In stock-market investing, what are shares repurchased by the issuing company called?
Answer
Treasury stock
80 Stock Market Basics Trivia Questions with Answers
80 public questions with answers, drawn from the well. How many can you answer?
How is the S&P 500 generally weighted among its constituent companies?
Answer
By market capitalization
Which financial statement reports a public company’s revenues and expenses for a period?
Answer
Income statement
For a U.S. stock trade, what does T+1 settlement mean?
Answer
Settlement one business day after trade
In stock-market terminology, what does a bear market generally describe?
Answer
A prolonged market decline
What does a stock’s price-to-book ratio compare with its book value per share?
Answer
Market price per share
Which U.S. stock exchange is commonly identified by the abbreviation NYSE?
Answer
New York Stock Exchange
What is a stock’s beta intended to measure relative to the overall market?
Answer
Systematic risk
On the New York Stock Exchange, what was signed in 1792 to establish rules for securities trading?
Answer
Buttonwood Agreement
What does the price-to-earnings ratio compare for a publicly traded company?
Answer
Share price to earnings per share
Which stock-market index is weighted by the share prices of 30 U.S. companies?
Answer
Dow Jones Industrial Average
In stock-market terminology, what is an ex-dividend date?
Answer
The first trading date without dividend rights
In stock-market investing, what does a stock split increase while leaving total value unchanged at the split?
Answer
The number of shares
In stock-market investing, what is an initial public offering?
Answer
A company’s first public share sale
In stock-market trading, what does the bid-ask spread measure?
Answer
The difference between bid and ask prices
What does a reverse stock split do to a company’s existing shares?
Answer
Combines shares into fewer shares
In stock-market investing, what is an American depositary receipt designed to represent?
Answer
A foreign company’s shares
In stock-market investing, what does a rights issue give existing shareholders?
Answer
The right to buy new shares
In stock-market terminology, what is an order book?
Answer
Record of buy and sell orders
In stock-market investing, what is a company’s market capitalization calculated by multiplying?
Answer
Share price by shares outstanding
In stock-market terminology, what does a stock's par value represent?
Answer
Nominal value assigned to a share
In stock-market investing, what is a margin account designed to let an investor do?
Answer
Borrow money to buy securities
In stock-market trading, what does a market maker do?
Answer
Provides liquidity
In stock-market trading, what is a brokerage account used to hold?
Answer
Investments and cash
On what date did the stock-market crash known as Black Monday occur?
Answer
October 19, 1987
In stock-market investing, what does the Nikkei 225 index track?
Answer
225 companies listed in Japan
In stock-market analysis, how is a stock’s dividend yield calculated?
Answer
Annual dividend ÷ share price
In stock-market investing, what is dollar-cost averaging?
Answer
Investing fixed amounts regularly
In stock-market trading, what does a stop-loss order generally do?
Answer
Limits potential losses
In stock-market history, which company issued the first publicly traded shares?
Answer
Dutch East India Company
In stock-market finance, what is a prospectus?
Answer
Document describing a securities offering
In stock-market analysis, what does a stock's closing price represent?
Answer
Last traded price of the session
In stock markets, what is the secondary market?
Answer
Market for existing securities
In stock-market reporting, what does trading volume measure?
Answer
Number of shares traded
What is the trading of shares outside a formal stock exchange called?
Answer
Over-the-counter trading
What is the Nasdaq, founded in 1971, best known as?
Answer
An electronic stock exchange
What is the gain from selling a stock for more than its purchase price called?
Answer
Capital gain
In stock-market analysis, what does earnings per share measure?
Answer
Profit per outstanding share