#1
What does the term 'IPO' stand for in the stock market?
International Portfolio Offering
Initial Public Offering
Investment Placement Order
Internal Profit Obligation
#2
What is the role of a 'Bull' in the stock market?
Someone who sells stocks
Someone who predicts market downturns
Someone who buys stocks with the expectation of price increase
Someone who manages stock portfolios
#3
What does the term 'Dividend' represent in the context of stocks?
A type of stock
A government tax on stock transactions
A portion of a company's earnings distributed to shareholders
A fee charged by brokers for stock trades
#4
In stock market terminology, what does the acronym 'ETF' stand for?
Exchange-Traded Fund
Equity Trading Firm
Electronic Trading Facility
Earnings per Trade Fund
#5
What is the primary function of a stockbroker in the stock market?
To issue new stocks for companies
To facilitate the buying and selling of stocks on behalf of clients
To set stock prices on the market
To regulate stock exchanges
#6
What is the 'Ticker Symbol' of a stock used for?
To identify the industry sector of the company
To indicate the country where the company is based
To uniquely identify a specific stock on an exchange
To represent the company's founding year
#7
Which financial instrument represents ownership in a company?
Bond
Derivative
Stock
Option
#8
What is the significance of the 'P/E ratio' in stock analysis?
It indicates the profitability of a company
It measures the company's debt level
It assesses the market sentiment towards a stock
It evaluates the stock's price relative to earnings per share
#9
What is the function of a 'Limit Order' in stock trading?
To buy or sell a stock at the current market price
To execute a trade at the best available price
To buy or sell a stock at a specific price or better
To place an order without specifying a price
#10
What does 'Blue Chip' refer to in the stock market?
A high-value poker chip used in stock trading competitions
Stocks of well-established, financially stable, and reputable companies
A type of stock index
A term for volatile and risky stocks
#11
What is the significance of the Dow Jones Industrial Average (DJIA) in the stock market?
It represents the total market capitalization of all listed companies
It tracks the performance of 30 large, publicly-owned companies in the U.S.
It measures the volatility of stock prices
It calculates the average dividend yield of a stock
#12
What does the term 'Market Capitalization' refer to in stock analysis?
The total value of a company's outstanding shares of stock
The total revenue generated by a company in a fiscal year
The total number of employees in a company
The total assets of a company
#13
What does the term 'Short Selling' refer to in the stock market?
Borrowing money to buy stocks
Selling a stock with the intention to buy it back at a lower price
Investing in stocks for the long term
Buying stocks on margin
#14
What is the primary purpose of the Securities and Exchange Commission (SEC) in the U.S.?
To manage and regulate stock exchanges
To protect investors and maintain fair and efficient markets
To provide financial advice to individual investors
To determine stock prices
#15
What is the purpose of a 'Stop-Loss Order' in stock trading?
To limit losses by automatically selling a stock if its price falls below a specified level
To execute a trade at the best available price
To buy or sell a stock at a specific price or better
To place an order without specifying a price
#16
What is the purpose of the 'Federal Reserve' in relation to the stock market?
To regulate and oversee stock exchanges
To set interest rates and implement monetary policy
To manage stock market investments for the government
To determine stock prices
#17
What is the primary purpose of a 'Proxy Statement' in relation to shareholders?
To authorize someone to vote on behalf of a shareholder
To request a stock trade on behalf of a shareholder
To disclose information about executive compensation and corporate governance
To announce shareholder dividends