WorksheetsHigh School Business Vocabulary Quiz
Total questions: 48
Worksheet time: 24mins
What does owning a stock represent?
A loan to a company
A unit of ownership in a company
A guaranteed profit
A company’s total value
What is a stock exchange?
A place where companies are created
A marketplace where stocks are bought and sold
A government agency that controls prices
A type of investment account
What is a ticker symbol?
The company’s full legal name
A short code that identifies a company’s stock
The price of a stock
A stock market index
How is market capitalization calculated?
Earnings ÷ shares
Share price × number of shares
Dividends × years
Revenue − expenses
What does stock volume measure?
The price of a stock
The number of shares traded in a time period
Company profits
Market value
Which best describes liquidity?
How risky an investment is
How much profit an investment makes
How easily an asset can be turned into cash
How long an investment lasts
What does volatility refer to?
How often dividends are paid
How stable a company is
How much a stock’s price changes
How old a company is
What happens in a bull market?
Prices fall and fear increases
Prices rise and confidence is high
Trading stops
Only bonds perform well
A bear market is best described as:
Rising prices and optimism
Stable prices
Falling prices and pessimism
A one-day market drop
What is a dividend?
A tax paid by investors
A company loss
A cash payment to shareholders
A stock split
What does the P/E ratio help investors evaluate?
Company size
Stock risk only
Whether a stock is fairly valued
Dividend payments
Why do investors diversify?
To increase taxes
To reduce risk
To guarantee profits
To avoid stocks
What is a portfolio?
A single stock
A savings account
A collection of investments
A stock exchange
What best describes an ETF?
A single company stock
A government bond
A basket of investments traded like a stock
A type of savings account
What is a mutual fund?
A loan to the government
A professionally managed pool of investor money
A stock index
A trading order
What is the goal of an index fund?
Beat the market
Avoid risk entirely
Match the performance of a market index
Pay high dividends
Blue-chip stocks are shares of companies that are:
Small and new
High-risk startups
Large and financially stable
Government-owned
A growth stock usually:
Pays high dividends
Grows faster than average and reinvests profits
Never changes price
Has low risk
A value stock is typically:
Overpriced
Brand new
Undervalued compared to fundamentals
Guaranteed to rise
What does risk tolerance measure?
Market performance
How much risk an investor is willing to take
Stock volatility
Company debt
What is a capital gain?
A dividend payment
A tax deduction
Profit from selling an investment for more than paid
Interest earned
A capital loss occurs when:
A dividend is paid
An investment is sold for less than paid
A stock splits
Prices rise
What is the bid-ask spread?
Stock volatility
Dividend yield
Difference between bid and ask prices
Market capitalization
Short selling is a strategy used to:
Buy and hold stocks long-term
Bet that a stock’s price will fall
Increase dividends
Reduce taxes
What happens during an IPO?
A stock splits
A company goes bankrupt
A private company sells stock to the public
A bond matures
What does EPS measure?
Revenue per employee
Profit per share
Market value
Dividend payments
A market order:
Guarantees a specific price
Buys or sells immediately at current price
Only works after hours
Is used for bonds only
A limit order allows an investor to:
Trade immediately
Control the price of a trade
Avoid all risk
Buy IPOs only
The bid price is:
The seller’s lowest price
The buyer’s highest offer
The market average
The last traded price
The ask price is:
The buyer’s highest offer
The lowest price a seller will accept
Yesterday’s closing price
A guaranteed price
What is a market index?
A single stock
A measure of market performance
A mutual fund
A trading order
What is a brokerage account used for?
Paying taxes
Buying and selling investments
Receiving dividends only
Storing cash with no risk
A brokerage is best described as:
An investor
A stock exchange
A company that executes trades
A government regulator
A sector groups companies based on:
Stock price
Country
Industry
Market cap
A market correction is:
A crash over 50%
A 10% or more short-term drop
Illegal trading
A dividend cut
What happens in a stock split?
Company value increases
Shares are divided into more shares
Investors lose money
Dividends stop
A bond represents:
Ownership in a company
A loan to a company or government
A stock index
A trading order
Corporate bonds are usually:
Risk-free
Issued by the government
Higher risk than government bonds
Tax-free
Government bonds are considered:
Very risky
Short-term stocks
Very safe investments
Junk bonds
What happens on a bond’s maturity date?
Interest stops permanently
The bond defaults
The principal is repaid
The coupon rate changes
The coupon rate is:
Bond price
Interest rate paid on a bond
Bond maturity
Bond rating
Bond yield represents:
The bond’s face value
The return earned by the investor
The maturity date
The issuer’s profit
A bond default occurs when:
Interest rates rise
The issuer fails to pay as promised
The bond matures
The bond is sold
Junk bonds are known for:
Low risk and low return
High risk and high interest
Government backing
No interest payments
Municipal bonds are issued by:
Corporations
The federal government
Cities and states
Foreign companies
A callable bond allows the issuer to:
Raise the coupon rate
Delay maturity
Pay off the bond early
Avoid interest payments
Investment-grade bonds are considered:
High risk
Safe with lower yields
Speculative
Short-term only
Bond ratings indicate:
Bond price
Time to maturity
Credit risk level
Interest payments
