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 dividend? A broker password A payment some companies make to shareholders A stock exchange fee A company loan 2. What is the stock market? A tax office A physical bank vault A marketplace where shares are bought and sold A crypto mining system 3. Why do investors study company earnings? To understand profitability and business performance To remove market risk To guarantee profit To avoid reading financials 4. What is dollar-cost averaging? Investing a fixed amount regularly over time Borrowing money to buy stocks Putting all money in at once only Selling after every dip 5. What is a brokerage account? An account used to buy and sell investments A company payroll account A checking account only A crypto mining account 6. What is a market order? An order that only executes at one exact price A company report A dividend request An order to buy or sell immediately at the best available price 7. Which of these is another major U.S. stock exchange? PayPal World Bank IRS NASDAQ 8. What is a bear market? A dividend increase A market holiday A period when stock prices generally fall A period of guaranteed profits 9. What is support in stock trading? A tax deduction A broker fee A company customer service number A price area where buyers may step in 10. Why should investors avoid emotional decisions? Emotions replace research Emotions guarantee better returns Emotions remove risk Emotions can lead to panic selling or chasing hype 11. What is an ETF? A crypto password A bank savings account A fund that holds a basket of assets and trades like a stock A single private company 12. What does buy and hold mean? Buying investments and keeping them for the long term Only buying losing stocks Buying and selling every second Selling everything daily 13. Which sector includes everyday goods like food and household products? Energy Consumer Staples Technology Real Estate 14. What is the primary market? Where investors only trade used cars Where crypto is mined Where securities are sold for the first time Where banks print money 15. What does it mean to own shares of a company? You become the CEO automatically You own the entire company You owe the company money You own a small part of that company 16. What is the Nasdaq Composite known for? Many technology and growth-oriented companies Only banks Only oil companies Only government bonds 17. What is the bid-ask spread? A company’s revenue The difference between stocks and bonds only A tax rule The difference between the bid and ask price 18. What is the main risk of investing in a single stock? It avoids all market risk It removes volatility The company may perform poorly and hurt the portfolio It guarantees higher returns 19. What is trading volume? The number of shares traded during a period The number of employees in a company The company’s debt only The stock’s dividend amount 20. What is an index fund? A fund designed to track a market index A stock certificate A tax penalty A company’s payroll list 21. Which sector includes banks, insurance, and investment firms? Energy Healthcare Financials Industrials 22. What is a growth stock? A stock from a company expected to grow faster than average A stock that cannot lose value A stock that always pays high dividends A stock with no price movement 23. Which of these is a major U.S. stock exchange? Western Union NYSE Federal Reserve App Coinbase Wallet 24. 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 25. Why is diversification important? It guarantees profit It removes all risk It stops market volatility It reduces dependence on one stock or sector Submit Test
