What does an exchange-traded fund, or ETF, trade like during the day?
Answer
An individual stock
80 Stock Market Basics Trivia Questions with Answers
80 public questions with answers, drawn from the well. How many can you answer?
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