Abby C's Stock Market Quiz

  1. Developed by: Abby Ceravolo [STUDENT]

Hi Guys! Here's the quiz for sections/articles 1-7!

Question 1: What is net profit?
Only the money you earn
All the money you make + your expenses
Total income - expenses

Question 2: What is the definition of asset value/book value?
The value of all the business' assets if you sold them right now - today
The value of a company compared to the assets of other similar companies
How much money a company brings in (profit) each year

Question 3: What is a share/stock?
A lovely piece of pie
Essentially a portion of ownership
A piece of all the companies of a certain type

Question 4: Dividend is:
A share's portion of the company's profits
The money that a bank loans to a company
The money company invests in the stock market

Question 5: The definition of capitalization is...?
The time it takes for a company to become a part of the capital economy
The product of the number of outstanding shares multiplied by the share price
The process in which a state controlled economy changes to a capital economy

Question 6: What exactly is a stock market?
A place where stock are publicly bought and sold
The place where companies meet to discuss how they believe their stocks are doing
A place where people decide to share the profit they earn from a company

Question 7: What does a stock broker do?
A stock broker is someone who sells stocks in their own company
A stock broker is simply any person who likes to buy and sell stocks
A stock broker is someone who sells and buys stocks on your behalf

Question 8: What is incorporating?
A company being nice and listening to what everyone has to say
Incorporating means the process of turning into a corporation
Incorporating means selling corporations a company may own

Question 9: What is a sole proprietorship?
When two people own the company equally, but only one makes the company's decisions
When one person owns the majority of shares, but others own a part of the shares
When only one person owns all of a company

Question 10: What is a partnership?
When one person alone owns the company, but they employ a board of directors
When a company is owned by the government but has decisions made by a non-government civilian
When more than one person owns shares in a company

Question 11: A corporation is known as a what kind of person?
A large and powerful person
A virtual person
A very wealthy person

Question 12: What is a privately held company?
A company that only certain people are allowed to buy products from
A company where the shares are owned by a small number of people
A company that is very secretive

Question 13: The definition of investment capital is...?
Money - a special kind of secret money
Money that is made from the company and re-invested
Money from investors

Question 14: What is an IPO?
An initial public offering - when a corporation first sells stock to the public
An initial public opening - when a company first allows the public to buy products
An investment public option - when the public is informed who has invested in a company

Question 15: What is liability? And what do corporations do to it?
Liability is products - a corporations produces liability
Liability is risk - corporations limit investors liability
Liability is private information from the corporation - corporations release it to the public

Question 16: What is an income stock?
a stock from a company that gives the majority of its profits back to the shareholders
A stock that can only ever increase in value
A stock whose income must be re-invested in the same stock

Question 17: What is a growth stock?
A stock that makes you grow big.:)
A stock who increases your monthly income by giving you a dividend
A stock from a company who puts most of their money back into the business

Question 18: What is a price/earnings ratio? And what is it used for?
Price earnings ratio is the ratio of the price of the company versus how much the company makes overall - used to determine value
Price earnings ratio is the price of the stock divided by the earnings per share - used to determine value
Price earnings ratio is the ratio of the price of your employer divided by how much money you make annually - used to determine personal value

Question 19: What is a bull market?
A market that is decreasing rapidly
A market that has a bull inside of it...?
A market when the economy is doing well and the prices of stock tend to rise

Question 20: What is a bear market?
When the economy is not doing overly well or poorly - prices of stocks tend to be stagnant
when the economy is strong and prices are growing
When the economy is doing poorly - prices of stocks tend to fall

Question 21: What is the Dow Jones Industrial Average?
An average of all the industrial companies in the stock market at the time
An average of 30 large industrial companies
An average of the top 5 industrial companies

Question 22: What is the name of one the main stock markets in the US?
DCSE
NASDIQ
NYSE

Question 23: What is an over the counter stock?
A stock from a pharmaceutical company
A stock that you can purchase in a normal convenience store
A stock that is not sold in a stock market?

Question 24: What is the name of the group who oversees the collecting and distributing of information for publicly held corporations in the United States?
The Corporate Enlightenment Division
The Securities and Exchange Commission
The State Department for Economic education

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The quiz is developed on: 2008-10-01

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