Ring Wars Round 1

What is a "share" of stock?

• A loan given to a company by an investor.

• A certificate guaranteeing a fixed rate of return.

• A unit of ownership in a publicly traded company.

• A type of bond.

What is a "dividend"?

• The profit made when selling a stock for a higher price than you bought it.

• The initial price of a stock when it first goes public.

• A periodic payment made by a company to its shareholders, typically from its profits.

• A fee charged by a brokerage for executing a trade

If a stock has high liquidity, what does it mean?

• It has low price

• It is easy to buy and sell quickly

• It gives guaranteed returns

• It is only traded in foreign markets

What does P/E ratio stand for?

• Price to Expense Ratio

• Price to Earning Ratio

• Profit to Equity Ratio

• Purchase to Equity Ratio

Who regulates the stock markets in India?

• RBI

• SEBI

• BSE

• IRDAI

What does the term "bull market" refer to?

• A market where prices are falling

• A market where prices are rising

• A market with no change in prices

• A market only for commodity trading

What is the term for spreading investments across different assets to reduce risk?

• Speculation

• Diversification

• Leveraging

• Hedging

What is the primary purpose of a stock exchange?

• To provide a platform for buying and selling stocks.

• To regulate the prices of commodities.

• To offer loans to businesses.

• To manage government bonds.

What does the term "market capitalization" refer to?

• The total number of shares a company has issued.

• The total value of a company's outstanding shares of stock.

• The total revenue generated by a company in a year.

• The amount of money a company has in its bank accounts.

What is a "bear market"?

• A market characterized by rising prices.

• A market characterized by falling prices.

• A market with stable prices.

• A market only for real estate trading.