What Is A Stock?

What Is A Stock?

9th Grade

20 Qs

quiz-placeholder

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What Is A Stock?

What Is A Stock?

Assessment

Quiz

Financial Education

9th Grade

Easy

Created by

Angelo Scuderi

Used 2+ times

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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which task specifically focuses on analyzing information over a period of time?

Explain what stocks are and how they can make money

Identify ways to minimize risk when investing in stocks

Read a stock quote and evaluate a stock’s performance over time

Understand what a stock split is and how it impacts investors who own that stock

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Company A is raising $1 million at its initial public offering (IPO) by issuing 2,000 shares of stock. What is the value of each share?

$250

$500

$2,000

$5,000

3.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

Julia buys a share of stock through her brokerage firm. What are the two ways that Julia could make money from owning this stock?

Receiving dividends paid by the company

Earning interest guaranteed by the government

Selling the stock for more than she paid (capital gain)

Getting a refund of brokerage fees

4.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

Julia knows that investing in just one company is risky since there’s a chance that the stock’s value could decrease. Which actions would help her minimize this risk? Select all that apply.

Diversify by buying shares of different companies

Invest all her money in a single company she likes

Consider spreading purchases over time instead of all at once

Hold only cash and never invest

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

You need to know how to read a stock quote so you can evaluate a stock’s performance. Based on this, what is the primary purpose of learning to read a stock quote?

To memorize company slogans

To determine whether a particular stock is a good investment option for you

To predict the exact future price of a stock

To learn how to avoid paying taxes

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it more useful to look at the percent change of a stock price rather than the change in dollar amount?

Percent change allows for a fair comparison between stocks with different prices.

Dollar amount change always shows a bigger impact.

Percent change is only useful for expensive stocks.

Dollar amount change is more accurate than percent change.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Nike is classified as which type of company based on its market capitalization, and what does market capitalization represent?

A large cap company; Market capitalization represents the total value of a company's outstanding shares and is used to classify companies by size.

A small cap company; Market capitalization represents the company's annual revenue and is used to classify companies by industry.

A medium cap company; Market capitalization represents the company's profit margin and is used to classify companies by growth rate.

A micro cap company; Market capitalization represents the company's number of employees and is used to classify companies by workforce size.

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