Stock Market : Questions and Answer Key

Stock Market : Questions and Answer Key

60 Questions
NAME :
DATE :

1. Why would a company need to issue stock?
A To raise money. B To stop the government from regulating it.
C To show customers that it’s successful. D To increase its’ customer base.

2. You can buy stock in any company in the world.
A True, all companies are required to offer stock.
B False, a company is only listed on the stock exchange if it wants to be.

3. What is the stock market?
A A type of bank that gives out loans to new businesses.
B A type of farmers market where people buy and sell food.
C A place where parts of businesses are bought and sold.
D A special type of grocery store that sells stocks.

4. A time when stock prices are falling
A transaction B bull market
C bear market

5. A legally established company
A corporation B capitalism
C colony

6. Money needed to start a business is called
A Clams B Profit
C Capital D Loan

7. Apple is releasing a new iPhone that is predicted to change the cell phone world. Millions of people have pre-ordered it. What do you think will happen to their stock?
A It is likely to go up. B It is likely to go down.

8. A time when stock prices are RISING is called
A bear market B transaction
C bull market

9. The highest price the stock has traded over the past year is called
A Market Cap
Market Cap
B Beta
C 52 Week High D Day High

10. You have $250 that you are willing to invest in Apple’s stock. If Apple’s stock is selling for $113.05 a share, how many shares could you buy?
A 1 B 2
C 3 D 4

11.
A measure of volatility in stock prices of a particular company.
A P/E ratio B earnings per share
C volume D beta

12. As long as you are 18 years old and have some money, you can invest it in the stock market.
A False B True

13. What types of stocks have dividends?
A preferred stock B chicken stock
C common stock D premium stock

14.
A company’s closing price divided by its latest annual earnings per share.
A beta B market capitalization
C volume D P/E ratio

15.
A particular market where stocks and bonds are traded.
A portfolio B shareholder
C stock market D market capitalization

16. The price a stockbroker charges to take care of buying and selling stocks
A profit B dividend
C commission

17. to buy a variety of stocks
A risk B diversify
C portfolio D profit

18.
A company’s profit or earnings divided equally among all the shares investors own.
A earnings per share B market capitalization
C industry D volume

19.
The financial benefit when the revenue of a company exceeds expenses, costs, and taxes.
A profit B portfolio
C loss D volume
20. Over the course of the day, the head of Apple’s company is imprisoned for not paying his taxes. What do you think will happen to Apple’s stock?
A It will go down. B It will go up.

21. A person who is licensed to buy and sell stock
A stockbroker B shareholder
C investor

22. Apple stock plummets and now you have to decide if you hold onto your stock in the hopes that it goes back up, or sell it at a loss. Apple stock is now selling or $54.76 a share. You have 2 shares. When you first bought them their total value was $226.10. What is their total value now?
A 557.22 B 22.10
C 5.05 D 109.52

23. One way stockholders make money is by selling their stock for more money than they paid for it.
A TRUE B FALSE

24.
The highest price and lowest price of a stock over a 52 week period.
A 52 week range B profit
C beta D volume

25.
How much did IBM’s stock vary that day?
A $8.00 B $165.05
C $3.20 D $5.70

26.
You decide that you want to invest a little bit of money in Apple stock. But in order to do that you need to figure out their stock symbol. What is the symbol that Apple uses on the stock market? Use the image to help you figure it out.
A IPHONE B STEVEJOBS
C AAPL D APPLE

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

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

29. What type of stock would have voting rights?
A preferred stock B chicken stock
C common stock D stock stock

30.
A holder or owner of stock in a company or corporation.
A portfolio B shareholder
C industry D stock market

31.
A sum of money paid to shareholders of a corporation out of its earnings.
A invest B index
C profit D dividend

32. Stocks represent ownership in a corporation.
A TRUE B FALSE

33.
A company that sells stock on the stock market.
A public company B market capitalization
C private company D stock market

34.
How much did yahoo vary during the year?
A $4.51 B $7.68
C $3.17 D $76.80

35. 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 much debt the country is in.
B It provides a snapshot of how the stock market and the US economy is doing.
C It helps economists predict when a stock market crash will happen.
D It tells Americans how many jobs are out there.

36.
To put money to use by purchasing something offering potential profitable returns as interest, income, or appreciation in value.
A invest B stock
C index D portfolio

37.
Groups of companies that are related based on their primary products or services.
A public company B industry
C index D stock

38. an exchange of goods, services, or money
A transaction B diversify
C profit

39.
The total current market value of all outstanding shares of a company.
A beta B dividend
C market capitalization D volume

40.
What was the lowest dollar amount Yahoo was traded for that day?
A $5.43 B $4352.00
C $7.27 D $6.08

41.
How much profit did Nike make that day per share?
A $84.50 B $84.00
C $0.75 D $.0075

42.
When assets or stocks are sold for a price lower than the original purchase price.
A volume B profit
C risk D loss

43. someone who lends or gives money in hopes of making a profit
A investor B stockbrocker
C portfolio D shareholder

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

45.
The total holdings of stock by a financial institution or a private investor.
A industry B portfolio
C index D stock market

46.
What was the closing price for Google that day?
A $96.66 B $5.43
C $96.67 D $6.08

47. Does a bear market mean the stock market is rising or going down?
A going down B staying the same
C cross dimensional static drift D rising

48. The price of stock at the end of the previous trading session
A Day High B Day Low
C Percent Change D Previous Close

49.
Approximately how much money was one share of Apple selling for last night? Use the image to help you.
A 213.05 B 113.05
C 13.05 D 33.05

50. The name for a part of a business that is bought and sold on the stock market is:
A Share B Marker
C Stocker D Part

51.
A group of large companies that stockbrokers look at to gauge how the market is doing as a whole.
A portfolio B shareholder
C industry D index

52. What is it called when you loss money on stocks you have purchased.
A corporate loss B capital of NY
C capital gain D capital loss

53. A system in which individuals are free to own, trade, and use things in order to make a profit
A capitalism B stock exchange
C bull market D bear market

54.
If I owned 100 shares or Goodyear, how much would I receive in dividends?
A 400.00 B .40
C 40.00 D 40.00

55. What are these? NYSE – NASDAQ
A securities and exchanges B markets
C stock exhanges D stocks

56.
How much would you buy shares of IBM for on that day?
A $155.00 B $8.00
C $160.70 D $158.20

57. Pepsi, Google, Coach, and Nike. What do these companies have in common?
A They are all companies with such expensive stock that you won’t be able to afford to invest in them in our stock market game.
B They are examples of failing companies that you wouldn’t want to invest in.
C You can buy stock in them in our stock market game.
D They are all companies that have declined to be on the stock market, you can’t buy stock in them.

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

59. The possibility of losing some or all of a particiular investment.
A industry B index
C profit D risk

60.
The total number of shares traded in a given day.
A profit B volume
C loss D beta

*Sorry for the low quality of images 🙂

Answer Key

1. a 2. b 3. c 4. c
5. a 6. c 7. a 8. c
9. c 10. b 11. d 12. b
13. a 14. d 15. c 16. c
17. b 18. a 19. a 20. a
21. a 22. d 23. a 24. a
25. d 26. c 27. b 28. a
29. c 30. b 31. d 32. a
33. a 34. a 35. b 36. a
37. b 38. a 39. c 40. a
41. c 42. d 43. a 44. d
45. b 46. a 47. a 48. d
49. b 50. a 51. d 52. d
53. a 54. c 55. c 56. d
57. c 58. c 59. d 60. b

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