WorksheetsBasics Of Stock Market
Total questions: 20
Worksheet time: 7mins
What does owning a stock represent?
Debt in a company
Ownership in a company
A loan to a company
None of the above
What is the role of a stock exchange?
It issues company earnings reports
It sets stock prices
It is a platform for buying and selling stocks
It regulates insider trading
A bull market is characterized by:
Falling stock prices and pessimism
Rising stock prices and optimism
High inflation rates
Increased insider trading
What does "volatility" in the stock market mean?
Stable stock prices
Rapid changes in stock prices
Declining investor confidence
Steady growth in stock value
The P/E ratio compares:
Stock price to company revenue
Stock price to company earnings
Company debt to equity
Dividends to market cap
Market capitalization is calculated as:
Total earnings of a company
Total value of a company’s shares
Total assets of a company
Annual dividends paid by the company
EPS stands for:
Earnings Per Stock
Estimated Price Share
Earnings Per Share
Economic Profit Share
Dividends are:
Payments made to bondholders
Regular payments to shareholders
Fees paid to brokers
Interest payments on debt
An IPO is when:
A company splits its stock
A company issues bonds
A company goes public for the first time
A company pays dividends for the first time
Bonds are:
Shares in a company
Debt instruments issued by companies or governments
A type of ETF
Options contracts
ETFs are:
Stocks of tech companies
Exchange-traded funds that track indices
Government-issued bonds
Private equity investments
What does a broker do?
Issues stocks
Facilitates stock trading
Predicts stock movements
Regulates stock exchanges
A limit order specifies:
The maximum number of shares that can be bought
The price at which a trade occurs
A request for insider trading
A stop-loss threshold
Shorting a stock means:
Betting on stock prices to rise
Buying undervalued stocks
Betting on stock prices to fall
Selling stocks at a loss
Value investing focuses on:
High-growth stocks
Undervalued stocks
Stocks with high dividends
Technical analysis
Technical analysis involves:
Reviewing company financials
Using charts and patterns to predict stock movements
Evaluating macroeconomic trends
Calculating P/E ratios
Liquidity in the stock market refers to:
The speed of stock price changes
The ease of buying/selling stocks without affecting price
The availability of funds for IPOs
The stability of a stock’s value
What is insider trading?
Trading based on public information
Legal trading by company executives
Illegal trading based on non-public information
Trading conducted on international markets
Why do companies issue bonds?
To raise capital without giving up ownership
To increase their market cap
To attract more investors to their stock
To pay dividends
What is a common feature of ETFs?
They pay fixed interest rates
They are traded like stocks on exchanges
They are only available to institutional investors
They guarantee a fixed return
