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Indexes, Selling Short ,and The Stock Market Game

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

Ethan and Ava are learning about short selling in their finance class. Can you help them fill in the blank? Short selling is the reverse of the investment process. First, you ______ and then you buy the stock back later.

a)

sell

b)

hold

c)

borrow

d)

lend

2.

Daniel decides to borrow some stock and sell it, hoping the price will drop so he can buy it back cheaper. What is this act called?

a)

Short cover

b)

Long buy

c)

Margin call

d)

Maintenance requirement

3.

Avery and William are learning about borrowing shares. When you borrow shares, you must ______ them upon demand. What should they do?

a)

return

b)

sell

c)

keep

d)

hide

4.

Imagine Jackson and Nora are trying their hand at the stock market! You only make a profit when you can buy back the shares for more than you sold them. Is this true?

a)

True

b)

False

5.

Mia and Harper are competing in the Stock Market Game! To avoid a margin call, what maintenance requirement percentage do they need to remember?

a)

30%

b)

10%

c)

50%

d)

75%

6.

Hannah and Aiden are discussing different types of investment accounts. Hannah asks, "Which type of account lets you borrow against the stocks and other securities you deposit?" What is she talking about?

a)

An account that allows you to borrow against stocks and other securities deposited into the account

b)

An account that only holds cash

c)

An account for long-term investments only

d)

An account that does not allow borrowing

7.

Isla and Liam are curious about their brokerage account. If they sign the stock loan consent form, what does it allow the brokerage house to do with their stocks?

a)

lend

b)

borrow

c)

sell

d)

buy

8.

David and Mia are competing in a virtual stock market game. Suppose you had a balance of 68,899anddecidedtoshortsell200sharesofSouthernCompanyat68,899 and decided to short sell 200 shares of Southern Company at 270 per share, just like David did. What is the total value of the short sale?

a)

$54,000

b)

$27,000

c)

$13,500

d)

$75,000

9.

Liam and Olivia are competing in The Stock Market Game! Olivia decides to make a bold move and short sell $54,000 worth of stock. If the game charges a broker’s fee of 2% on all transactions, what is the broker’s fee for Olivia’s short sale?

a)

$1,080

b)

$1,200

c)

$1,000

d)

$1,500

10.

Michael just sold some stocks and received a balance of 68,89968,899 . After paying a broker’s fee of 1,0801,080 , what is Michael’s new balance?

a)

$67,819

b)

$67,809

c)

$68,819

d)

$67,099

11.

Imagine Samuel is trying to impress his friends by showing off his stock market skills. If Samuel wants to "short cover," what does he need to do?

a)

Sell shares you own

b)

Buy back the stock originally borrowed from the broker for the short sell

c)

Buy new shares

d)

None of the above

12.

Imagine Charlotte is keeping an eye on Southern Company, and the stock price has dropped to $200 per share. She decides to short cover 200 shares. What is the total transaction value for Charlotte?

a)

$40,000

b)

$20,000

c)

$4,000

d)

$2,000

13.

Elijah and Abigail are competing in The Stock Market Game! If Elijah needs to pay the broker’s fee for a short cover transaction valued at $40,000, how much will it cost him?

a)

$800

b)

$400

c)

$1,200

d)

$2,000

14.

Scarlett just received a balance of 67,81967,819 in her account. After paying a broker’s fee of 800800 , what will Scarlett’s new balance be?

a)

$67,019

b)

$67,819

c)

$66,819

d)

$68,619

15.

Michael and Evelyn are learning about short cover transactions in their finance class. If they want to calculate the new ending balance after a short cover, which formula should they use?

a)

(Previous week’s closing price - short cover price) x number of shares + balance

b)

(Short cover price - previous week’s closing price) x number of shares + balance

c)

Number of shares x short cover price

d)

Balance - broker’s fee

16.

Maya just completed a short cover transaction in her investment club. Can you help her figure out what her final ending balance is after the trade?

a)

$81,019

b)

$80,000

c)

$82,500

d)

$79,450

17.

During a classroom quiz, Anika asked Jackson and Elijah: The S&P 500, Nasdaq, and the Dow are all examples of market ____________ which track stocks. Can you guess the right answer?

a)

indexes

b)

supers

c)

prices

d)

networks

18.

James and Emma are having a friendly debate: The Dow Jones Industrial tracks the ________ largest U.S. companies in the market. Can you help them settle it?

a)

500

b)

30

c)

2

d)

5

19.

Grace, Mason, and Abigail are curious about the stock market! They notice that the S&P 500, Nasdaq, and the Dow give us a daily measure of the overall _______________ of the stock market and our economy. Can you help them fill in the blank?

a)

health

b)

spirt

c)

hope

d)

networks

20.

Olivia and Aria are having a debate in class: The stocks in the S&P 500 represent roughly __________ of all publicly traded stocks, making it a great indicator of our economy's health. Can you help them settle the score?

a)

2%

b)

1%

c)

20%

d)

75%

21.

Olivia, Avery, and Mia are having a debate: Are the S&P 500, Nasdaq, and the Dow the ONLY indexes for measuring our Stock Market? What do you think?

a)

True

b)

False

22.

Benjamin and Charlotte are learning about the stock market. Can you help them remember the golden rule? The name of the game in the stock market is to buy __________ and ____________.

a)

High, Low

b)

Low, High

c)

Even, High

d)

All of the above

23.

Mason and Ava are on a virtual tour of New York City. They want to visit the famous street where the NYSE is located. Can you help them find out which street it is?

a)

Unicorn

b)

Bear

c)

Wall

d)

Bull

24.

Elijah and Grace are having a friendly quiz battle! Can you help them answer this: The S&P 500 tracks 500 of the ______________ U.S. companies across a span of industries and sectors.

a)

smallest

b)

worst

c)

domestic

d)

largest

25.

Sophia and Benjamin are searching for a company on the NYSE, but they can't find it! This means the company is not ________________ traded and is a private company. Can you help them fill in the blank?

a)

happy

b)

a company

c)

publicly

d)

all of the above

26.

Liam and Aria are curious about the history of stock markets. Charles Dow first developed a stock index in 1894, and two years later, he teamed up with Edward Jones to create the legendary ________________________________. Can you help Grace answer what they established?

a)

US Stock Market

b)

Dow Jones Industrial Average/Index

c)

Picasso Principle of Investing

d)

Bull and Bear Market

27.

Aria and Hannah are discussing the stock market. Aria says, "A bull market is when _____________________________." Can you help her fill in the blank?

a)

a rise in the market and favorable conditions

b)

a prolonged drop in the market

c)

bull runs through town

d)

The Market Crashes

28.

David and Sophia are discussing the stock market. Sophia asks, "Hey David, do you know what a bear market is?" Can you help David answer her question?

a)

market is on the rise and favorable.

b)

a prolonged drop in the market

c)

bull runs through town

d)

The Market Crashes

29.

Maya and William are discussing the stock market in their digital finance class. Maya says, "The Nasdaq composite is super popular these days because it's commonly accepted as a shorthand indicator for popular _______________ stocks in a digital age." Can you help William pick the right answer?

a)

agricultural

b)

technology

c)

industrial

d)

auto

30.

Lily and Daniel were chatting about how stock prices and the market can impact their lives. Can you guess which of these things are most affected by changes in the market?

a)

cell phones and text messaging

b)

Snap Chat and IG

c)

apples and oranges

d)

401K and Pensions

31.

Nora, Evelyn, and Luna are learning about the Stock Market in class. Their teacher asks: The Stock Market allows people like you to have a __________________ in attempting to make money in our capitalist system. What do you think it is?

a)

no risk

b)

healthy risk

c)

huge risk

d)

bank loan

32.

Imagine Arjun, David, and Benjamin are gearing up to play The Stock Market Game! Excluding any interest earned, how much starting cash does each team receive to kick off their trading adventure?

a)

$10,000

b)

$50,000

c)

$100,000

d)

$200,000

33.

Grace and Zoe are curious: Does The Stock Market Game reward players with dividends?

a)

Yes

b)

No

34.

Sophia and Olivia are excited to start investing! What is the minimum number of shares they need to buy to place their very first buy order?

a)

1 share

b)

5 share

c)

10 share

d)

20 share

35.

Imagine Aiden, Arjun, and Grace have just finished their trading session. Do they need to sell everything in their portfolios for cash before they call it a day?

a)

Yes

b)

No

36.

Scarlett and Ethan are tracking their favorite stock and want to know the highest and lowest prices it reached over the past year. What is this range called?

a)

price to earnings range

b)

market price

c)

52-Week Range

d)

beta

37.

Sophia and Mason are discussing stock market terms. Sophia asks, "Hey Mason, what do you call the stock's closing price from the previous day?" Can you help Mason answer her question?

a)

previous close

b)

52-Week Range

c)

P/E Ratio

d)

beta

38.

Emma, Kai, and Jackson are discussing how much risk they’d each take when investing, considering things like their age, time frame, lifestyle, and personality. What is this measure called?

a)

risk factors

b)

risk tolerance

c)

beta

d)

ticker

39.

Aria, Michael, and Avery each want to grow their savings, but they all have different ideas! Which risk management strategy involves spreading your investment dollars among different securities, sectors, and industries to keep things exciting and safe?

a)

price-to-earning ratio

b)

risk tolerance

c)

diversification

d)

risk

40.

Samuel, Avery, and Kai are discussing ways to keep their investments safe from unexpected surprises. Which of the following strategies can help them reduce the risks associated with their investments?

a)

diversification

b)

stock

c)

beta

d)

risk management