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 volatility? A guaranteed dividend A market holiday A company’s tax rate The degree of price movement in an investment 2. What does buy and hold mean? Buying and selling every second Buying investments and keeping them for the long term Only buying losing stocks Selling everything daily 3. What is technical analysis? Studying price charts and market behavior Reading only earnings reports Studying tax law Checking bank statements 4. What is a stop-loss order? A guaranteed profit order A dividend reinvestment plan An order designed to limit losses if price moves against the investor A company loan 5. What is market capitalization? A broker password A company’s office rent A dividend payment Share price multiplied by shares outstanding 6. What is revenue? Total sales before expenses A stock dividend A broker fee Profit after all expenses only 7. What is the S&P 500? A crypto exchange A bank account A single stock An index of about 500 large U.S. companies 8. What is a dividend? A stock exchange fee A company loan A payment some companies make to shareholders A broker password 9. What is an index fund? A company’s payroll list A stock certificate A tax penalty A fund designed to track a market index 10. What is the stock market? A physical bank vault A marketplace where shares are bought and sold A tax office A crypto mining system 11. What is an ETF? A bank savings account A crypto password A fund that holds a basket of assets and trades like a stock A single private company 12. What is the secondary market? Where investors trade shares with each other after issuance Where taxes are filed Where companies sell shares for the first time only Where loans are approved 13. What is the P/E ratio? Premium earnings report Profit-exchange ratio Public equity return Price-to-earnings ratio 14. What is price appreciation? When a company changes its logo When a stock increases in value When the market closes When a stock pays a loan 15. What is a market order? A company report A dividend request An order to buy or sell immediately at the best available price An order that only executes at one exact price 16. What is a brokerage account? A company payroll account A crypto mining account A checking account only An account used to buy and sell investments 17. What is compounding? Earning returns on previous returns over time A broker fee Losing money automatically A market closure 18. What is the Nasdaq Composite known for? Many technology and growth-oriented companies Only banks Only oil companies Only government bonds 19. What is ask price? The highest price a buyer will pay A broker password The lowest price a seller is willing to accept A dividend date 20. Why do investors study company earnings? To avoid reading financials To understand profitability and business performance To remove market risk To guarantee profit 21. How can investors make money from stocks? Only through salary payments Only through bank interest Price appreciation and dividends Only through tax refunds 22. Which of these is a major U.S. stock exchange? Western Union Coinbase Wallet NYSE Federal Reserve App 23. What is support in stock trading? A tax deduction A company customer service number A broker fee A price area where buyers may step in 24. What is trading volume? The number of employees in a company The stock’s dividend amount The number of shares traded during a period The company’s debt only 25. What is a stock sector? A bank account type A trading password A category of companies in a similar industry A single stock ticker Submit Test
