Stock Market Basics Quiz

What is the stock market primarily used for?

• Playing video games

• Buying and selling pieces of companies

• Shopping for clothes

• Watching movies

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Which of the following is a basic function of the stock market?

• To help people find jobs

• To allow trading of stocks between people

• To provide loans to students

• To sell groceries

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What does "IPO" stand for?

• Interesting Product Online

• Initial Public Offering

• Internal Process Operation

• International Payment Order

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What is a "stock"?

• A type of soup

• A piece of clothing

• Ownership in a company

• A new kind of technology

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What does it mean if a stock's price goes up?

• The company is losing money

• The stock is no longer available

• More people want to buy the stock than sell it

• The company has been sold

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What is a "dividend"?

• A type of stock

• Money paid to shareholders from a company's profits

• A fee for buying stocks

• A new product a company is selling

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What does "bear market" mean?

• A market where you can buy bears

• A market where prices are rising

• A market where prices are falling

• A market that is only open at night

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Who can buy stocks?

• Only adults over 18

• Only people working in the stock market

• Anyone with money to invest

• Only company CEOs

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What is a "broker"?

• A type of stock

• Someone who fixes broken things

• A person who buys and sells stocks for others

• A machine used in the stock market

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Why do companies sell stocks?

• To make the CEO richer

• To buy office supplies

• To raise money for the company

• Because they have too many

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