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Introduction to the stock market

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

An example of a primary market transaction is:

a)

a new issue of common stock by AT&T

b)

a sale of some outstanding common stock of AT&T by an investor

c)

AT&T repurchasing its own stok from a stokholder

d)

All of the above

2.

Who can buy stocks in the stock market?

a)

Everyday investors

b)

Only the rich and powerful

c)

Government organizations

d)

Large corporations

3.

Why do professionals promote long term investing?

a)

Because it increases the chances of success

b)

Because it guarantees quick cash

c)

Because it is less risky

d)

Because it is easier to track

4.

What is a broker?

a)

A person who helps investors buy and sell stocks

b)

A type of stock that pays high dividends

c)

A company that produces financial news

d)

A person who manages real estate investments

5.

The NYSE and the NASDAQ are both examples of _____________________.

a)

stocks

b)

markets

c)

stock exhanges

d)

securities and exchanges

6.

What is it called when the stock market rises for a period of time?

a)

bull market

b)

bear market

c)

stock market

d)

growth market

7.

What is a dividend?

a)

A stock that is issued in portions

b)

An amount of money paid to the shareholders

c)

Another way for an investor to earn profit

d)

An investor who sells their share of stocks lower than the purchase price

8.

What is an IPO?

a)

Initial Public Offering

b)

International Payment Order

c)

Internal Profit Objective

d)

Independent Payment Option

9.

FinTech platforms such as Zerodha and Groww are known for:

a)

High brokerage charges

b)

Limited retail access

c)

Zero or low brokerage trading

d)

Trading only in commodities

10.

SEBI became a statutory body in:

a)

1988

b)

1920

c)

1991

d)

1992

11.

Depository services in India are provided by:

a)

RBI and SEBI

b)

NSE and BSE

c)

NSDL and CDSL

d)

SBI and ICICI

12.

Which factor significantly increased retail participation in stock markets?

a)

Increase in interest rates

b)

Online trading platforms

c)

Ban on physical trading

d)

Decline in mutual funds

13.

Dematerialization refers to:

a)

Issue of bonus shares

b)

Elimination of physical share certificates

c)

Conversion of shares into cash

d)

Online trading of commodities

14.

The National Stock Exchange (NSE) was established in:

a)

1988

b)

1992

c)

1994

d)

1996

15.

The National Stock Exchange (NSE) was established in:

a)

1988

b)

1992

c)

1994

d)

1996

16.

Which of the following was a regional stock exchange?

a)

NSE

b)

BSE

c)

Calcutta Stock Exchange

d)

SEBI

17.

The BSE was founded by:

a)

Dadabhai Naoroji

b)

Ratan Tata

c)

J.R.D. Tata

d)

Premchand Roychand

18.

GIFT City is developed as:

a)

An international financial services centre

b)

A manufacturing hub

c)

An industrial township

d)

A rural development zone

19.

SIPs are commonly associated with:

a)

Equity shares

b)

Bonds

c)

Mutual Funds

d)

Derivatives

20.

Online trading platforms mainly benefit:

a)

Only brokers

b)

Only institutions

c)

Retail investors

d)

Government