STOCK MARKET PART 5

Part 2

20 Questions
NAME :
DATE :

1. What is a stock broker?
A A machine that keeps track of the prices of stocks B Anyone who owns stock
C Someone who loses all of his/her money after making bad investments
D Someone who is licensed to buy and sell stock on a stock exchange

2. What is the primary reason for a company to issue stock?
A To raise money to grow the company B To increase greater awareness of the company
C To distribute the risk of bankruptcy across more investors
D The stocks help investors earn a higher rate of return

3. It is free to buy stocks
A False B True

4. A strong market when prices are going up.
A Diversification B Bull Market
C Bear Market D Equities

5. A company owned by families or a small number of investors and do not issue stock to the public.
A industry B portfolio
C public company D private company

6. Common stock ownership gives investors
A guaranteed dividends B voting rights in shareholder meetings
C lower risk with a higher rate of return

7. Ownership in a corporation; represents a claim on part of the corporation’s assets and earnings.
A stocks B Mutual funds
C bonds

8. What is it called when the stock market rises for a period of time?
A stock market B growth market
C bear market D bull market

9. The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important?
A It tells Americans how many jobs are out there. B It tells Americans how much debt the country is in.
C It provides a snapshot of how the stock market and the US economy is doing.
D It helps economists predict when a stock market crash will happen.

10. A group of thirty stocks that measure the performance of the stock market and mainly focuses on one market.
A Dow Jones Industrial Average B Standard and Poors 500
C National Association of Securities Dealers Automated Quotation
D New York Stock Exchange

11.
A sum of money paid to shareholders of a corporation out of its earnings.
A dividend B index
C profit D invest

12. People who own stocks are guaranteed a return on the money they have invested in stocks.
A FALSE B TRUE

13. Who regulates stock market exchanges?
A Christian Garcia B New York stock exchange
C securities and exchange commission D congress

14. The two major stock exchanges are
A NYSE & American B NASDAQ & DJIA
C Dow Jones Industrial Average & S&P 500 D NASDAQ & NYSE

15.
The total holdings of stock by a financial institution or a private investor.
A stock market B industry
C portfolio D index

16. Which type of shareholder gets dividends first?
A Common stock B Treasury stock
C Preferred stock

17. You loan money to a corporation or government, and they pay you back with interest
A Stock B Mutual Funds
C Bonds

18. People who own stocks are guaranteed a return on the money they have invested in stocks.
A FALSE B TRUE

19. A poor market when prices are going down.
A Diversification B Bull Market
C Equities D Bear Market

20.
A company that sells stock on the stock market.
A private company B stock market
C market capitalization D public company

Answer Key
1. d 2. a 3. a 4. b
5. d 6. b 7. a 8. d
9. c 10. a 11. a 12. a
13. c 14. d 15. c 16. c
17. c 18. a 19. d 20. d

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