FREE FINANCE AND STUDY GAMES ABOUT STOCK

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FREE FINANCE AND STUDY GAMES ABOUT STOCK

MARKET TERMS EXAM QUESTIONS

Qs and Ans Expert- Explanation

This Exam contains:

-Guarantee passing score -29 Questions and Answers -format set of multiple-choice -Expert- Explanation

Question 1: Dividends

Answer:

Distributions of earnings paid to stockholders.

Question 2: Standard and Poor's 500 Index

Answer:

Tracks the stock market activity for 500 stocks.

Question 3: Low Selling Price

Answer:

Lowest selling price of one share of stock from the previous day.

Question 4: Dow Jones Industrial

Answer:

Oldest indicator of the ups and downs of the stock market. Lists the 30 leading industrial blue chip stocks.

Question 5: Broker

Answer:

A person who is licensed to buy and sell stocks and provides investment advice and collects a commission on each purchase or sale.

Question 6: Preferred Stock

Answer:

Shares which pay fixed dividends and have precedence over common stock.

Question 7: Rate of Return

Answer:

The increase or decrease in the original purchase price of an investment.

Question 8: Book Value

Answer:

Net worth of a company.

Question 9: Market Price

Answer:

The amount a willing buyer will pay a willing seller for a stock.

Question 10: Regional Stock Exchange

Answer:

Stocks traded to investors who are living in a specific geographical area.

Question 11: Portfolio Diversification

Answer:

An individual who has a variety of investments tools to decrease risk.

Question 12: Bear Market

Answer:

The market is doing poorly and investors are not confident in the economy. Investors are not purchasing stocks and are selling what is owned.

Question 13: Price/earning Ratio

Answer:

Relationship between the price of one share of stock and the annual earnings of the company.

Question 14: Blue Chip Stock

Answer:

Stock from nationally recognized companies which dominate the industry often having annual revenue of $1 billion or more.

Question 15: Close

Answer:

The price of the last share sold for the day.

Question 16: High Selling Price

Answer:

Highest selling price of one share of stock from the previous day.

Question 17: Dividends per Share

Answer:

Total cash paid to common stockholders per share.

Question 18: Common Stock

Answer:

Shares or units of ownership in a public corporation. The shareholder has voting rights in the corporation.

Question 19: Stock Certificate

Answer:

The piece of paper a shareholder receives representing their ownership of a stock.

Question 20: Stock

Answer:

A share of ownership in the assets and earnings of a business.

Question 21: New York Stock Exchange

Answer:

The oldest and largest exchange with the strictest company standards.

Question 22: Bull Market

Answer:

The market is doing well and investors are optimistic about the economy and purchasing stocks.

Question 23: American Stock Exchange

Answer:

The second largest exchange with less stringent requirements allowing for younger smaller companies to be listed.

Question 24: NASDAQ

Answer:

Monitors fast moving technology and financial services stocks. Usually the companies are smaller and transactions occur over an electronic market.

Question 25: Stock Split

Answer:

Shares owned by existing stockholders are divided into a larger number of shares.

Question 26: Stock Market

Answer:

A general term used to describe all transactions involving the buying and selling of stock shares issued by a company.

Question 27: Earnings Per Share

Answer:

How much income a company has available to pay in dividends and reinvest as retained earnings on a per share basis.

Question 28: Stock Ticker Symbol

Answer:

A stock's abbreviated trading symbol name.