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Stock Market Essentials

Total questions: 27

Worksheet time: 16mins

Name
Class
Date
1.

Income

a)

Sales - Operating cost = Income

b)

Operating cost - Sales = Income

c)

Sales - Income = Income

d)

Sales + Operating Cost = Income

2.
What is the price at which stock is bought and sold?
a)
Par Value
b)
Stated value
c)
Authorized value
d)
Market value
3.
If a business wants to raise capital but not create debt, it can
a)
float a bond issue
b)
issue common stock
c)
borrow money from a commercial bank
d)
borrow money from the government
4.
People who own stocks are guaranteed a return on the money they have invested in stocks.
a)
TRUE
b)
FALSE
5.
Stocks represent ownership in a corporation.
a)
TRUE
b)
FALSE
6.
Stockholders can reduce the risk on their stock investment by diversifying their portfolios.
a)
TRUE
b)
FALSE
7.
Common stock ownership gives investors
a)
voting rights in shareholder meetings
b)
guaranteed dividends
c)
lower risk with a higher rate of return
8.

Time Value of Money is the idea that money has the same value at the present time and future time

a)

true

b)

false

9.

The highest price and lowest price of a stock over a 52 week period.

a)

beta

b)

profit

c)

volume

d)

52 week range

10.

A company that sells stock on the stock market.

a)

private company

b)

market capitalization

c)

public company

d)

stock market

11.

A sum of money paid to shareholders of a corporation out of its earnings.

a)

index

b)

dividend

c)

profit

d)

invest

12.

A group of large companies that stockbrokers look at to gauge how the market is doing as a whole.

a)

shareholder

b)

portfolio

c)

industry

d)

index

13.

A particular market where stocks and bonds are traded.

a)

market capitalization

b)

portfolio

c)

stock market

d)

shareholder

14.

A holder or owner of stock in a company or corporation.

a)

stock market

b)

shareholder

c)

portfolio

d)

industry

15.

The total number of shares traded in a given day.

a)

beta

b)

profit

c)

loss

d)

volume

16.

What is it called when the stock market rises for a period of time?

a)

bull market

b)

bear market

c)

stock market

d)

growth market

17.

Does a bear market mean the stock market is rising or going down?

a)

rising

b)

going down

c)

staying the same

d)

cross dimensional static drift

18.
Only rich people invest in the stock market.
a)
True
b)
False
19.
Buying stocks is a sure way to make money.
a)
True
b)
False
20.
People can buy stocks on the Internet.
a)
True
b)
False
21.

IPO means

a)

investor protection options

b)

initial public offering

c)

income product opportunity

22.

Ventura follows which system of square up

a)

T + 7

b)

T + 2

c)

T + 5

d)

T + 9

23.

Stock Exchanges in India follow the settlement mechanism as follows

a)

T + 7

b)

T + 2

c)

T + 9

d)

T + 1

24.

What is the regulatory authority of Stock Exchanges called

a)

IRDA

b)

SEBI

c)

TRAI

d)

PFRDA

25.

The expiry of a future contract is on the last what day of the month

a)

Thursday

b)

Friday

c)

Tuesday

d)

Wednesday

26.

A client has bought stocks on Thursday morning 10.00 AM, he has fully paid for the stocks. On which day will he receive the stocks in his demat account?

a)

Tuesday

b)

Friday

c)

The same day

d)

Monday

27.

If stocks are purchased using exposure on Friday, calculate T+7

a)

Tuesday

b)

Next Friday

c)

Monday

d)

Next Tuesday