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 stock? A government tax form A share of ownership in a company A crypto wallet A bank loan 2. What is the main risk of investing in a single stock? The company may perform poorly and hurt the portfolio It avoids all market risk It guarantees higher returns It removes volatility 3. What is the secondary market? Where companies sell shares for the first time only Where investors trade shares with each other after issuance Where taxes are filed Where loans are approved 4. What is an index fund? A tax penalty A stock certificate A company’s payroll list A fund designed to track a market index 5. How can investors make money from stocks? Only through salary payments Only through bank interest Price appreciation and dividends Only through tax refunds 6. What is the S&P 500? A bank account A crypto exchange An index of about 500 large U.S. companies A single stock 7. What is a blue-chip stock? A stock with no earnings A stock that trades only in crypto A stock owned only by banks A stock from a large, established, financially strong company 8. What is ask price? The lowest price a seller is willing to accept The highest price a buyer will pay A broker password A dividend date 9. What does IPO stand for? Investment Price Order Internal Profit Operation International Payment Option Initial Public Offering 10. What is the stock market? A physical bank vault A tax office A crypto mining system A marketplace where shares are bought and sold 11. Which sector includes software, chips, and artificial intelligence companies? Real Estate Consumer Staples Technology Utilities 12. What is the primary market? Where crypto is mined Where investors only trade used cars Where banks print money Where securities are sold for the first time 13. What is a ticker symbol? A company password A bank routing number A government license A short code used to identify a publicly traded company 14. What is a small-cap stock? A stock owned only by the government A stock that cannot be traded A stock from a smaller company with lower market capitalization A stock with a guaranteed return 15. Which sector includes everyday goods like food and household products? Energy Technology Consumer Staples Real Estate 16. What is long-term investing? Buying and selling every minute Holding investments for years with a focus on growth over time Avoiding all risk Only trading after market close 17. What is a dividend? A stock exchange fee A payment some companies make to shareholders A broker password A company loan 18. What is earnings? A company’s profit after expenses A tax refund A broker fee A company’s stock symbol 19. What is resistance in stock trading? A dividend payment A price area where sellers may step in A tax document A company loan 20. What is dollar-cost averaging? Selling after every dip Investing a fixed amount regularly over time Borrowing money to buy stocks Putting all money in at once only 21. Why is diversification important? It stops market volatility It guarantees profit It removes all risk It reduces dependence on one stock or sector 22. What is diversification? Putting all money in one company Avoiding all investing Spreading investments across different assets to reduce risk Buying only one stock 23. What is the P/E ratio? Profit-exchange ratio Price-to-earnings ratio Public equity return Premium earnings report 24. What is EPS? Earnings per share Estimated payment schedule Equity purchase signal Exchange price system 25. What is technical analysis? Checking bank statements Studying price charts and market behavior Studying tax law Reading only earnings reports Submit Test
