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Stock Market Basics

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

Share

  • sh – like sh in shoe

  • are – sounds like air

  • Rhymes with care

What is a share?

a)

A unit of ownership in a corporation or mutual fund.

b)

A type of financial instrument that represents a loan to a company.

c)

A document that certifies ownership of a property.

d)

A form of currency used in trading.

2.

Diversification

a)

A strategy to increase the number of investments in a portfolio to maximize returns.

b)

A risk management technique that mixes a wide variety of investments within a portfolio to minimize risk by combining different investments whose prices are not likely to move in step with one another.

c)

A method of investing in a single asset to achieve higher returns.

d)

A technique used to analyze the performance of a single investment.

3.

Risk

Rhymes with: disk, brisk

a)

The chance of losing all or part of the value of an investment.

b)

A method of increasing the value of an investment.

c)

A guarantee of profit from an investment.

d)

The process of diversifying an investment portfolio.

4.

Long Position

a)

The condition of owning stock.

b)

A strategy to short sell stocks.

c)

A type of bond investment.

d)

A method to hedge against losses.

5.

Ticker Symbol

Tick‑er | sym‑bol

a)

A unique group of letters that identifies a company’s stock on an exchange.

b)

A numerical code representing a company's financial performance.

c)

A graphical representation of stock market trends.

d)

A legal document required for stock trading.

6.

Short Position

a)

The condition of having sold a stock short. The value of a short position is a stock's current share price multiplied by the number of shares sold short.

b)

A strategy where an investor buys stocks expecting their prices to rise.

c)

A type of investment where the investor holds onto stocks for a long period.

d)

A method of trading that involves only buying stocks.

7.

Dividend

DIV‑ah‑dend

a)

A type of stock that pays interest

b)

Portion of a company’s profits (earnings) that may be paid to stockholders.

c)

A fee charged by brokers for trading stocks

d)

A government bond that pays dividends

8.

Stock

stock/stɑk/

Rhymes with: rock, clock, block

What is a stock?

a)

A type of security that signifies ownership in a corporation and represents a claim on a part of the corporation’s profit (or loss).

b)

A type of bond that guarantees fixed interest payments.

c)

A form of currency used in international trade.

d)

A type of insurance policy for businesses.

9.

Stockholders/Shareholders

STAHK‑hohl‑derz

SHAIR‑hohl‑derz

a)

One who owns shares in a business.

b)

A person who manages a company's operations.

c)

An individual who invests in bonds.

d)

A stakeholder in a company's decision-making process.

10.

NASDAQ

  • nasnaz (short a like in cat)

  • daqdak (rhymes with back)

What is NASDAQ?

a)

A stock exchange where trades are made on a physical floor.

b)

An electronic exchange where stocks are traded through an automated network of computers instead of a trading floor.

c)

A platform for cryptocurrency trading.

d)

A government agency that regulates stock trading.

11.

Short-Term Goals

a)

Something you want to do in the near future (e.g., bike, shoes, video games).

b)

A long-term aspiration that takes years to achieve.

c)

A vague idea without a specific timeline.

d)

An objective that is not measurable.

12.

Long-Term Goals

a)

Something you want to do in the future, usually several years away (e.g., saving for college, buying a home, retirement).

b)

A short-term objective that can be achieved within a few weeks or months.

c)

A goal that is not specific and lacks a timeline.

d)

An aspiration that is only relevant to personal interests.

13.

New York Stock Exchange (NYSE)

New | York | Stock | Ex‑change

NOO york STAHK iks‑CHAYNJ

a)

The oldest and largest stock exchange in the United States.

b)

A major technology company based in New York.

c)

A financial regulatory body overseeing stock trading.

d)

A popular tourist destination in New York City.