WorksheetsIndexes, Selling Short ,and The Stock Market Game
Total questions: 40
Worksheet time: 20mins
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.
sell
hold
borrow
lend
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?
Short cover
Long buy
Margin call
Maintenance requirement
Avery and William are learning about borrowing shares. When you borrow shares, you must ______ them upon demand. What should they do?
return
sell
keep
hide
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?
True
False
Mia and Harper are competing in the Stock Market Game! To avoid a margin call, what maintenance requirement percentage do they need to remember?
30%
10%
50%
75%
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?
An account that allows you to borrow against stocks and other securities deposited into the account
An account that only holds cash
An account for long-term investments only
An account that does not allow borrowing
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?
lend
borrow
sell
buy
David and Mia are competing in a virtual stock market game. Suppose you had a balance of 68,899anddecidedtoshortsell200sharesofSouthernCompanyat 270 per share, just like David did. What is the total value of the short sale?
$54,000
$27,000
$13,500
$75,000
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?
$1,080
$1,200
$1,000
$1,500
Michael just sold some stocks and received a balance of 68,899 . After paying a broker’s fee of 1,080 , what is Michael’s new balance?
$67,819
$67,809
$68,819
$67,099
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?
Sell shares you own
Buy back the stock originally borrowed from the broker for the short sell
Buy new shares
None of the above
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?
$40,000
$20,000
$4,000
$2,000
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?
$800
$400
$1,200
$2,000
Scarlett just received a balance of 67,819 in her account. After paying a broker’s fee of 800 , what will Scarlett’s new balance be?
$67,019
$67,819
$66,819
$68,619
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?
(Previous week’s closing price - short cover price) x number of shares + balance
(Short cover price - previous week’s closing price) x number of shares + balance
Number of shares x short cover price
Balance - broker’s fee
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?
$81,019
$80,000
$82,500
$79,450
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?
indexes
supers
prices
networks
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?
500
30
2
5
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?
health
spirt
hope
networks
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?
2%
1%
20%
75%
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?
True
False
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 ____________.
High, Low
Low, High
Even, High
All of the above
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?
Unicorn
Bear
Wall
Bull
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.
smallest
worst
domestic
largest
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?
happy
a company
publicly
all of the above
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?
US Stock Market
Dow Jones Industrial Average/Index
Picasso Principle of Investing
Bull and Bear Market
Aria and Hannah are discussing the stock market. Aria says, "A bull market is when _____________________________." Can you help her fill in the blank?
a rise in the market and favorable conditions
a prolonged drop in the market
bull runs through town
The Market Crashes
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?
market is on the rise and favorable.
a prolonged drop in the market
bull runs through town
The Market Crashes
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?
agricultural
technology
industrial
auto
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?
cell phones and text messaging
Snap Chat and IG
apples and oranges
401K and Pensions
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?
no risk
healthy risk
huge risk
bank loan
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?
$10,000
$50,000
$100,000
$200,000
Grace and Zoe are curious: Does The Stock Market Game reward players with dividends?
Yes
No
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?
1 share
5 share
10 share
20 share
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?
Yes
No
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?
price to earnings range
market price
52-Week Range
beta
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?
previous close
52-Week Range
P/E Ratio
beta
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?
risk factors
risk tolerance
beta
ticker
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?
price-to-earning ratio
risk tolerance
diversification
risk
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?
diversification
stock
beta
risk management
