Font size
WorksheetsFinance Review Quiz
Total questions: 60
Worksheet time: 40mins
What is a Bear Market?
A market where stock prices are rising and investor confidence is growing.
A market where stock prices are falling and investor confidence is decreasing.
A market exclusively for trading bears and bear-related commodities.
A market where stock prices remain constant over time.
Which of the following best describes Blue Chip Stocks?
Stocks from companies with a history of poor performance.
Stocks that are very risky and unpredictable.
Stocks from well-established, financially sound companies that have demonstrated their ability to perform in good and bad times.
Stocks that are only available in the color blue.
What is a Bond?
A type of stock that gives ownership in a company.
A loan made by an investor to a borrower, usually corporate or governmental.
A promise between friends to invest together.
A certificate that guarantees a fixed number of shares of stock.
What does a Broker do?
Prints money for the government.
Acts as a middleman between buyers and sellers in financial markets.
Provides legal advice to companies.
Manages a company's finances.
What characterizes a Bull Market?
Falling stock prices and pessimism among investors.
Constant stock prices and neutral investor sentiment.
Rising stock prices and optimism among investors.
The trading of livestock and agricultural products.
What is a Commodity?
A unique, one-of-a-kind financial instrument.
Basic goods used in commerce that are interchangeable with other goods of the same type.
A term for high-tech stocks.
A type of bond issued by technology companies.
What are Dividends?
Fees charged by brokers for their services.
Payments made by a corporation to its shareholders, usually as a distribution of profits.
The initial price of a stock when it is first issued.
Loans taken by companies to fund new projects.
What is an Exchange-Traded Fund (ETF)?
The term 'Index' in finance refers to:
A book that lists all the stocks available for purchase.
A measure of the price performance of a collection of stocks that represents a particular market or sector.
The interest rate on a loan.
The alphabetical listing of commodities.
An IPO (Initial Public Offering) is:
When a company offers its stocks to the public for the first time.
A type of dividend paid to shareholders.
A strategy used by investors to reduce risk.
When a company decides to buy back its own shares from the market.
A Mutual Fund is:
A fund that exclusively invests in government bonds.
An investment program funded by shareholders that trades in diversified holdings and is professionally managed.
A savings account with a high rate of interest.
A fund that provides loans to small businesses.
A Portfolio is:
A collection of stamps or artworks.
A briefcase used to carry financial documents.
A collection of investments held by an individual or institution.
A type of financial report.
A Share represents:
A portion of a bond.
A piece of ownership in a company.
A unit of currency.
A fixed interest rate.
The Stock Market is:
A place where groceries are sold.
A meeting for corporate executives.
An aggregation of buyers and sellers of stocks, which represent ownership claims on businesses.
A type of bank account.
A Stock Split occurs when:
a company decides to divide its existing shares into multiple shares to boost liquidity
a company's stock price exceeds a certain market value
a company merges with another company
a company is bought by a larger corporation
Earnings Per Share (EPS) is:
The total amount of dividends paid out over a year.
The amount of money a company earns through its operations per share of stock.
The price of a single share of stock.
The total earnings divided by the number of bonds.
An Index Fund is:
A fund that attempts to beat the market by selecting stocks.
A mutual fund or ETF that aims to replicate the performance of a specific index.
A fund that only invests in bonds.
A private investment fund for wealthy individuals.
A Certificate of Deposit (CD) is:
A type of stock.
A record of ownership in a corporation.
A savings certificate with a fixed maturity date and fixed interest rate.
A document proving ownership of gold.
Market Capitalizations refers to:
The total value of all coins and currency in circulation.
The maximum amount of money a company can borrow.
The total value of a company's outstanding shares of stock.
The size of a company's physical stores.
The S&P 500 Index is:
An index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.
A list of the 500 richest people in the world.
An index that tracks the performance of 500 selected bonds.
A savings plan offered by banks to their most valuable customers.
The Beta of a stock measures:
Its dividend yield.
Its volatility in comparison to the overall market.
The number of shares available for trading.
Its profitability over the last fiscal year.
A Beta of 1 indicates that:
If a stock has a Beta less than 1, it is generally considered to be:
More volatile than the market.
Less volatile than the market.
Having no correlation with the market.
Guaranteed to provide a positive return.
A stock with a Beta greater than 1:
Is less risky than the overall market.
Will underperform in a rising market.
Is more volatile and potentially offers higher returns in a rising market.
Has a fixed dividend yield.
When evaluating stocks to add to your portfolio, how might you use Market Capitalization (Market Cap)?
To determine the exact dividend payout date of a stock.
To assess the company's size and the potential risk and growth profile, with larger companies generally being more stable and smaller companies potentially offering higher growth opportunities.
To calculate the daily trading volume of the stock.
To measure the volatility of the stock's price over the last year.
How can Beta and Earnings Per Share (EPS) be used together to pick stocks?
Beta can be used to understand the stock's volatility relative to the market, and EPS can give insight into the company's profitability, combining both helps in choosing stocks that fit one's risk tolerance and growth expectations.
Beta can be used to understand the stock's volatility relative to the market, and EPS can give insight into the company's profitability, combining both helps in choosing stocks that fit one's risk tolerance and growth expectations.
Use Beta to determine the dividend yield and EPS to calculate the stock's market capitalization.
EPS is used to measure the company's debt levels, and Beta to calculate the interest rate on the company's bonds.
Beta is used to find companies with high market capitalizations, while EPS determines the age of the company.
Which of the following best describes the difference between Mega Cap, Large Cap, Mid Cap, Small Cap, and Nano Cap stocks?
They refer to the geographical location of the companies' headquarters, with Mega Cap companies located in mega cities.
They indicate the age of the company, with Mega Cap being the oldest and Nano Cap the newest companies.
They represent different sectors of the economy, with each cap size specializing in a specific sector like technology for Mega Cap and agriculture for Nano Cap.
They denote the market capitalization of companies, with Mega Cap being the largest companies by market value, followed by Large Cap, Mid Cap, Small Cap, and Nano Cap being the smallest.
What is the primary purpose of a Stock Exchange?
To provide loans to businesses and individuals.
To facilitate the buying and selling of stocks, bonds, and other securities.
To offer financial advice to companies and investors.
To regulate the national economy and control inflation.
What does 'Liquidity' mean in financial terms?
The ability of a company to generate profits.
The ease with which an asset can be converted into cash without affecting its market price.
The level of risk associated with investing in a particular stock.
The amount of debt a company has on its balance sheet.
What role does the Federal Reserve play in the United States economy?
It insures deposits in banks and thrift institutions.
It acts as the central bank, controlling monetary policy and regulating banks.
It directly sets interest rates for loans and credit cards.
It prints and mints all US currency.
When a private company or corporation raises investment capital by offering its' stock to the public for the first time
NASDAQ
NYSE
Stock Exchange
IPO
Stock
Like a flea market where buyers and sellers come together; buy low/sell high
NASDAQ
NYSE
Stock Exchange
IPO
Stock
New York Stock Exchange located in New York City, formerly known at the American Stock Exchange (AMEX)
NASDAQ
NYSE
Stock Exchange
IPO
Stock
Second largest exchange in the world by market capitalization, behind the NYSE; located in New York City
NASDAQ
NYSE
Stock Exchange
IPO
Stock
Shares of a company that do not guarantee a dividend and have more risk than preferred. Right to vote for board of directors as well as on issues that come before the board at annual meetings.
Preferred Stock
Investor
Common Stock
Dividends
Stockbroker
Shares of ownership of a company in which the shareholder is guaranteed a dividend if one is declared and whose shares are usually not as volatile as common stock; no voting rights.
Preferred Stock
Investor
Common Stock
Dividends
Stockbroker
An arrangement of characters (usually letters) representing a particular security on an exchange.
Beta Number
P/E Ratio
Risk
Sector
Ticker Symbol
The chance of losing all or part of the value of an investment.
Beta Number
P/E Ratio
Risk
Sector
Ticker Symbol
This measures the level of risk in investing in a stock (1 - move with the overall market, less than 1 less volatile, greater than 1 more volatile
Beta Number
P/E Ratio
Risk
Sector
Ticker Symbol
The ratio of the stock's price per share to its' earnings per share.
Beta Number
P/E Ratio
Risk
Sector
Ticker Symbol
IOU for a loan; company is borrowing money from you at a rate of interest; investment grade bonds are considered safe
Bonds
Speculative Risk
Conservative Risk
Mutual Funds
Moderate Risk
A collection of stocks, bonds, and other securities owned by a group of investors and managed by a professional investment advisory firm.
Bonds
Speculative Risk
Conservative Risk
Mutual Funds
Moderate Risk
What does P/E ratio stand for in stock market terms?
Profit/Earnings ratio
Price/Earnings rate
Price-to-Earnings ratio
Payment/Expense ratio
How is the P/E ratio calculated?
P/E ratio = Dividends per Share / Earnings per Share
P/E ratio = Market Price per Share * Earnings per Share
P/E ratio = Market Cap / Earnings per Share
P/E ratio = Market Price per Share / Earnings per Share
What does a high P/E ratio indicate about a stock?
The stock may be overvalued.
The stock may be experiencing high growth.
The stock may be undervalued.
The stock may be stable.
Why is the P/E ratio considered an important metric for investors?
The P/E ratio is important as it helps investors assess the valuation of a company based on its stock price relative to its earnings per share.
The P/E ratio is significant for determining the company's market share
The P/E ratio is crucial for predicting interest rate changes
The P/E ratio is important because it indicates the company's revenue growth potential
What factors can influence a stock's P/E ratio?
Weather conditions, social media trends, and celebrity endorsements
Company performance, market sentiment, interest rates, inflation, industry trends, and overall economic conditions.
Personal preferences, historical events, and sports team performance
Local government policies, global population growth, and technological advancements
How can investors use the P/E ratio to make investment decisions?
By comparing the P/E ratio of different stocks to assess their valuation and potential investment opportunities.
By comparing the P/E ratio of different stocks to assess their dividend yield
By using the P/E ratio to determine the company's market share
By ignoring the P/E ratio and focusing solely on the company's revenue growth
IRS
When you own part of a company, this means you own ________ of that company.
dividend
asset
stock
bankrupt
Usually, when there is high demand (want) for ownership of a particular company or a product made by that company, what happens to the price of that company’s stock?
goes up
goes down
stays the same
Which answer best supports the idea that investing in the stock market is better than putting money in a savings account?
Investing in the stock market is a safer way to earn money
Investing in the stock market gives a better return on your money
Investing in the stock market guarantees investors they will make a profit
a group of companies on the stock market such as NASDAQ, DOW Jones, and S&P 500
stock
index
asset
stockbroker
1. What does Dollar Cost Averaging mean?
A) Investing all your money at once.
B) Saving all your money in a bank.
•
C) Investing the same amount of money at regular intervals, regardless of the asset's price.
D) Buying only when the market price is low.
What does P/E ratio tell us about a company?
A) How much money the company has in the bank.
B) How many people work for the company.
C) How much investors are paying for a company's earnings.
D) How many products the company sells.
