Sunday, July 15, 2012

The Investor's IQ Test - Basic

Are you a novice or experienced investor? Think you know everything or at least a lot about the stock market? Take this test.

1. The stock symbol for AT and T, Inc. common stock is?
a. ATT
b. T
c. A
d. TEL

2. A call option will move in what direction when the stock moves up?
a. up
b. down
c. fluctuate
d. remain flat

3. The highest priced stock in the United States currently is
a. Apple
b. Google
c. ExxonMobile
d. Berkshire Hathaway

4. When interest rates go up, bonds go
a. up
b. down
c. fluctuate
d. remain flat

5. A bear market is a
a. rising market
b. falling market
c. fluctuating market
d. flat market

6. If you buy a stock on the ex-dividend date, you
a. are entitled to that dividend
b. are not entitled to that dividend
c. may or may not be entitled to the dividend based on the company's decision

7. When you short a stock, you make money when the stock
a. pays a dividend
b. goes up
c. goes down
d. has a stock split

8. What is the largest stock exchange in the world?
b. Tokyo Stock Exchange
c. London Stock Exchange
d. NYSE Euronext

9. Which of the following is a stock index?
a. Dow Jones Industrial Average
b. S and P 500
c. NASDAQ Composite
d. All of the above

10. Which of the following is most likely to grow in value long term?
a. common stock
b. preferred stock
c. bond
d. put

Have you written down all your answers?

Are you ready to check your answers?

Check your answers below:

1. b
2. a
3. d
4. b
5. b
6. b
7. c
8. d
9. d
10. a

If you find investment trivia interesting, you may want to check out Stock Market Trivia and Investment Trivia.

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