What is a share of stock?

a portion of ownership in a company

Which is mostly true about growth stocks?

they soar in value when times are good, but can tank

"Large Cap" companies (companies with large market capitalization) are considered:

established and stable, with low growth potential

Which is the primary reason that most companies issue stock?

To raise money for continued company growth

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Stock Market Basics

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This quiz is designed to test students' prior knowledge of some basic stock market facts.

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Questions 10

Answers

1
What is a share of stock?
an exchange where stocks are traded
money paid to investors based on company performance
a person who buys and sells stocks
a portion of ownership in a company
2
What does market capitalization mean?
none of the above
what a company is worth
a stock market crash
the maximum price of a stock
3
Which is mostly true about growth stocks?
they soar in value when times are good, but can tank
they are the most expensive to buy
they maintain consistent value despite market fluctations
all tech stocks are growth stocks
4
"Large Cap" companies (companies with large market capitalization) are considered:
established and stable, with low growth potential
new, large companies with high growth potential
established yet unstable, with high growth potential
new, small companies with high growth potential
5
The historical market average for a return on an investment in a stock is...
10%
2%
60%
200%
6
What is the primary factor that determines the price of a stock in the long term?
company management
company earnings
fear and rumors
competitive stock prices
7
Which is the primary reason that most companies issue stock?
To raise money for continued company growth
To generate publicity for the company
Because they can't find enough private investors
To allow others to share in their success
8
A well-balanced portfolio typically includes10-15 stocks in 7 or more industries.
True
Too few stocks
Too many stocks
9
The P/E ratio, one calculation used to value stocks, stands for:
price over estimates
performance over estimates
performance over earnings
price over earnings
10
An individual stock's price can rise, even when the market falls.
False
True

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