#1
Which of the following is a common reason for investing in stocks?
Guaranteed returns
High liquidity
Low risk
Potential for capital appreciation
#2
What does IPO stand for in the context of stock markets?
Initial Public Offering
Investment Portfolio Organization
Internal Public Offering
Initial Price Offering
#3
What is the primary function of a stockbroker?
To invest in stocks on behalf of clients
To advise clients on market trends
To facilitate buying and selling of securities on stock exchanges
To manage mutual funds
#4
What does the term 'market capitalization' refer to in the context of stocks?
The total number of shares outstanding for a company
The total value of all outstanding shares of a company
The price at which a stock was initially offered to the public
The difference between a stock's current price and its highest price
#5
Which of the following is a measure of a company's profitability?
Earnings per share (EPS)
Stock price volatility
Total assets
Market capitalization
#6
Which of the following is NOT a type of stock brokerage?
Discount brokerage
Full-service brokerage
Robo-advisory brokerage
Fixed-rate brokerage
#7
What is the role of a stock exchange in the stock market?
To provide loans to investors
To regulate stock prices
To facilitate buying and selling of securities
To manage corporate mergers
#8
What is the significance of the P/E ratio in stock analysis?
It indicates the amount of debt a company holds.
It measures the profitability of a company relative to its stock price.
It calculates the annual dividend payment per share.
It determines the company's market capitalization.
#9
What does the term 'blue chip stocks' refer to?
Stocks with a low market capitalization
Stocks of new and rapidly growing companies
Stocks of well-established, financially stable companies
Stocks with high volatility
#10
In the context of stock trading, what is a 'limit order'?
An order to buy or sell a security at the current market price
An order to execute a trade at a specific price or better
An order placed after market hours
An order with no specific price or time limit
#11
What does the term 'dividend yield' indicate to investors?
The rate of return on an investment
The amount of capital gain from a stock
The ratio of dividends to the current stock price
The volatility of a stock
#12
Which of the following is a fundamental analysis technique for evaluating stocks?
Price-earning growth ratio (PEG)
Relative Strength Index (RSI)
Moving Average Convergence Divergence (MACD)
Bollinger Bands
#13
Which of the following factors does NOT typically influence stock prices?
Company earnings reports
Interest rates
Government regulations
Weather conditions
#14
What is the primary advantage of a buy-and-hold investment strategy in stocks?
It allows for frequent trading to capture short-term gains.
It minimizes transaction costs associated with frequent trading.
It provides quick liquidity for investors.
It guarantees high returns over a short period.
#15
What does the term 'margin trading' mean?
Trading stocks with borrowed funds, using securities held as collateral
Buying and selling stocks within a short time frame
Exchanging stocks without involving a broker
Trading stocks at their face value