Stock Market Test Stock Market Knowledge Test Instructions: Answer all 25 questions. Each question is worth 4 points. Total score: 100 points. Attempt Limit: You may take this test up to 3 times using the same email address. Student Name Student Email 1. What is a small-cap stock? A stock that cannot be traded A stock owned only by the government A stock from a smaller company with lower market capitalization A stock with a guaranteed return 2. What is trading volume? The stock’s dividend amount The company’s debt only The number of employees in a company The number of shares traded during a period 3. What is resistance in stock trading? A dividend payment A price area where sellers may step in A tax document A company loan 4. What is a growth stock? A stock that cannot lose value A stock from a company expected to grow faster than average A stock with no price movement A stock that always pays high dividends 5. What is a stock? A share of ownership in a company A bank loan A government tax form A crypto wallet 6. What is a stop-loss order? An order designed to limit losses if price moves against the investor A company loan A dividend reinvestment plan A guaranteed profit order 7. What is compounding? Earning returns on previous returns over time A market closure Losing money automatically A broker fee 8. What is liquidity in the stock market? How easily a stock can be bought or sold How many employees a company has How many emails a broker sends How much cash a company has only 9. What is a limit order? A tax filing order An order to buy or sell at a specific price or better A dividend payment An order that guarantees profit 10. What is revenue? A stock dividend Profit after all expenses only A broker fee Total sales before expenses 11. What does buy and hold mean? Buying investments and keeping them for the long term Buying and selling every second Selling everything daily Only buying losing stocks 12. What is the S&P 500? A bank account A crypto exchange An index of about 500 large U.S. companies A single stock 13. What is the main risk of investing in a single stock? It guarantees higher returns It removes volatility The company may perform poorly and hurt the portfolio It avoids all market risk 14. What can move stock prices? Only market holidays Earnings, news, supply and demand, and economic conditions Only company logos Only broker passwords 15. What is the P/E ratio? Profit-exchange ratio Price-to-earnings ratio Premium earnings report Public equity return 16. Which of these is a major U.S. stock exchange? Western Union Coinbase Wallet Federal Reserve App NYSE 17. What is an ETF? A crypto password A single private company A bank savings account A fund that holds a basket of assets and trades like a stock 18. What is the Dow Jones Industrial Average? A stock market index tracking 30 major U.S. companies A crypto project A government tax form A company loan program 19. What does IPO stand for? Investment Price Order Initial Public Offering Internal Profit Operation International Payment Option 20. What is the primary market? Where investors only trade used cars Where banks print money Where crypto is mined Where securities are sold for the first time 21. What is a brokerage account? A checking account only A company payroll account An account used to buy and sell investments A crypto mining account 22. What is dollar-cost averaging? Borrowing money to buy stocks Putting all money in at once only Selling after every dip Investing a fixed amount regularly over time 23. What is market capitalization? Share price multiplied by shares outstanding A company’s office rent A broker password A dividend payment 24. What is diversification? Putting all money in one company Spreading investments across different assets to reduce risk Buying only one stock Avoiding all investing 25. Which of these is another major U.S. stock exchange? PayPal IRS NASDAQ World Bank Submit Test
