Stock Market Test

1. What is the main risk of investing in a single stock?

It removes volatility The company may perform poorly and hurt the portfolio It avoids all market risk It guarantees higher returns

2. Why do companies sell stock?

To remove investors To avoid having customers To close the business To raise capital for growth, operations, or debt repayment

3. Do all stocks pay dividends?

No, not all stocks pay dividends Only losing companies pay dividends Only new companies pay dividends Yes, every stock must pay dividends

4. Why is diversification important?

It removes all risk It reduces dependence on one stock or sector It guarantees profit It stops market volatility

5. What is the primary market?

Where banks print money Where securities are sold for the first time Where crypto is mined Where investors only trade used cars

6. What is a growth stock?

A stock from a company expected to grow faster than average A stock that always pays high dividends A stock that cannot lose value A stock with no price movement

7. What is technical analysis?

Checking bank statements Studying price charts and market behavior Reading only earnings reports Studying tax law

8. What is a stock?

A government tax form A crypto wallet A share of ownership in a company A bank loan

9. What is ask price?

The highest price a buyer will pay The lowest price a seller is willing to accept A dividend date A broker password

10. What is bid price?

The highest price a buyer is willing to pay A company dividend A tax amount The lowest price a seller will accept

11. What is the Dow Jones Industrial Average?

A government tax form A stock market index tracking 30 major U.S. companies A company loan program A crypto project

12. Which sector includes everyday goods like food and household products?

Consumer Staples Technology Real Estate Energy

13. What is the secondary market?

Where loans are approved Where taxes are filed Where investors trade shares with each other after issuance Where companies sell shares for the first time only

14. What is a dividend stock?

A stock that pays regular income to shareholders A stock that only trades once a year A stock with no company behind it A stock that never pays investors

15. What is a ticker symbol?

A bank routing number A short code used to identify a publicly traded company A government license A company password

16. What is a dividend?

A company loan A broker password A payment some companies make to shareholders A stock exchange fee

17. What is fundamental analysis?

Only looking at chart patterns Only guessing prices Studying a company’s financial health and business value Only following social media

18. What is dollar-cost averaging?

Investing a fixed amount regularly over time Selling after every dip Putting all money in at once only Borrowing money to buy stocks

19. What is an ETF?

A crypto password A single private company A fund that holds a basket of assets and trades like a stock A bank savings account

20. What is liquidity in the stock market?

How many emails a broker sends How many employees a company has How easily a stock can be bought or sold How much cash a company has only

21. What is long-term investing?

Holding investments for years with a focus on growth over time Buying and selling every minute Only trading after market close Avoiding all risk

22. What is a defensive stock?

A stock that has no customers A stock from a company less affected by economic downturns A stock that never trades A stock that only goes up

23. What is market capitalization?

A broker password A company’s office rent A dividend payment Share price multiplied by shares outstanding

24. What does it mean to own shares of a company?

You own the entire company You own a small part of that company You owe the company money You become the CEO automatically

25. What is a brokerage account?

A crypto mining account An account used to buy and sell investments A checking account only A company payroll account