Question 1

What is the stock market?

Accepted Answer

A marketplace where stocks are traded

Answer

A place where companies go to borrow money

Answer

A marketplace where only bonds are traded

Answer

A shopping mall where people buy stocks

Question 2

What is a stock?

Accepted Answer

A share in the ownership of a company

Answer

A type of currency used only in the stock market

Answer

A physical document representing a company's value

Answer

A loan to a company with fixed interest

Question 3

What is diversification?

Accepted Answer

Spreading your investments across different types of assets

Answer

Investing all your money in one asset class

Answer

Putting all your money in a savings account

Answer

Investing all your money in one stock

Question 4

What is a mutual fund?

Accepted Answer

A professionally managed investment portfolio that pools money from many investors

Answer

A loan to a bank that is repaid with interest

Answer

An investment in a single company's stock

Answer

A type of government bond

Question 5

What is an ETF?

Accepted Answer

An exchange-traded fund that tracks a specific index or sector

Answer

A specific company's mutual fund

Answer

A type of government bond

Answer

An individual stock

Question 6

What is a bond?

Accepted Answer

A loan to a company or government with fixed interest payments

Answer

A physical document representing a company's value

Answer

A type of stock with guaranteed returns

Answer

A savings account

Question 7

What is compound interest?

Accepted Answer

Interest earned on both the principal and the accumulated interest

Answer

Interest earned only after a certain period of time

Answer

Interest not earned until the investment is sold

Answer

Interest only earned on the principal

Question 8

What is a 401(k)?

Accepted Answer

A retirement savings plan typically sponsored by an employer

Answer

A credit card

Answer

A savings account with guaranteed returns

Answer

An individual retirement account

Question 9

What is dollar-cost averaging?

Accepted Answer

Investing a fixed amount of money at regular intervals to reduce the impact of market fluctuations

Answer

Investing only when the market is down

Answer

Investing only when the market is up

Answer

Investing all your money at once

Question 10

What is a bear market?

Accepted Answer

A market in which prices are falling

Answer

A market in which prices are rising

Answer

A market in which prices are stable

Answer

A market in which only bonds are traded

Question 11

What is a stock index?

Accepted Answer

A measurement of the value of a section of the stock market

Answer

A stock market analyst

Answer

A stock market regulator

Answer

A stock trading platform

Question 12

What is a stock exchange?

Accepted Answer

A marketplace where stocks are bought and sold

Answer

A bank that invests in stocks

Answer

A company that issues stocks

Answer

A government agency that regulates stocks

Question 13

What is a stock portfolio?

Accepted Answer

A collection of various stocks owned by an investor

Answer

A report on a company's stock performance

Answer

A list of stocks that a company plans to issue

Answer

A measure of the value of a company's stocks

Question 14

What is a dividend?

Accepted Answer

A payment made by a company to its shareholders

Answer

A penalty for selling stocks too quickly

Answer

A fee charged by a stock broker

Answer

A tax on stock investments

Question 15

What is a bull market?

Accepted Answer

A period of rising stock prices

Answer

A period of declining stock prices

Answer

A period of low stock volatility

Answer

A period of stable stock prices

Question 16

What is insider trading?

Accepted Answer

Using non-public information to buy or sell stocks

Answer

Investing in stocks overseas

Answer

Buying stocks using a margin account

Answer

Investing in stocks using borrowed money

Question 17

What is a stock split?

Accepted Answer

When a company increases the number of its outstanding shares by issuing more shares to its current shareholders

Answer

When a company pays a dividend to its shareholders

Answer

When a company reduces the number of its outstanding shares by buying back shares from its shareholders

Answer

When a company merges with another company

Question 18

What is a P/E ratio?

Accepted Answer

A measure of a company's stock price relative to its earnings

Answer

A measure of a company's market capitalization

Answer

A measure of a company's dividend yield

Answer

A measure of a company's debt relative to its equity

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