in stock prices

• Declining investor confidence

• Steady growth in stock value

The P/E ratio compares:

• Stock price to company revenue

• Stock price to company earnings

• Company debt to equity

• Dividends to market cap

Market capitalization is calculated as:

• Total earnings of a company

• Total value of a company’s shares

• Total assets of a company

• Annual dividends paid by the company

EPS stands for:

• Earnings Per Stock

• Estimated Price Share

• Earnings Per Share

• Economic Profit Share

Dividends are:

• Payments made to bondholders

• Regular payments to shareholders

• Fees paid to brokers

• Interest payments on debt

An IPO is when:

• A company splits its stock

• A company issues bonds

• A company goes public for the first time

• A company pays dividends for the first time

Bonds are:

• Shares in a company

• Debt instruments issued by companies or governments

• A type of ETF

• Options contracts