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 stock? A government tax form A share of ownership in a company A bank loan A crypto wallet 2. What is ask price? A broker password The lowest price a seller is willing to accept The highest price a buyer will pay A dividend date 3. What is a large-cap company? A company that cannot trade publicly A company with a large market capitalization A company that only sells bonds A company with no employees 4. Why do companies sell stock? To raise capital for growth, operations, or debt repayment To close the business To avoid having customers To remove investors 5. What is a dividend stock? A stock that pays regular income to shareholders A stock that never pays investors A stock with no company behind it A stock that only trades once a year 6. What is a bear market? A market holiday A dividend increase A period of guaranteed profits A period when stock prices generally fall 7. What is revenue? Profit after all expenses only Total sales before expenses A stock dividend A broker fee 8. What is earnings? A company’s profit after expenses A broker fee A company’s stock symbol A tax refund 9. What is a brokerage account? A crypto mining account A checking account only A company payroll account An account used to buy and sell investments 10. What is trading volume? The number of shares traded during a period The company’s debt only The stock’s dividend amount The number of employees in a company 11. Why is diversification important? It guarantees profit It stops market volatility It reduces dependence on one stock or sector It removes all risk 12. What is a small-cap stock? A stock that cannot be traded A stock owned only by the government A stock with a guaranteed return A stock from a smaller company with lower market capitalization 13. What is a stock sector? A category of companies in a similar industry A single stock ticker A bank account type A trading password 14. What is resistance in stock trading? A dividend payment A tax document A price area where sellers may step in A company loan 15. What is the main risk of investing in a single stock? It avoids all market risk The company may perform poorly and hurt the portfolio It guarantees higher returns It removes volatility 16. What is the Dow Jones Industrial Average? A company loan program A crypto project A government tax form A stock market index tracking 30 major U.S. companies 17. What does it mean to own shares of a company? You own the entire company You become the CEO automatically You own a small part of that company You owe the company money 18. Which of these is another major U.S. stock exchange? World Bank IRS PayPal NASDAQ 19. What is a stop-loss order? A dividend reinvestment plan A guaranteed profit order An order designed to limit losses if price moves against the investor A company loan 20. What is diversification? Buying only one stock Putting all money in one company Avoiding all investing Spreading investments across different assets to reduce risk 21. What is a growth stock? A stock that cannot lose value A stock that always pays high dividends A stock from a company expected to grow faster than average A stock with no price movement 22. What is liquidity in the stock market? How many emails a broker sends How easily a stock can be bought or sold How many employees a company has How much cash a company has only 23. Why should investors avoid emotional decisions? Emotions can lead to panic selling or chasing hype Emotions replace research Emotions remove risk Emotions guarantee better returns 24. 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 25. What is bid price? A company dividend A tax amount The lowest price a seller will accept The highest price a buyer is willing to pay Submit Test
