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WorksheetsUnderstanding Stocks and Investing Basics
Total questions: 15
Worksheet time: 8mins
What is a stock?
A type of bond
A share in the ownership of a company
A type of loan
A form of currency
Which of the following is a stock market index?
NASDAQ
Federal Reserve
World Bank
IMF
Calculate the profit if you buy a stock at 10andsellitat 15.
$3
$5
$10
$15
What does the term "dividend" refer to in investing?
A type of stock
A company's earnings distributed to shareholders
A stock market crash
A type of bond
Which of the following is a reason to invest in stocks?
To guarantee a fixed income
To potentially earn higher returns
To avoid all risks
To save money in a bank account
What is the primary purpose of a stock exchange?
To print money
To facilitate the buying and selling of stocks
To regulate banks
To provide loans to businesses
If a stock's price increases from 20to 25, what is the percentage increase?
10%
20%
25%
50%
What is a "bull market"?
A market where prices are falling
A market where prices are rising
A market with no changes
A market with high inflation
Which of the following is a risk of investing in stocks?
Guaranteed returns
Loss of principal
Fixed interest rates
No market fluctuations
What is the term for the initial sale of stock by a private company to the public?
Secondary Offering
Initial Public Offering (IPO)
Stock Split
Dividend Reinvestment
If you own 100 shares of a company and the company declares a dividend of $2 per share, how much will you receive in dividends?
$50
$100
$200
$300
What does "portfolio diversification" mean in investing?
Investing all money in one stock
Spreading investments across various assets
Selling all stocks
Buying only bonds
Which of the following is a benefit of portfolio diversification?
Increased risk
Reduced risk
Guaranteed profits
Higher taxes
What is a "bear market"?
A market where prices are rising
A market where prices are falling
A market with no changes
A market with high inflation
If a stock's price decreases from 50to 40, what is the percentage decrease?
10%
15%
20%
25%
