47 Multiple choice questions

Definition: a person who links buyers and sellers of stock

• asset

• shareholder

• stockbroker

• dividend

Answer explanation

A stockbroker is a person who facilitates the buying and selling of stocks between buyers and sellers, making it the correct answer. The other options do not describe this role.

A New York City-based stock exchange, which is considered the largest stock exchange in the world.

• Nasdaq composite index

• London stock exchange

• New York Stock Exchange (NYSE)

• Tokyo stock exchange

Answer explanation

The New York Stock Exchange (NYSE) is the largest stock exchange in the world, located in New York City. The other options, such as Nasdaq, London, and Tokyo stock exchanges, do not hold this title.

Definition: the movement of money in and out of a business or bank account.

• stock market

• cashflow

• portfolio

• asset

Answer explanation

The correct answer is 'cashflow' as it specifically refers to the movement of money in and out of a business or bank account, unlike the other options which relate to investments or assets.

Definition: a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools

• Corporate bond

• Municipal bond

• Stock

• Junk bond

Answer explanation

A municipal bond is specifically issued by state or local governments to fund public projects like highways, schools, and parks, making it the correct choice for the given definition.

Definition: A system for buying and selling shares of companies

• stock market

• bull market

• capital market

• cashflow

Answer explanation

The correct answer is 'stock market' as it specifically refers to the system where shares of companies are bought and sold. Other options like 'bull market' and 'capital market' do not define this system directly.

Definition: A nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically.

• WALL STREET JOURNAL

• NASDAQ

• INVESTOR

• INDEX

Answer explanation

NASDAQ is a nationwide electronic system that connects dealers for buying and selling securities electronically, making it the correct answer. The other options do not describe such a system.

A corporation that has only a few stockholders and whose stock is not available for sale to the general public.

• private corporation

• transaction

• double taxation

• privately held corporation

Answer explanation

A corporation with few stockholders and non-publicly traded stock is defined as a privately held corporation. This term accurately describes the characteristics outlined in the question.

Definition: daily paper that provides detailed coverage of the business and financial world

• Income Statement

• Mutual Funds

• Wall Street Journal

• Nasdaq

Answer explanation

The Wall Street Journal is a daily paper known for its in-depth coverage of business and financial news, making it the correct answer. The other options do not fit this definition.

A person who invests in a corporation by buying stock and is a partial owner.

• dividend

• investor

• shareholder

• stock market

Answer explanation

A shareholder is a person who buys stock in a corporation, making them a partial owner. This term specifically refers to individuals holding shares, distinguishing them from general investors or terms like dividend.

A bond that a corporation issues to raise money to expand its business.

• Municipal bond

• Diversification

• Junk bond

• Corporate bond

Answer explanation

A corporate bond is issued by a corporation to raise funds for business expansion. Unlike municipal bonds, which are issued by governments, corporate bonds specifically serve corporate financing needs.