How Does the Stock Market Work? Quiz

1 point(s)

What are the primary benefits of being listed on a stock exchange?

Increased visibility and access to capital

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Reduced trading risk

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Lower filing costs for public companies

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Limited investor base

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1 point(s)

Which type of market involves trading stocks not listed on formal exchanges and can be riskier due to fewer regulations?

Stock Exchange Market

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Over-the-Counter (OTC) Market

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Bond Market

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Commodity Market

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1 point(s)

When you buy a share of a company, you become a fractional owner and may have voting rights in corporate decisions.

True

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False

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1 point(s)

Capital appreciation occurs when a company distributes a portion of its earnings to shareholders.

True

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False

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1 point(s)

Sort these reasons for an increase in demand for a company’s stock from least likely to most likely.

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2 point(s)

Match the type of market with its characteristics.

Sort elements

Formal exchange listing with requirements
Decentralized trading, riskier, fewer regulations

Stock Exchange Market

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Over-the-Counter (OTC) Market

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1 point(s)

How can understanding the relationship between supply and demand for stocks help you as an investor?

This response will be awarded full points automatically, but it will be reviewed and possibly adjusted after submission.

How Does the Stock Market Work? Quiz