#1
What is the term used to describe a measure of the change in value of a stock portfolio over time?
Stock volatility
ExplanationMeasure of portfolio value change over time
#2
Which of the following represents a basic principle of investing?
Low risk, high reward
ExplanationBasic principle of investing
#3
What does the term 'bull market' refer to in the context of the stock market?
A market characterized by rising prices and investor optimism
ExplanationRising prices and optimism
#4
Which of the following is NOT a common type of stock?
Blue-chip stock
ExplanationNot a common type of stock
#5
What is the meaning of 'market capitalization' (market cap) in the context of stocks?
The total value of all outstanding shares of a company
ExplanationTotal value of outstanding shares
#6
What does EPS stand for in the context of stock market analysis?
Earnings Per Share
ExplanationEarnings per share
#7
What does the P/E ratio measure?
Price and Earnings
ExplanationPrice-to-earnings ratio
#8
What is the significance of the Dow Jones Industrial Average (DJIA) in the stock market?
It tracks the performance of 30 large-cap stocks
ExplanationTracks performance of 30 large-cap stocks
#9
What is the role of a stockbroker in the stock market?
To facilitate buying and selling of securities on behalf of clients
ExplanationFacilitates buying and selling for clients
#10
Which of the following best describes the term 'dividend'?
A portion of a company's profits distributed to its shareholders
ExplanationPortion of profits distributed to shareholders
#11
What is the term for a financial instrument that represents ownership in a company?
Equity
ExplanationFinancial instrument representing ownership
#12
What is a 'market order' in stock trading?
An order to buy or sell a security at the best available price in the current market
ExplanationBuy or sell at best available price
#13
What does the term 'volatility' refer to in the context of the stock market?
The degree of uncertainty or variation in the price of a financial instrument
ExplanationDegree of price uncertainty or variation
#14
What is the significance of the Federal Reserve's monetary policy decisions on the stock market?
They influence interest rates, which affect stock prices and investor behavior
ExplanationInfluence interest rates and investor behavior
#15
What does the term 'market capitalization' represent?
The total value of all outstanding shares of a company
ExplanationTotal value of outstanding shares