Stock Markets

What is the stock market?

• A physical marketplace where stocks are bought and sold

• An electronic marketplace where stocks are bought and sold

• A place where companies disclose information to the public

• A place where market participants can access publicly listed companies

What causes stock prices to move?

• News and events

• Demand and supply mismatch

• Different opinions of market participants

• All of the above

What happens after you buy a stock?

• The stock is physically delivered to you

• The stock is electronically credited to your DEMAT account

• The stock is transferred to your broker's account

• The stock is held in a separate holding account

What is the holding period?

• The period during which you hold a stock

• The period during which a stock is traded on the market

• The period during which a stock is listed on the exchange

• The period during which a stock is owned by a company

What is the difference between a trader and an investor?

• A trader has a short-term view, while an investor has a long-term view

• A trader takes more risks, while an investor takes fewer risks

• A trader buys and sells stocks frequently, while an investor holds stocks for a longer period

• All of the above

What is the purpose of CAGR?

• To calculate the absolute return of an investment

• To compare returns of different investments over multiple years

• To calculate the annual yield of an investment

• To determine the holding period of an investment

What is the main factor that moves stock prices?

• News and events

• Demand and supply mismatch

• Market sentiment

• Company fundamentals

What is the role of the stock exchange?

• To create a market place for buyers and sellers

• To disclose information about publicly listed companies

• To match buyers and sellers electronically

• All of the above

What are the corporate privileges of owning a stock?

• Dividends, stock split, bonus, voting rights

• Discounts on company products, exclusive access to company events

• Priority access to IPOs, insider trading opportunities

• None of the above

What is the difference between absolute return and CAGR?

• Absolute return is for short-term investments, while CAGR is for long-term investments

• Absolute return factors in the time component, while CAGR does not

• Absolute return is expressed as a percentage, while CAGR is expressed as a rate

• Absolute return is used to compare returns, while CAGR is used to calculate the growth rate