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ASX Sharemarket Quiz

Total questions: 25

Worksheet time: 14mins

Name
Class
Date
1.

What does ASX stand for?

a)

Australian School Exchange

b)

Australian Securities Exchange

c)

American Securities Exchange

d)

Australian Stock Exchange

2.

A ______ is a unit of ownership in a company.

a)

Share

b)

Security

c)

Stock

d)

Sharemarket

3.

A ______ is the price a buyer is willing to pay for a particular share.

a)

Bear

b)

Bull

c)

Bid

d)

Buy

4.

Another word for sector is..

a)

Investment

b)

Industry

c)

Specific

d)

Similar

5.

What is the key principle of investing in the sharemarket?

a)

Make as much money

b)

Manage risk

c)

Buy cheap

d)

Sell High

6.

A portion of a company’s earnings that is paid to shareholders, on a quarterly or annual basis is a..

a)

Dividend

b)

Interest

c)

Compound Interest

d)

Capital gain

7.

What do we need to research before investing in a company?

a)

News Reports

b)

Announcements on the ASX

c)

Quarterly/Annual Reports

d)

All of the above

8.

Why do people trade in shares?

a)

So they don't need a full-time job

b)

To buy a large amount of shares in one company and never sell or check them, hoping they might become rich

c)

To become an accountant

d)

To generate wealth through dividends or potential share price growth

9.

When deciding to buy shares in the ASX Game, we should...

a)

Only invest in one business

b)

Not do any research on the company and its history

c)

Invest in around 25 different mediocre companies but not check their progress

d)

Stick to a few profitable companies, after doing research on the companies history.

10.
Diversification means spreading investments to reduce risk 
a)
True
b)
False
11.
Which is correct?
a)
High Risk, Low Return
b)
High Risk, High Return
12.
Shares are sold using
a)
a Stockbroker
b)
a Stackbroker
c)
a Stockbraker
d)
a Trading Assistant
13.
A stockbroker 
a)
buys shares for you
b)
offers advice
c)
buys shares, sells shares and offers advice
d)
sells shares for you
14.
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
15.
A fee is charged by a stockbroker for advice and trading
a)
True
b)
False
16.
Dividends are revenues distributed to shareholders
a)
True
b)
False
17.

What is the following part of a definition of?


"Invest in different shares that will react differently to the same event."

a)

Risk

b)

Risk aversion

c)

Diversification

d)

Luck

18.

What happens if you diversify your share portfolio?

a)

You reduce risk.

b)

You increase risk.

c)

You eliminate risk.

d)

You halve risk.

19.

What is brokerage?

a)

A fee you pay when buying or selling shares.

b)

A fee you pay when you lose money on the sharemarket.

c)

Money paid to you when a company you invest in loses money on the sharemarket.

d)

A fee you pay when you make money on the sharemarket.

20.

Fundamental Analysis Means

a)

Analysing Chart

b)

Study of Candles

c)

Study of Economics of Company

d)

Study of Price Pattern

21.

Technical Analysis Means

a)

Study of Profit & Loss of Company

b)

Study of Balance Sheet

c)

Study of Charts & Patterns

d)

Study of Company Average Investment

22.

What is Bull market?

a)

Buying a bull online

b)

When everything goes up and people are buying.

c)

When prices are going down and nobody is buying.

d)

When people are selling false information.

23.

What is a Bear market?

a)

When prices go up and everybody is buying.

b)

Selling a bear online.

c)

When prices go down and nobody is buying.

d)

Buying bears online.

24.

When you own part of a company, this means you own ________ of that company.

a)

dividend

b)

asset

c)

stock

d)

bankrupt

25.

Shares of stock from a variety of companies that you own are called?

a)

Dividend

b)

Portfolio

c)

Commission

d)

Diversity