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Stock Market

Stock Market Test

40 Questions




Stock Market
Stock Market 

1. What is the stock market?

A A type of farmers market where people buy and sell food.

B A place where parts of businesses are bought and sold.

C A special type of grocery store that sells stocks.

D A type of bank that gives out loans to new businesses.

2. The name for a part of a business that is bought and sold on the stock market is:

A Part B Marker

C Share D Stocker

3. Why would a company need to issue stock?

A To stop the government from regulating it. B To show customers that it's successful.

C To raise money. D To increase its' customer base.

4. When you own stock in a company,

A you are involved in day to day management.

B you are the CEO.

C you are part owner. D you are entitled to a dividend.

5. IPO stands for

A Initial Primary Offering B Imminent Profitable Option

C Itemized Public Organization D Initial Public Offering

6. The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW

Jones Industrial Average important?

A It tells Americans how many jobs are out there.

B It provides a snapshot of how the stock market and the US economy is doing.

C It tells Americans how much debt the country is in.

D It helps economists predict when a stock market crash will happen.

7. The current price of one share of stock is called

A Open B Ask

C Bid D Last

8. The highest price the stock has traded over the past year is called

A Market Cap Market Cap

B 52 Week High

C Beta D Day High

9. The number of shares that have been traded in the current or most recent trading session is called

A Volume B Dividend

C Last Last

D Previous Close

10. A company owned by families or a small number of investors and do not issue stock to the public.

A private company B portfolio

C public company D industry

11. People who own stocks are guaranteed a return on the money they have invested in stocks.



The possibility of losing some or all of a particiular investment.

A index B industry

C profit D risk


A sum of money paid to shareholders of a corporation out of its earnings.

A index B dividend

C invest D profit


A group of large companies that stockbrokers look at to gauge how the market is doing as a whole.

A portfolio B index

C shareholder D industry

15. Not all companies offer dividends.

A false B true

16. A corporation “goes public” when it ___________________.

A has a big party and invites all its investors. B becomes an entity.

C gives out its first dividend. D first issues stock to investors to buy.

17. The NYSE and NASDAQ are forms of ________________ where people trade stocks.

A businesses B mutual funds

C large shopping centers D stock exchanges

18. Explain what an IPO is.

A It's when a company goes 'public' and offers its stock for sale for the first time.

B It's when another company buys a lot of stock in another company to take it over.

C It's when a company buys back a lot of its stock to gain control of the company.

19. How do you make money buying stocks?

A If you hold on to it as long as possible it will gain in value.

B The DOW ratings determine which stocks will pay out.

C You sell it for a higher price than you bought it for.

20. As long as you are 18 years old and have some money, you can invest it in the stock market.

A False B True

21. If a business wants to raise capital but not create debt, it can

A borrow money from a commercial bank B issue common stock

C float a bond issue D borrow money from the government

22. A Neon Oil Corporation tanker spilled oil in the ocean around Australia. As a result of this accident, the share price of this stock is likely to

A increase

B not be affected and remain about the same

C fluctuate D decrease

23. Which of the following best describes diversification?

A reducing risk by investing in different types of securities

B Avoiding risk by investing in blue-chip stocks

C investing in different types of bonds

D putting all your investments in two financial investments

24. The group of stocks that you own is called a

A portfolio B dividend

C commission

25. A time when stock prices are RISING is called

A transaction B bear market

C bull market

26. When the market takes a downhill turn and prices are decreasing

A Bear B No such term

C Bronco D Bull

27. The Dow Jones Industrial Average is an example of

A A Stock Market Performance Index B a Stock Market Exchange

C a Mutual Fund D a Brokerage Firm

28. What is the name of the most well know stock exchange?

A The New York Stock Exchange (NYSE) B The Louvre

C The Imperial Stock Exchange D The Boston Stock Exchange

29. An index that measures the average health of 30 large, publicly owned, US companies is called the...?

A Bob Johnson's Index B Guess Again Index

C The S&P 500 D Dow Jones Industrial Average (DJIA)

30. Which of the following is NOT a stock index?



31. Can interest rates affect the stock market?


32. Do more or fewer people invest in the stock market when interest rates go up?


33. Not having all your stocks in one industry (airlines, food, etc) is called

A Portfolio B Trading

C Directing D Diversifying

34. What are the two general types of stocks? CHOOSE TWO

A Deferred B Common

C Preferred D Certificate of Deposit

35. The two major stock exchanges are

A NASDAQ & NYSE B Dow Jones Industrial Average & S&P 500


36. What is a bond?

A an investment that cannot be traded

B lending money to a company for a fixed interest payment

C a share of ownership in a company D a building on wall street


What is a stock market crash?

A when one or two stocks drop signifiicantly

B rapid and unanticipated drop in stock prices

C rapid but anticipated drop in stock prices D slow decrease in stock prices over a year


A stock market crash can be brought on by

A major catastrophic event B economic crisis

C collapse of a stock bubble D all of these

39. What does NASDAQ stand for?

A National Application of Securities Dealers Automatic Quotations

B Nominal Association of Securities Dealers Automatic Quotations

C New Association of Securities Dealers Automatic Quotations

D National Association of Securities Dealers Automatic Quotations

40. How does a bear stock market impact the U.S. economy?

A Americans will invest more money in the stock market.

B Consumers will purchase more vacation homes.

C Americans will invest less money in the stock market.

D Consumers will purchase more large appliances.

Answer Key

1. b 2. c 3. c 4. c

5. d 6. b 7. d 8. b

9. a 10. a 11. a 12. d

13. b 14. b 15. b 16. d

17. d 18. a 19. c 20. b

21. b 22. d 23. a 24. a

25. c 26. a 27. a 28. a

29. d 30. a 31. b 32. a

33. d 34. 35. a 36. b

37. b 38. d 39. d 40. c

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