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BF 5.04 Causes of Stock Price Fluctuation

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Elijah is considering investing in stocks. Regarding stock investments, which of the following primarily drives investors’ actions:

a)

Performance

b)

Expectations

c)

Recommendations

d)

Information

2.

Abigail is studying the stock market and she wants to understand how a bull market affects a stock’s price. Can you help her?

a)

By encouraging product purchases

b)

By promoting well-performing funds

c)

By discouraging product purchases

d)

By avoiding investment scams

3.

Mason is trying to understand how much a stock sells for. He learns that it depends directly on which of the following:

a)

How volatile the stock is

b)

The popularity of the company’s new product

c)

How high the company’s earnings are

d)

What buyers are willing to pay for the stock

4.

Emma is learning about stock trading and she is confused about the difference between a stock’s ask price and buy price. Can you help her understand this?

a)

The ask price and buy price are usually equal.

b)

The ask price is usually higher than the buy price.

c)

The ask price is the sell price, while the buy price is the bid price.

d)

The buy price is the sell price, while the ask price is the bid price.

5.

Tucker, Tiara, Jacob, Quinten, and Robby are all investing in the stock market. They notice that some stocks rise higher than, or fall lower than, the market as a whole. What are these types of stocks referred to as?

a)

efficient

b)

influential

c)

volatile

d)

successful

6.

Hannah is studying the stock market and wants to understand the factors that influence a company's stock price. She comes across a scenario where a company's stock price changed significantly. Which of the following could be a company-specific reason for this change:

a)

Ian's investment actions

b)

Government actions

c)

Change in supply or demand

d)

Kevin, the CEO, changed the company's management

7.
What happens when institutional investors purchase a number of stocks from the same company?
a)
Individuals purchase stocks from the company.
b)
Analysts recommend that investors sell their stocks from the company.
c)
The company introduces a new business model.
d)
The company introduces a new product.
8.

Eric, a budding investor, is trying to understand the factors that can cause a stock's price to fluctuate. Which of the following is not likely to cause a stock’s price to fluctuate:

a)

A well-known analyst, Aiden, recommends to buy the stock

b)

Kayln, an individual investor, adds the stock to her portfolio

c)

Langdon, a fund manager, sells the stock

d)

The stock is removed from the S&P 500

9.

Aria is studying the stock market and wants to understand how the general state of the economy can affect a stock’s price. What should she consider?

a)

The economy can affect a stock's price by increasing supply or demand

b)

The economy can affect a stock's price by making investment information available to the general public

c)

The economy can affect a stock's price by bringing together a balanced portfolio

d)

The economy can affect a stock's price by filtering out poor investments

10.

Lily is studying different types of stocks for her finance class. She wants to know, which of the following is a cyclical stock?

a)

Southwest Water Co. (SWWC)

b)

Triad Hospitals Inc. (TRI)

c)

US Concrete (RMIX)

d)

Colgage-Palmolive Co. (CL)