Stock Market Test

1. Why do investors study company earnings?

To avoid reading financials To guarantee profit To understand profitability and business performance To remove market risk

2. What is ask price?

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

3. What is a bull market?

A period when stock prices generally rise A period when prices never move A period when the market is closed A period when companies stop reporting earnings

4. What is price appreciation?

When a stock increases in value When the market closes When a company changes its logo When a stock pays a loan

5. What is the Nasdaq Composite known for?

Many technology and growth-oriented companies Only government bonds Only banks Only oil companies

6. What is a stop-loss order?

A company loan A dividend reinvestment plan An order designed to limit losses if price moves against the investor A guaranteed profit order

7. Why should investors avoid emotional decisions?

Emotions guarantee better returns Emotions remove risk Emotions replace research Emotions can lead to panic selling or chasing hype

8. What is dollar-cost averaging?

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

9. What is a limit order?

A tax filing order An order to buy or sell at a specific price or better An order that guarantees profit A dividend payment

10. What does buy and hold mean?

Selling everything daily Only buying losing stocks Buying and selling every second Buying investments and keeping them for the long term

11. What is bid price?

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

12. Why do companies sell stock?

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

13. What is a stock?

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

14. What is the stock market?

A tax office A physical bank vault A crypto mining system A marketplace where shares are bought and sold

15. What is compounding?

Losing money automatically A broker fee Earning returns on previous returns over time A market closure

16. Which sector includes software, chips, and artificial intelligence companies?

Consumer Staples Real Estate Utilities Technology

17. What is a dividend?

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

18. What does IPO stand for?

Initial Public Offering International Payment Option Investment Price Order Internal Profit Operation

19. What is volatility?

A company’s tax rate A market holiday A guaranteed dividend The degree of price movement in an investment

20. What is a ticker symbol?

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

21. What is the Dow Jones Industrial Average?

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

22. What is long-term investing?

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

23. What is support in stock trading?

A company customer service number A tax deduction A price area where buyers may step in A broker fee

24. What is the S&P 500?

An index of about 500 large U.S. companies A bank account A single stock A crypto exchange

25. What is liquidity in the stock market?

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