#1
What is a stock?
A type of currency
A type of bond
A share in the ownership of a company
A form of insurance
#2
What does IPO stand for in the context of the stock market?
Initial Public Offering
Investment Portfolio Organizer
Individual Purchase Order
International Public Offering
#3
What is the purpose of dividends in stock market investing?
To increase the stock price
To provide voting rights to shareholders
To distribute profits to shareholders
To decrease the company's liabilities
#4
What is the term used to describe the practice of buying and selling securities rapidly within the same trading day?
Long-term investing
Swing trading
Day trading
Value investing
#5
What is the role of a stockbroker in stock market transactions?
To issue stocks
To regulate the stock market
To facilitate buying and selling of stocks on behalf of investors
To provide financial advice to companies
#6
What is the significance of the stock market index?
It measures the overall performance of the stock market
It predicts the future price of individual stocks
It determines the value of a company's stock
It calculates the dividends of a stock
#7
What is the term used to describe a sudden and significant decline in the stock market?
Bull market
Bear market
Recession
Crash
#8
What is the P/E ratio used for in stock market analysis?
To measure a company's debt
To measure a company's profitability
To measure a company's market capitalization
To measure a company's growth potential
#9
What does the Dow Jones Industrial Average (DJIA) measure?
The performance of technology stocks
The performance of small-cap stocks
The performance of 30 large publicly-owned companies
The performance of international stocks
#10
What is a blue-chip stock?
A stock with a low market capitalization
A stock from a well-established and financially stable company
A stock that is highly speculative
A stock with high volatility
#11
What is a limit order in stock trading?
An order to buy or sell a security at the current market price
An order to buy or sell a security at a specified price or better
An order to buy or sell a security with no restrictions
An order to buy or sell a security with high volatility
#12
What does the term 'market capitalization' refer to in the context of stocks?
The total value of a company's outstanding shares
The total revenue generated by a company
The total number of shareholders in a company
The total number of employees in a company
#13
What is the term used to describe a strategy of investing in a diverse range of assets to spread risk?
Diversification
Concentration
Speculation
Leveraging
#14
What is the primary function of a stock exchange?
To facilitate the trading of stocks and other securities
To provide loans to investors
To regulate the stock market
To provide financial advice to companies
#15
What are the two main types of stock analysis?
Technical and fundamental analysis
Economic and political analysis
Qualitative and quantitative analysis
Micro and macro analysis
#16
What is the role of a custodian in the stock market?
To manage a company's marketing strategy
To manage a company's financial records
To hold and safeguard securities on behalf of clients
To regulate the stock market
#17
What is the role of a clearinghouse in stock trading?
To issue new stocks to the market
To facilitate communication between buyers and sellers
To hold securities and ensure transactions are settled properly
To provide financial advice to investors