Stock Market Quiz

Question 0

Blue Chip Stocks

Answer 0

Stock of a well-established and financially-sound company that has demonstrated its ability to pay dividends in both good and bad times.

Prices Fluctuate the least with these.
They offer the smallest returns.

Question 1

Common Stock

Answer 1

In this type of stock, investors are voting owners of the company. The owners share in the success if company profits, but are at risk if the company falters.

Question 2

Large Cap Stocks

Answer 2

Stocks issued by companies having a market capitalization between $10 billion and $200 billion (The Big Kahunas!)

Question 3

Mid Cap “Secondary Stocks”

Answer 3

$2 billion to $10 billion

Question 4

Small Cap Companies “Growth Stocks”

Answer 4

$300 million to $2 billion

Question 5

Penny Stocks

Answer 5

A stock that sells for less than $1 a share.

These are the riskiest to invest in.
The gains can be huge, but so can the losses!

Question 6

Sector Stocks

Answer 6

A mutual fund whose objective is to invest in a particular industry or sector of the economy to capitalize on returns.

Question 7

52 Week High/Low

Answer 7

The highest and lowest prices paid for the stock over the past year.

High/Low:
The highest and lowest prices paid for the stock on that day.

Question 8

Close

Answer 8

The price paid for the stock in the last trade of the day.

Question 9

Percent Yield

Answer 9

Equal to the dividend as a percentage of the stock price.

Question 10

Capital Gains

Answer 10

The difference between from when you bought and sold a stock or fund.

Question 11

P/E Ratio (Price to Earnings)

Answer 11

Equal to the stock’s current price divided by the company’s earnings per share from the previous year.

Question 12

Bear Market

Answer 12

A market condition in which the prices of securities are falling or are expected to fall.

Question 13

Bear

Answer 13

An investor who acts on the belief that a security or the market is falling or is expected to fall.

Question 14

Bull

Answer 14

An investor who thinks the market, a specific security, or an industry will rise. 


Question 15

Bull Market

Answer 15

A market in which prices of a certain group of securities are rising or are expected to rise.

Question 16

Dow Jones Average

Answer 16

A price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

Often referred to as “the Dow,” the DJIA is the oldest and single most watched index in the world. The DJIA includes companies like General Electric, Disney, Exxon, and Microsoft.

Question 17

S&P 500

Answer 17

An index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index, with each stock’s weight in the index proportionate to its market value.

Question 18

Selling Short

Answer 18

Borrow shares from your broker, then sell them and get money

Question 19

Share Cover

Answer 19

Buying shares back after borrowing them

Question 20

Stock

Answer 20

A type of security thatsignifies ownership in a corporationand represents a claimon part of thecorporation’s assets and earnings.

Question 21

Share

Answer 21

Portion of stock

Question 22

Mutual Fund

Answer 22

A security that gives small investors access to a well diversified portfolio of stock, bonds, and other securities.

Question 23

Portfolio

Answer 23

Thegroup of assets–such as stocks, bonds and mutual funds–held by an investor.

To reduce their risk, investors tend to hold more than just a single stock or other asset. Think of this as a pie; each chunk is divided up into specific assets such as bonds, equities, etc. 


Question 24

Dividend

Answer 24

A cash payment from profits announced by a company’s board of directors and distributed among stockholders.

Question 25

Going Public or Initial Public Offering (IPO)?

Answer 25

The process of selling shares that were formerly privately held to new investors for the first time.

Question 26

SEC (Securities Exchange Commission)

Answer 26

A government commission created by Congress to regulate the securities markets and protect investors.

The statutes administered by the SEC are designed to promote full public disclosure and protect the investing public against fraudulent and manipulative practices in the securities markets.

Question 27

Stock Split

Answer 27

Thedividing of a company’s existing stock into multiple shares.

Question 28

2-for-1 split,

Answer 28

Each stockholder receives an additional share for each share he or she holds.

Question 29

Reverse Split

Answer 29

Stocks are rolled back together

Question 30

Volatility

Answer 30

Astatistical measure of the tendency of a market or security to rise or fall sharply within a period of time.

A highly volatile market means that prices have huge swings in very short periods of time. 

You can figure this by comparing the 52 week high and low.

Question 31

Preferred Stocks

Answer 31

The type of stock in which owners do not have voting rights, but dividend payments are guaranteed

Question 32

Dip

Answer 32

A small decrease in the value of an investment that is quickly recovered.

Question 33

Spike

Answer 33

A small increase in a value of a stock that does not last long