WorksheetsASX
Total questions: 48
Worksheet time: 59mins
Name
Class
Date
1.
What is the key principle of investing of the sharemarket?
a)
Make as much money
b)
Manage risk
c)
Buy cheap
d)
Sell High
2.
The more money you invest, the greater the risk
a)
True
b)
False
3.
Diversification means you can smooth out the ups and downs of investments over time
a)
True
b)
False
4.
Which is correct?
a)
High Risk, Low Return
b)
High Risk, High Return
5.
A share is:
a)
a part ownership of a business profits
b)
a part ownership of shop
c)
a part ownership of an organisation
d)
a part ownership of a business
6.
Capitalisation is
a)
Value of Profits
b)
Value of Shares
c)
Value of Company
d)
How much you are worth
7.
Companies issue shares to raise money for future development or to sell business to new owners
a)
False
b)
True
8.
A float occurs in the secondary market
a)
False
b)
True
9.
Share prices in the Primary market are set by
a)
a formula
b)
the value in prospectus
c)
market demand
d)
value in prospectus or by a formula
10.
Trading on the ASX after shares are issued and the ASX approves the listing
a)
True
b)
False
11.
Shares are sold using
a)
a Stockbroker
b)
a Stackbroker
c)
a Stockbraker
d)
a Trading Assistant
12.
Settlement is
a)
the transfer of title and cash
b)
the issuing of shares
c)
the payment of shares
d)
when shares are sold
13.
Settlement occurs after _______________ days
a)
3 days
b)
3 business days
c)
2 business days
d)
2 days
14.
All shareholdings are recorded
a)
online
b)
on paper
c)
in a shareholding register
d)
electronically
15.
A stockbroker
a)
buys shares for you
b)
offers advice
c)
buys shares, sells shares and offers advice
d)
sells shares for you
16.
Who is involved in the sharemarket?
a)
buyer, sellers
b)
buyers, sellers, stockbrokers
c)
buyers, sellers, stockbrockers,companies
d)
buyers, sellers, companies
17.
Share announcements are made to ensure that everyone is disadvantaged
a)
True
b)
False
18.
To buy a share is a
a)
Ask
b)
Bid
c)
Buy
d)
Purchase
19.
To sell a share is called
a)
sell
b)
ask
c)
sale
d)
offer
20.
Trading occurs on the ASX
a)
All the time
b)
9am to 5pm Weekdays
c)
10am to 4pm Weekdays
d)
10am to 4pm, Mon to Thurs
21.
A fee is charged bu a stockbroker for advice and trading
a)
True
b)
False
22.
Dividends are revenues divided across shareholders and expressed as cents per share
a)
True
b)
False
23.
Dividends are only paid out once a year
a)
True
b)
False
24.
Which stock pays the highest dividend?
a)
Msft
b)
Pep
c)
Toyota
25.
__________ represents shares of ownership in a company
a)
Shareholders
b)
Stock
c)
Stock Market
d)
Dividend
26.
People who own shares of a company are called __________.
a)
Shareholders
b)
Stockholders
c)
Shareholders or Stockholders
27.
Only __________ traded companies are able to sell ownership in their companies through a large market place ____________?
a)
Publicly, Stockmarket
b)
Privately, Stockmarket
c)
Publicly, Stockholders
d)
Privately, Stockholders
28.
Some companies are owned by families or a small number of investors and do not issue stock to the public. These companies are known as __________ held companies.
a)
Publicly
b)
Privately
29.
Owning stock in a company is one way you can __________ your money. Other ways may be by owning mutual funds or real estate.
a)
Profit
b)
Invest
c)
Loss
30.
A __________ is part of the company’s __________ that the board of directors decides to distribute to the __________.
a)
Dividend, Profit, Stockholders
b)
Profit, Dividend, Stockholders
c)
Dividend, Stockholder, Profit
31.
If a stockholder sells his/her shares for less than he or she paid for them, the stockholder has experienced a __________.
a)
Profit
b)
Loss
32.
Investing means __________.
a)
Putting your money to work earning more money
b)
Saving your money
c)
Keeping your money safe.
33.
An investor takes a risk when buying any stock.
a)
True
b)
False
34.
A company issues shares of stock in order to raise funds for expansion.
a)
True
b)
False
35.
Only the very rich can buy stock.
a)
True
b)
False
36.
People who invest in the stock market will always make money.
a)
True
b)
False
37.
Someone who bought a company’s stock for $16.50 and sold it for $23.50, lost money on the investment.
a)
True
b)
False
38.
Stock can be purchased by any investor.
a)
True
b)
False
39.
Stockholders can only make money by collecting dividends.
a)
True
b)
False
40.
The government owns the stock market.
a)
True
b)
False
41.
What is a "profit"?
a)
The money you lose if you don't make a budget.
b)
Someone who says they have spoken with God.
c)
A French company which makes sandals.
d)
The money made after you subtract all of your costs.
42.
The sharemarket is...
a)
A carboot sale at Bush Inn on Saturday mornings.
b)
A new style of bike rental shop.
c)
Where everyone trades stocks in companies for money.
d)
Where everything loses value.
43.
How do you calculate the percentage of profit
a)
The Closing price minus the Opening price divided by the opening price times 100
b)
CP-OP=? ?/OP=! !x100 = Ans
44.
What influences the price of shares?
a)
Supply and demand
b)
Profit/Loss
c)
Competitors
d)
All of these
45.
What is Liquidity
a)
Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market
b)
Liquid Movement
46.
A rise in interest rates has no effect on share price
a)
True
b)
False
47.
What is a proxy
a)
Disease
b)
Someone acting on someone else's behalf
c)
Someone authorised to act on someone else's behalf
48.
2 benefits of investing in shares
a)
Higher return rates than other investments
b)
High Risk
c)
Easy to trade
100 %
