Understanding the Stock Market Quiz

1 point(s)

What do stocks represent in a publicly-traded company?

A portion of debt in a company

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A promise of future profits

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A portion of ownership in a company

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A pledge to purchase future goods

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1 point(s)

Which of the following is NOT a reason people invest in stocks?

Capital appreciation

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Dividends

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Diversification

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Guaranteed returns

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1 point(s)

Retail investors typically have less access to information, research, and tools compared to institutional investors.

True

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False

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1 point(s)

A bull market refers to a market in which prices are falling, encouraging selling.

True

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False

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1 point(s)

Dividends are a form of profit distribution from a company to its shareholders.

True

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False

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1 point(s)

Arrange these types of financial instruments in ascending order of potential risk, starting with the lowest: Bonds, Cryptocurrencies, Stocks, Treasury Bills.

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1 point(s)

Sort these investment strategies in the order of least to most active: Value Investing, Day Trading, Buy and Hold, Swing Trading.

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3 point(s)

Match the Term with its Definition.

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Initial public offering, a company's first sale of stock to the public
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders
The increase in value of an asset or investment above its purchase price

IPO	Correct Incorrect Correct answer

Dividend

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Capital Gain

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1 point(s)

What is one concept you found most interesting in this chapter and why?

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

Understanding the Stock Market Quiz

Understanding the Stock Market Quiz

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