Stocks

Name?

What is a stock?

• A type of bond issued by a company
• A share representing ownership in a company
• A contract for future delivery of goods
• A form of currency used in trading

What does it mean to 'diversify' your investment portfolio?

• To spread investments across various assets
• To focus on high-risk investments only
• To invest in one type of asset only
• To liquidate all holdings for cash

What is the primary purpose of the stock market?

• To provide insurance for investors
• To facilitate the sale of commodities
• To allow companies to raise capital
• To offer loans to small businesses

What is a 'bull market'?

• A market that is unpredictable
• A market characterized by rising stock prices
• A market with declining stock prices
• A market with stable stock prices

What is a dividend?

• A tax on stock profits
• A fee for trading stocks
• A payment made to shareholders from profits
• A type of stock certificate

What does 'market capitalization' refer to?

• The total value of a company's outstanding shares
• The total revenue generated by a company
• The total number of employees in a company
• The total cost of all assets owned by a company

What is a stockbroker?

• A professional who buys and sells stocks for clients
• A software that tracks stock prices
• A person who invests their own money
• A type of investment analysis tool

What is an IPO?

• Income Producing Option
• Initial Public Offering of shares
• Investment Portfolio Objective
• International Professional Organization

What does it mean to 'short sell' a stock?

• To buy shares at a low price
• To invest in only high dividend stocks
• To hold shares for a long time
• To sell shares you do not own in anticipation of a price drop