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 company loan A stock exchange fee A broker password A payment some companies make to shareholders 2. What is the secondary market? Where loans are approved Where taxes are filed Where companies sell shares for the first time only Where investors trade shares with each other after issuance 3. Which sector includes everyday goods like food and household products? Real Estate Technology Consumer Staples Energy 4. What is liquidity in the stock market? How easily a stock can be bought or sold How much cash a company has only How many employees a company has How many emails a broker sends 5. What is support in stock trading? A broker fee A company customer service number A tax deduction A price area where buyers may step in 6. What is a defensive stock? A stock from a company less affected by economic downturns A stock that only goes up A stock that never trades A stock that has no customers 7. What is a bear market? A dividend increase A period when stock prices generally fall A period of guaranteed profits A market holiday 8. 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 9. Which sector includes banks, insurance, and investment firms? Industrials Healthcare Energy Financials 10. What is the primary market? Where securities are sold for the first time Where crypto is mined Where investors only trade used cars Where banks print money 11. What is a large-cap company? A company with no employees A company with a large market capitalization A company that only sells bonds A company that cannot trade publicly 12. What is diversification? Avoiding all investing Buying only one stock Spreading investments across different assets to reduce risk Putting all money in one company 13. What is the Nasdaq Composite known for? Only banks Only oil companies Only government bonds Many technology and growth-oriented companies 14. How can investors make money from stocks? Only through bank interest Only through salary payments Price appreciation and dividends Only through tax refunds 15. What is the S&P 500? An index of about 500 large U.S. companies A single stock A bank account A crypto exchange 16. Which of these is another major U.S. stock exchange? NASDAQ PayPal World Bank IRS 17. What is resistance in stock trading? A tax document A price area where sellers may step in A dividend payment A company loan 18. What is a growth stock? A stock from a company expected to grow faster than average A stock with no price movement A stock that always pays high dividends A stock that cannot lose value 19. What is the main risk of investing in a single stock? The company may perform poorly and hurt the portfolio It removes volatility It guarantees higher returns It avoids all market risk 20. What is a small-cap stock? A stock that cannot be traded A stock from a smaller company with lower market capitalization A stock with a guaranteed return A stock owned only by the government 21. What is a limit order? An order that guarantees profit An order to buy or sell at a specific price or better A tax filing order A dividend payment 22. What is compounding? A broker fee Earning returns on previous returns over time A market closure Losing money automatically 23. What is the P/E ratio? Price-to-earnings ratio Public equity return Profit-exchange ratio Premium earnings report 24. What is revenue? Profit after all expenses only A broker fee Total sales before expenses A stock dividend 25. What does IPO stand for? Investment Price Order Initial Public Offering Internal Profit Operation International Payment Option Submit Test
