Stock Market Quiz

What is the primary purpose of the stock market?

• To store money for investors.

• To allow companies to raise capital and for investors to build wealth.

• To regulate the economy.

How does owning a share in a company benefit the shareholder?

• They receive guaranteed profits.

• They become part-owners of the company and may earn dividends or capital gains.

• They can influence all company decisions.

What does a rise in stock price typically indicate?

• Increased demand for the stock.

• A decrease in the company’s value.

• The stock is no longer available to buy.

Which of the following is NOT a stock exchange?

• NYSE

• NASDAQ

• Amazon

Why do companies sell shares?

• To distribute profits among shareholders.

• To raise money for growth, operations, or debt repayment.

• To guarantee higher stock prices.

True or False: The value of a stock is solely based on a company’s financial performance.

If a stock price drops significantly, what might it indicate?

• Low demand or negative news about the company.

• High demand for the stock.

• A rise in the overall market.

What are dividends?

• A company’s repayment to shareholders for their investment.

• A portion of a company’s profits shared with shareholders.

• A guaranteed return on investment.

Which of these factors can influence stock prices the most?

• Weather conditions.

• Economic data like inflation rates or earnings reports.

• The number of shares issued by other companies.

What’s the key difference between NYSE and NASDAQ?

• NYSE lists only small companies, and NASDAQ lists large companies.

• NYSE is a physical trading floor, while NASDAQ is entirely electronic.

• NYSE is for stocks only, and NASDAQ is for commodities.