Securities Trading and Brokerage Quiz
Explore securities trading with questions on bid, orders, regulatory bodies, and more. Test your understanding of the stock market!
#1
What does the term 'bid' refer to in securities trading?
The price at which a security is offered for sale
The price at which a security is demanded for purchase
The difference between the ask and bid price
The price at which a security was last traded
#2
Which of the following is NOT a type of brokerage order?
Market order
Limit order
Stop order
Static order
#3
What is the 'spread' in securities trading?
The difference between the highest and lowest price of a security in a trading session
The difference between the price at which a security can be bought and the price at which it can be sold
The total value of all outstanding securities issued by a company
The ratio of the number of shares traded to the total number of shares outstanding
#4
What is a 'blue chip' stock?
A stock issued by a company with a low market capitalization
A stock of a well-established and financially stable company with a history of reliable performance
A stock with high volatility
A stock issued by a startup company
#5
What is a 'stock exchange'?
A physical location where stocks are bought and sold
A digital platform for trading cryptocurrencies
A government agency responsible for regulating securities trading
An investment fund managed by a brokerage firm
#6
What is the 'dividend yield' of a stock?
The total amount of dividends paid by a company divided by its market capitalization
The annual dividend income per share divided by the current market price per share
The ratio of dividends per share to the company's earnings per share
The percentage change in a stock's price over a specific period
#7
What is the role of a brokerage firm in securities trading?
To regulate the stock market
To provide investment advice
To execute trades on behalf of clients
To issue securities to the public
#8
What does 'short selling' refer to in securities trading?
Selling securities before they have been issued
Selling securities borrowed from a broker with the intention of buying them back later
Selling securities at a higher price than their current market value
Selling securities in a bear market
#9
What is the 'margin call' in securities trading?
A request for additional funds from a broker to cover losses in a trading account
A call from a shareholder to the company's management demanding a change in corporate strategy
A call from a regulatory authority to suspend trading of a particular security
A call from a company to its shareholders to vote on important issues
#10
What is the 'ticker symbol' of a security?
A unique code assigned to a security for trading purposes
The annual interest rate paid on a bond
The legal document outlining the terms and conditions of a bond
The financial ratio measuring a company's ability to pay off its short-term liabilities
#11
What is a 'market maker'?
An individual investor who buys and sells securities on a stock exchange
A brokerage firm that matches buy and sell orders in the market
A financial institution that provides loans to companies for securities trading
A regulatory authority responsible for overseeing stock exchanges
#12
What does the 'P/E ratio' indicate about a stock?
The company's debt-to-equity ratio
The percentage of the company's earnings paid out as dividends
The ratio of the company's market value to its book value
The price of the stock relative to its earnings per share
#13
Which regulatory body oversees securities trading in the United States?
Securities and Exchange Commission (SEC)
Federal Reserve System (FRS)
Financial Industry Regulatory Authority (FINRA)
Commodity Futures Trading Commission (CFTC)
#14
What is 'arbitrage' in securities trading?
The process of buying and selling securities to profit from price differences in different markets
The practice of selling securities without owning them in the hope of buying them back at a lower price
The act of illegally manipulating the price of a security
The process of splitting a security into smaller denominations
#15
What is 'insider trading'?
The practice of buying and selling securities based on confidential information not available to the public
The act of trading securities without proper authorization from a brokerage firm
The process of issuing new securities to raise capital for a company
The manipulation of stock prices by large institutional investors
#16
What is 'securities lending'?
The process of issuing new securities to raise capital for a company
The practice of temporarily transferring securities from one investor to another in exchange for a fee
The manipulation of stock prices by large institutional investors
The act of buying and selling securities rapidly to exploit short-term price differences
#17
What is 'capital gains tax'?
A tax on the profit from the sale of a capital asset
A tax on the total market value of a company's outstanding shares
A tax on the dividends paid out to shareholders
A tax on the interest earned on investments
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Trading
Popular Quizzes in Finance
Report