In stock-market history, which company issued the first publicly traded shares?
Answer
Dutch East India Company
40 Stock Market Basics Trivia Questions with Answers
40 public questions with answers, drawn from the well. How many can you answer?
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
What does an exchange-traded fund, or ETF, trade like during the day?
Answer
An individual stock
Which U.S. market index tracks approximately 2,000 small-cap companies?
Answer
Russell 2000
What is the main purpose of a stock exchange in financial markets?
Answer
To facilitate trading of securities
In stock-market terminology, what is a company’s free float?
Answer
Shares available for public trading
In stock-market trading, what is a circuit breaker designed to do?
Answer
Temporarily halt trading
What does the Dow Jones Industrial Average primarily track in the U.S. stock market?
Answer
30 large U.S. companies
In stock-market terminology, what is a blue-chip stock?
Answer
A stock of an established company
Which U.S. agency is the primary federal regulator of securities markets?
Answer
Securities and Exchange Commission
In stock-market investing, what does short selling involve?
Answer
Selling borrowed shares
In the stock market, what is a limit order designed to specify?
Answer
A maximum or minimum trade price
What is the fee charged by a broker for executing a stock trade called?
Answer
Commission
What does the ticker symbol AAPL identify in the U.S. stock market?
Answer
Apple Inc.
What is the U.S. stock exchange founded in 1792 under a buttonwood tree agreement?
Answer
New York Stock Exchange
In stock trading, what does a market order instruct a broker to do?
Answer
Buy or sell immediately at the best available price
What does diversification attempt to reduce in an investment portfolio?
Answer
Unsystematic risk
What is the ex-dividend date used to determine in stock trading?
Answer
Who is entitled to the next dividend
What is the price-to-earnings ratio calculated by comparing?
Answer
Share price and earnings per share
What is a stock index fund designed to track?
Answer
A market index
What does a stock’s market capitalization measure?
Answer
Total market value of its shares
What does a bear market mean for a stock-market index?
Answer
A decline of at least 20%
What is a dividend in stock-market investing?
Answer
A payment to shareholders
In stock markets, what does an IPO allow a private company to do?
Answer
Sell shares to the public