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Matchday 2

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

What is the primary focus of a trader?

a)

Long-term wealth building with minimal intervention

b)

Making quick profits through short-term market movements

c)

Buying assets and holding them for years

d)

Relying on a professional fund manager to manage assets

2.

Which approach is generally considered to involve less risk?

a)

Trading, because of the potential for quick gains

b)

Trading, due to frequent market monitoring

c)

Investing, because of a long-term focus and patience

d)

Investing, due to frequent adjustments based on market trends

3.

Which of the following trading styles focuses on making quick profits by reacting to short-term price movements?

a)

Positional Trading

b)

Swing Trading

c)

Intraday Trading

d)

Growth investing

4.

What type of investor focuses on finding undervalued stocks and waiting for their value to rise over time?

a)

The Hybrid Investor

b)

The Value Investor

c)

The Growth Investor

d)

The Dividend Investor

5.

Which of the following indices tracks the performance of the top 50 companies in India?

a)

S&P 500

b)

Sensex

c)

Nifty 50

d)

Hang Seng

6.

The Nikkei 225 index primarily tracks companies from which country?


a)

China

b)

India

c)

Japan

d)

Germany

7.

Which type of stock is considered ideal for income-focused investors seeking regular dividend payouts?

a)

Growth Stocks

b)

Penny Stocks

c)

Dividend Stocks

d)

Cyclical stocks

8.

What is the market capitalization range for a company to be considered a Mid Cap stock?


a)

Below Rs. 5,000 crore

b)

Between Rs. 5,000 crore and Rs. 20,000 crore

c)

Above Rs. 20,000 crore

d)

No specific range

9.

How does a stock split typically affect the stock price immediately after the announcement?

a)

The stock price increases significantly.

b)

The stock price decreases in proportion to the split ratio.

c)

The stock price remains unchanged.

d)

The stock price becomes more volatile without any clear trend.

10.

What is the likely impact on stock prices when a company announces a buyback (share repurchase)?


a)

Stock price typically decreases due to reduced earnings per share (EPS).

b)

Stock price typically increases due to reduced number of shares outstanding.

c)

Stock price remains unchanged as buybacks have no effect on market value.

d)

Stock price declines because the company is using funds for repurchases instead of growth.