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Stocks

Total questions: 26

Worksheet time: 20mins

Name
Class
Date
1.

When stock prices increase steadily as investors anticipate their ability to earn a profit

a)

Bull Market

b)

Bear Market

c)

Dividends

d)

Liquidity

2.

When stock prices decrease as investors fear their ability to make a profit

a)

Bull Market

b)

Bear Market

c)

Shares Market

3.
Stocks represent ownership in a corporation.
a)
TRUE
b)
FALSE
4.
A holder or owner of stock in a company or corporation.
a)
stock market
b)
shareholder
c)
portfolio
d)
industry
5.
Why does a company issue stock?
a)
to brag about their profits
b)
to attract money
c)
to gain publicity
d)
because it is required by law
6.
The possibility of losing some or all of a particiular investment.
a)
risk
b)
index
c)
industry
d)
profit
7.
The name for a part of a business that is bought and sold on the stock market is:
a)
Part
b)
Marker
c)
Stocker
d)
Share
8.
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.
9.
As long as you are 18 years old and have some money, you can invest it in the stock market.
a)
True
b)
False
10.

Why is it important to start investing as soon as possible?

a)

You take less risk when you are young, so money will be safe

b)

You have more time for your money to compound

c)

Investing is an easy way to make quick money

d)

Fees on investments are cheaper when you are younger

11.

Interest upon interest is called

a)

A good deal

b)

Compound Interest

c)

Principle

d)

A double standard

12.

Which of the below is an employer based retirement plan that both employees and employers contribute to?

a)

Traditional IRA

b)

Roth IRA

c)

401K

d)

Pension

13.
You should start saving for retirement
a)
When you get married
b)
When you get your first job
c)
When you reach age 50
d)
When you reach age 65
14.
The higher the risk the, _______ the reward
a)
Higher
b)
Lower
c)
There is no relationship between risk and reward
d)
All of the above
15.

When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.

a)

dividend

b)

asset

c)

stock

d)

bankrupt

16.

When you own part of a company, this means you own ________ in that company.

a)

dividend

b)

asset

c)

stock

d)

bankrupt

17.

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?

a)

goes up

b)

goes down

c)

stays the same

18.

Investing in the Stock Market isn't risky.

a)

True

b)

False

19.
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.
20.
One way stockholders make money is by selling their stock for more money than they paid for it.
a)
TRUE
b)
FALSE
21.

If I buy a stock at $17 a share, then sell two years later at $86 a share. How much would I profit?

a)

$70

b)

$69

c)

$86

d)

$17

22.

How can you make money in the stock market?

a)

Buy low and sell high

b)

Earn dividends

c)

Both of these

23.
Shares of ownership in a company.
a)
stock
b)
portfolio
c)
volume
d)
industry
24.
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
25.

If you bought this stock in the beginning of 2023 and sold it in early April of 2023 (the last date shown on the chart), would you have made money?

a)

Yes, I would have tripled my money.

b)

No, I would have lost money.

c)

Yes, I would have not quite doubled my money.

d)

I would have pretty much broken even.

26.

A bond is generally considered less risky than a stock.

a)

True

b)

False