Stock Market Test

1. What is price appreciation?

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

2. How can investors make money from stocks?

Price appreciation and dividends Only through bank interest Only through tax refunds Only through salary payments

3. What is dollar-cost averaging?

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

4. Which of these is another major U.S. stock exchange?

World Bank IRS PayPal NASDAQ

5. What is the Nasdaq Composite known for?

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

6. What is resistance in stock trading?

A price area where sellers may step in A tax document A dividend payment A company loan

7. Which sector includes banks, insurance, and investment firms?

Financials Healthcare Energy Industrials

8. 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

9. What is a limit order?

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

10. 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 removes volatility It guarantees higher returns

11. What is the secondary market?

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

12. 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

13. Why do investors study company earnings?

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

14. What is the S&P 500?

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

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

Real Estate Energy Consumer Staples Technology

16. What is a large-cap company?

A company with no employees A company that only sells bonds A company that cannot trade publicly A company with a large market capitalization

17. Do all stocks pay dividends?

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

18. What is a defensive stock?

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

19. What is market capitalization?

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

20. What is compounding?

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

21. What is a bear market?

A period when stock prices generally fall A period of guaranteed profits A dividend increase A market holiday

22. What is trading volume?

The company’s debt only The stock’s dividend amount The number of shares traded during a period The number of employees in a company

23. What is a dividend stock?

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

24. What is a blue-chip stock?

A stock owned only by banks A stock that trades only in crypto A stock with no earnings A stock from a large, established, financially strong company

25. What can move stock prices?

Only market holidays Earnings, news, supply and demand, and economic conditions Only broker passwords Only company logos