#1
What does the term 'bull market' refer to in the stock market context?
A market with declining prices
A market with increasing prices
A market with stable prices
A market with no trading activity
#2
What is the purpose of a limit order in stock trading?
To execute a trade at the current market price
To buy or sell a stock at a specific price or better
To automatically liquidate a stock position
To track the overall market performance
#3
In the context of stock trading, what is a 'blue-chip stock'?
A low-priced stock with high potential for growth
A highly valued stock with a history of stable performance
A speculative stock with high risk and high potential return
A stock issued by a newly established company
#4
What does the term 'book value' of a company represent?
The total market value of a company's outstanding shares
The value of a company's assets minus its liabilities
The annual revenue generated by a company
The price of a stock on the day it was first issued
#5
In stock market terminology, what does the term 'long position' mean?
Buying a security with the expectation that its price will rise
Selling a security with the intention of buying it back later at a lower price
Buying a security with the intention of holding it for the long term
Selling a security with the expectation that its price will rise
#6
What is the formula for calculating the price-to-earnings ratio (P/E ratio) of a stock?
Market Price / Book Value
Dividend per Share / Earnings per Share
Market Price / Earnings per Share
Dividend per Share / Book Value
#7
What is the role of a stockbroker in stock market operations?
To issue new stocks
To buy and sell stocks on behalf of clients
To audit financial statements
To set interest rates
#8
What is the purpose of a stock split in the stock market?
To increase the overall market value of a stock
To decrease the number of outstanding shares and increase their value
To distribute profits to shareholders
To prevent hostile takeovers
#9
What does the term 'market capitalization' (market cap) represent in the stock market?
Total revenue of a company
Total assets of a company
Total outstanding shares multiplied by the stock price
Total dividends paid by a company
#10
What is the significance of the S&P 500 index in the stock market?
It measures the volatility of the stock market
It tracks the performance of 500 large-cap U.S. companies
It calculates the average price of 500 stocks
It indicates the total number of stocks traded in a day
#11
What is the significance of the Dow Jones Industrial Average (DJIA) in the stock market?
It measures the average volume of trades
It tracks the performance of 30 large publicly-owned companies
It calculates the total market capitalization
It indicates the exchange rate of the US dollar
#12
In options trading, what does the term 'strike price' refer to?
The price at which an option can be exercised
The opening price of a stock on a trading day
The price at which a stock was originally issued
The average price of a stock over a specific period
#13
In technical analysis, what does the term 'moving average' indicate?
The average price of a stock over a specific time period
The average volume of trades in a day
The rate of change in stock prices
The total market capitalization of a company
#14
What is the role of the Securities and Exchange Commission (SEC) in the stock market?
To set interest rates for stock trading
To regulate and oversee securities markets and protect investors
To issue new stocks to the public
To determine the value of stocks
#15
What is the significance of the term 'beta' in stock market analysis?
It measures the sensitivity of a stock's returns to market movements
It indicates the total market capitalization of a company
It represents the average trading volume of a stock
It calculates the annual dividend yield of a stock