Day 2 Pre - assessment Stock Market Quiz

Which of the following is a characteristic of common stock?

• Priority over preferred stock in receiving dividends

• Voting rights in company decisions

• Guaranteed dividends

• No risk of losing value

What factor is most likely to influence the rise in a stock's price?

• Decrease in the company’s profit margins

• Increase in consumer demand for the company’s products

• A government policy restricting market growth

• The company’s decision to reduce its dividend payouts

When analyzing stock market trends, which of the following is most important for evaluating long-term investment decisions?

• Short-term fluctuations in stock prices

• The company's earnings growth over several years

• The overall economy's daily performance

• Media speculation about the stock market

Which of the following best describes how interest rates affect stock market operations?

• Higher interest rates generally encourage investors to buy stocks

• Lower interest rates may lead to higher stock prices as borrowing costs decrease

• Interest rates do not affect stock market operations

• Interest rates are only important for bonds, not stocks

What is a major factor investors should consider when deciding whether to invest in a particular stock?

• The company’s market share in its industry

• The company’s past stock price performance

• The overall trend of the stock market on the investment date

• The political climate of the country where the company is based