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Worksheets

Stock Market

Total questions: 20

Worksheet time: 13mins

Name
Class
Date
1.
What is the price at which stock is bought and sold?
a)
Par Value
b)
Stated value
c)
Authorized value
d)
Market value
2.
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
3.

Which one of the following types of securities has no priority in a bankruptcy proceeding?

a)

a. Long-term secured debt

b)

b. Common stock

c)

c. Short-term unsecured debt

4.

Which one of the following will increase the current value of a stock?

a)

a. Decrease in the dividend growth rate

b)

b. Increase in the dividend growth rate

c)

c. Decrease in the expected dividend for next year

5.

A stock has a market price of RMB 46.10 and pays a RMB 2.40 annual dividend. What is the dividend yield?

a)

a. 4.13 percent

b)

b. 4.84 percent

c)

c. 5.21 percent

d)

d. 5.52 percent

6.

Value investing is about...

a)

investing in undervalued stocks with strong fundamentals

b)

investing in undervalued stocks with weak fundamentals

c)

investing in overvalued stocks with strong fundamentals

d)

investing in overvalued stocks with weak fundamentals

7.

Ford company has a p/e ratio of 4.32. Ferrari has a p/e ratio of 40.

Mercedez benz has p/e ratio of 5.8

BMW has a p/e ratio of 2.95.

Which company is likely to be a growth company?

a)

Ford

b)

Ferrari

c)

Mercedez-Benz

d)

BMW

8.

Pepsi's share is $150 and Coca Cola share is $59. Pepsi has a market capitalization of $246 billion and Coca-Cola has a market capitalization of $257 billion. Which of the following is true?

a)

Pepsi is fundamentally cheaper than Coca Cola

b)

Coca-Cola is fundamentally cheaper than Pepsi

c)

Coca-Cola is a blue chip stock; Pepsi is a penny stock

d)

None of the above

9.

What are the Indices of the National Stock Exchange?

a)

Nifty 20

Nifty Next 50

Nifty 600

b)

Nifty 60

Nifty Next 60

Nifty 600

c)

Nifty 50

Nifty Next 50

Nifty 500

d)

Nifty 40

Nifty Next 50

Nifty 500

10.
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
11.

What is a Blue Chip Stock?

a)

A company whose stock has been performing badly, so they say it's "in the blue."

b)

A company that people are willing to bet on, like gambling.

c)

About to go bankrupt, this company isn't worth one blue chip.

d)

A well-established and financially-sound company that has been successful for a many years.

12.

What does it mean to "BUY ON MARGIN"?

a)

Selling the stock today and buying it back at a future date.

b)

The option but not the obligation to buy the stock at a future date.

c)

Buying a stock from a foreign country.

d)

Paying a small portion for the stock and borrowing the rest.

13.

Price of 1 share multiplied by the total number of shares outstanding equals ___.

a)

P/E Ratio

b)

Dividend Yield

c)

Market Capitalization

d)

Stock Index

14.
A Split Stock happens when
a)
a person sells a stock for a profit
b)
a person sells a stock for a loss
c)
a person is a part of a company and owns the stock
d)
a corporation divides a share up because the price of 1 share is too high
15.

With dangerously speculative business models, this kind of stock is prone to schemes that can drain your entire investment.

a)

Blue-chip stocks

b)

Penny Stocks

c)

IPO Stocks

16.

What does the term FLOAT refers when we talk about the stock market?

a)

Stocks that have been sold

b)

Stocks owned by financial institutions

c)

IPO's that will be available

d)

The amount of outstanding shares that can be bought.

17.

No. Of companies listed in NIFTY

a)

30

b)

70

c)

50

d)

100

18.

What penalty is levied for first instance margin / limit violation ?

a)

0.07% per day

b)

0.07% per day + Rs.5,000/- per instance

c)

0.07% per day + Rs.20,000/

d)

None of avove

19.

You sold a Put option on a share. The strike price of the put was Rs.245 and you received a premium of Rs.49 from the option buyer. Theoretically, what can be the maximum loss on this position?

a)

206

b)

196

c)

49

d)

Nill

20.

Which of these PUT's are In the Money ?

a)

Spot 300 ; Strike Price 300

b)

Spot 300 ; Strike Price 280

c)

Spot 300 ; Strike Price 320

d)

None of above