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Ch 8 Stock Market Test

Total questions: 35

Worksheet time: 26mins

Name
Class
Date
1.

A portion of a company owned by an investor is a definition for:

a)

Dividend

b)

Simple Moving Average

c)

Stock

d)

Initial Public Offering

2.

True or False: A bull market is a market where share prices are decreasing steadily.

a)

True

b)

False

3.

Which stock market index allows investors to buy and sell stocks through an automated network of computers?

a)

Dow Jones Industrial Average

b)

NASDAQ

c)

S & P 500

4.

Which stock market index consists of the 30 most-traded blue-chip stocks on the New York Stock Exchange?

a)

Dow Jones Industrial Average

b)

Nasdaq

c)

S & P 500

5.

Which fund invests in securities like stocks, bonds, and other assets and are usually actively managed, typically having higher fees?

a)

Mutual Funds

b)

ETFs

c)

Index Funds

d)

Bond Funds

6.

Which stock market index tracks the stock performance of hundreds of the largest companies listed on stock exchanges in the United States?

a)

Dow Jones Industrial Average

b)

Nasdaq

c)

S & P 500

7.

What is the stock market?

a)

A type of farmers market where people buy and sell food.

b)

A place where parts of businesses are bought and sold.

c)

A special type of grocery store that sells stocks.

d)

A type of bank that gives out loans to new businesses.

8.
The stock market is a physical place.
a)
Yes, it's located in most major cities around the world.
b)
No, trading is all done online.
c)
Yes and No, there are physical places where stocks are sold, but they are also sold virtually.
9.
You can buy stock in any company in the world.
a)
True, all companies are required to offer stock.
b)
False, a company is only listed on the stock exchange if it wants to be.
10.
The DOW Jones Industrial Average is an index of 30 American companies.  Why is the DOW Jones Industrial Average important?
a)
It tells Americans how much debt the country is in.
b)
It helps economists predict when a stock market crash will happen.
c)
It tells Americans how many jobs are out there.
d)
It provides a snapshot of how the stock market and the US economy is doing.
11.
The highest price a stock has traded during the current session
a)
Day High
b)
Day Low
c)
Last
d)
Open
12.

When the market takes a fall and investors are selling their stocks is called

a)

Bull Market

b)

Bear Market

c)

Portfolio

d)

Common Stock

13.
A company owned by families or a small number of investors and do not issue stock to the public.
a)
public company
b)
industry
c)
private company
d)
portfolio
14.
A company that sells stock on the stock market.
a)
private company
b)
market capitalization
c)
public company
d)
stock market
15.
One way stockholders make money is by selling their stock for more money than they paid for it.
a)
TRUE
b)
FALSE
16.
What is an IPO?
a)
when a company first sells stock to the public
b)
a new Apple product
c)
when the government creates shares on the stock exchange
d)
when the company's shareholders have a meeting
17.
What does a stock represent?
a)
a loan you make to a company
b)
a percentage of ownership of a company
c)
a contract for a company's goods and services
d)
stocks are just tools used to make money
18.
The two major stock exchanges are
a)
NASDAQ & NYSE
b)
Dow Jones Industrial Average & S&P 500
c)
NYSE & American
d)
NASDAQ & DJIA
19.
If a company issues dividends, preferred stock holders are paid the dividends first.
a)
True
b)
False
20.
What is the goal of an investor?
a)
Buy low and sell high
b)
Keep a stock for their entire life
c)
Open a new investment account
d)
Help a company get bigger
21.
What is a dividend?
a)
Typically paid out each quarter, dividends are basically your share of the company’s profits
b)
A grandchild.
c)
A symbol that looks like a dot on either side of a dash.
d)
Something you use to hold books up on a shelf.
22.
Abbreviation a for a company listed on the stock market.
a)
stock
b)
stock exchange
c)
price
d)
ticker symbol
23.
What does IPO stand for?
a)
Initial Public Offering
b)
Improving Pay Offs
c)
Initial Pay Overages
d)
Improvised Public Offset
24.
Why does the price of a stock go up or down?
a)
Depending on the company's sales numbers. 
b)
If a lot of people want the stock, the price will go up. 
c)
It depends on the category it's in, there's a schedule for when certain stocks will increase. 
25.

Why would a company need to sell stock?  

a)
To increase its' customer base.
b)
To raise money.
c)
To stop the government from regulating it.
d)
To show customers that it's successful.
26.
You decide that you want to invest a little bit of money in Apple stock.  But in order to do that you need to figure out their stock symbol.  What is the symbol that Apple uses on the stock market?  Use the image to help you figure it out.
a)
AAPL
b)
APPLE
c)
IPHONE
d)
STEVEJOBS
27.
Approximately how much money was one share of Apple selling for last night?  Use the image to help you.
a)
213.05
b)
113.05
c)
33.05
d)
13.05
28.
Over the course of the day, the head of Apple's company is imprisoned for not paying his taxes.  What do you think will happen to Apple's stock?
a)
It will go up.
b)
It will go down.
29.

The NYSE and NASDAQ are known as

a)

Stocks

b)

Indexes

c)

Stock Exchanges

d)

Stock Markets

30.

If you have preferred stock...

a)

You get voting rights.

b)

You get no voting rights and no dividend.

c)

You are guaranteed dividend but get no voting rights.

d)

You are not guaranteed a dividend and you get voting rights.

31.

Which type of stock gives you voting rights?

a)

preferred stock

b)

common stock

32.

An IPO is...

a)

A company selling stock.

b)

A company buying its stock back.

c)

The first time a corporation starts selling shares.

d)

When a company goes under.

33.

Buying and selling stock for the purpose of profiting from short-term changes in their price is called

a)

selling short.

b)

buying on margin.

c)

speculation.

d)

liquidation.

34.

What is the purpose of the Securities and Exchange Commission (SEC)?

a)
To regulate the securities industry and protect investors.
b)
To manage the federal budget.
c)
To provide loans to businesses.
d)
To oversee international trade agreements.
35.

I work for an investment firm buying and selling stock...

a)
Real estate management
b)
Retail investment
c)

Stockbroker

d)
Corporate finance