Questions & Answers
Browse all 25 questions from the
Introduction to Stock Markets study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
What is a 'share' of a company?
-
A
A piece of a toy
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B
A small part of ownership in a business
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C
A type of paper money
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D
A way to borrow books
2
Where do people go to buy and sell stocks?
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A
A grocery store
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B
A library
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C
A stock exchange
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D
A park
3
What is the main goal of most businesses that sell stocks?
-
A
To help people exercise
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B
To make a profit
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C
To give away all their products
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D
To hide their money
4
When a company becomes very successful, what can happen to the value of its shares?
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A
They disappear
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B
They become invisible
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C
They can increase in value
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D
They turn into coins
5
What is a 'publicly traded' company?
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A
A company owned by the government
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B
A company that lets anyone buy its shares
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C
A company that only makes cars
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D
A company that is closed down
6
What is the name of the paper or digital record that shows you own a piece of a company?
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A
A stock certificate
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B
A library card
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C
A grocery list
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D
A birthday card
7
What do we call a person who owns a share of a company?
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A
A driver
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B
A shareholder
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C
A teacher
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D
A gardener
8
Which of these is a real stock exchange located in New York?
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A
The Big Toy Store
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B
The New York Stock Exchange
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C
The Sunny Street Market
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D
The Local Library
9
What does 'investing' mean?
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A
Buying something to help it grow in value
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B
Throwing money away
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C
Running a race
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D
Playing a video game
10
If a company does not perform well, what can happen to the price of its shares?
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A
They always stay the same
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B
They can decrease in value
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C
They turn into gold
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D
They become free
11
What is a 'dividend'?
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A
A type of candy
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B
A small amount of profit paid to shareholders
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C
A tax you pay to the city
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D
A piece of office furniture
12
Who helps people buy and sell stocks on the exchange?
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A
A stockbroker
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B
A baker
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C
A bus driver
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D
A zookeeper
13
What is a 'ticker symbol'?
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A
A drawing of a cat
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B
A short code used to identify a company
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C
A type of clock
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D
A postage stamp
14
Why do companies sell stocks to the public?
-
A
To get money to grow their business
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B
To make friends
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C
To decorate their offices
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D
To give away free toys
15
What does the 'market' in stock market refer to?
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A
A place to buy fresh fruit
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B
A place to buy and sell ownership in companies
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C
A place to play sports
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D
A place to sleep
16
Which of these is a famous index that tracks the performance of many companies?
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A
The S&P 500
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B
The Alphabet Soup
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C
The Counting Club
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D
The Reading List
17
What is a 'portfolio'?
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A
A collection of different investments owned by a person
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B
A type of sandwich
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C
A winter coat
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D
A school bag
18
What does it mean if a stock price is 'volatile'?
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A
It changes very quickly
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B
It never changes
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C
It is very heavy
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D
It is very cold
19
What is a 'bear market'?
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A
A market that sells teddy bears
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B
A time when stock prices are generally falling
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C
A place to buy honey
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D
A zoo exhibit
20
What is a 'bull market'?
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A
A place to see cows
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B
A time when stock prices are generally rising
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C
A store that sells sports equipment
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D
A farm
21
What do we call the total value of all of a company's shares?
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A
Market capitalization
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B
A piggy bank
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C
A shopping cart
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D
A price tag
22
Can you buy shares in companies that make things like computers or food?
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A
Yes, if they are public
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B
No, only governments can
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C
Only on weekends
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D
Only if you have a million dollars
23
What does the stock exchange provide for buyers and sellers?
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A
A safe place to trade
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B
A free lunch
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C
A place to sleep
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D
A playground
24
Are stocks considered a type of asset?
-
A
Yes, they are financial assets
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B
No, they are toys
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C
No, they are food
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D
No, they are clothes
25
What happens if you own a share and the company makes a profit?
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A
You get to eat the profit
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B
You might receive a dividend
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C
You have to go work there
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D
You must sell the company
