#1
Which of the following best defines a stock market?
A market where securities are bought and sold
ExplanationStock market: a platform for trading securities.
#2
What does IPO stand for?
Initial Public Offering
ExplanationIPO: Initial Public Offering of company shares.
#3
Which of the following is NOT a characteristic of a bull market?
Declining economy
ExplanationBull market: characterized by rising prices despite economic downturns.
#4
What is the purpose of a limit order in securities trading?
To buy or sell a security at a specified price or better
ExplanationLimit order: specifies a price for buying or selling securities.
#5
What is the primary role of a stock exchange?
To provide a platform for buying and selling securities
ExplanationStock exchange: facilitates trading of securities among investors.
#6
What is the role of a market maker in the securities market?
To facilitate trading by matching buy and sell orders
ExplanationMarket maker: ensures liquidity by matching buyers and sellers.