#1
What is the meaning of the term 'bull market' in the stock market?
A market with decreasing stock prices
A market with increasing stock prices
A market with no change in stock prices
A market with high volatility
#2
Which of the following represents ownership in a company?
Bond
Stock
Mutual Fund
Certificate of Deposit (CD)
#3
What does the term 'market capitalization' represent for a company?
The total revenue of the company
The total assets of the company
The total debt of the company
The total market value of the company's outstanding shares
#4
What is a 'bear market' in the context of the stock market?
A market with increasing stock prices
A market with decreasing stock prices
A market with no change in stock prices
A market with high volatility
#5
What is the concept of 'diversification' in investment?
Investing in a single asset class to maximize returns
Spreading investments across different assets to reduce risk
Investing only in high-risk securities
Investing without considering market conditions
#6
What does the term 'market cap' stand for?
Market Capitalization
Market Capital
Market Currency
Market Category
#7
What does the P/E ratio (Price-to-Earnings ratio) measure?
The company's debt level
The company's profitability
The company's market share
The company's liquidity
#8
What is the role of a stockbroker in the stock market?
To buy and sell stocks on behalf of clients
To audit company financial statements
To issue new stocks to the market
To set stock prices
#9
What is the purpose of a stock split?
To increase the company's debt
To decrease the number of outstanding shares
To increase the number of outstanding shares
To change the company's management
#10
What does the term 'blue-chip stocks' refer to?
Stocks with low market capitalization
Stocks of well-established and financially stable companies
Stocks with high price volatility
Stocks of newly listed companies
#11
What is the primary function of the Securities and Exchange Commission (SEC) in the United States?
To regulate and oversee the stock market
To set interest rates
To manage government spending
To control inflation
#12
What is the significance of the Federal Reserve in the U.S. economy?
To regulate and oversee the stock market
To set monetary policy and control the money supply
To manage government spending
To control inflation
#13
What is the role of a market index, such as the S&P 500, in the stock market?
To set interest rates
To measure the performance of a specific group of stocks
To regulate government spending
To control inflation
#14
What is the significance of the Dividend Yield when evaluating stocks?
It measures the volatility of the stock
It indicates the percentage return on investment through dividends
It measures the stock's price-to-earnings ratio
It indicates the company's total revenue
#15
What is the significance of the Dow Jones Industrial Average (DJIA) in the stock market?
It measures the performance of 1000 small-cap stocks
It measures the performance of 30 large, publicly-owned companies
It measures the performance of technology stocks
It measures the performance of international stocks
#16
What is a 'stop-loss order' in stock trading?
An order to buy a stock at a specific price
An order to sell a stock at a specific price to limit losses
An order to sell a stock at any price
An order to hold a stock indefinitely
#17
What does the term 'liquidity' refer to in the stock market?
The ease of buying or selling an asset without affecting its price
The total number of outstanding shares of a company
The total assets of a company
The total market value of a company's outstanding shares
#18
What is the significance of the 52-week high and low for a stock?
It indicates the stock's current price
It reflects the highest and lowest prices the stock has reached in the past year
It represents the stock's dividend yield
It measures the stock's earnings per share
#19
What is the difference between a market order and a limit order in stock trading?
A market order allows you to buy or sell at a specific price, while a limit order executes at the current market price
A market order executes immediately at the current market price, while a limit order sets a specific price for execution
Both market and limit orders execute at a specific price set by the investor
A limit order allows you to buy or sell at any price
#20
What is the concept of 'beta' in relation to stock risk?
It measures the stock's current price
It measures the stock's earnings per share
It assesses the stock's sensitivity to market movements
It represents the stock's dividend yield