stock market test
IF YOU HAD INVESTED $100 IN 1972 IN THE 500 STOCKS OF THE S&P500 INDEX, HOW MUCH WOULD YOU HAVE HAD IN 2018?
$1612
THE COMPANY APPLE HAS HOW MANY SHARES OUTSTANDING?
5,575,000,000 shares
WHAT DOES A STOCK REPRESENT?
A percentage of ownership of a company including assets and profits
WHAT IS A MUTUAL FUND?
A pool of securities you can buy as an investment
WHAT IS AN INDEX ETF?
An ETF that tracks a stock index, like the S&P 500
WHO WOULD BE THE MOST LIKELY TO BUY AN INVERSE ETF?
An investor who normally is not able to short-sell in their portfolio
WHO WOULD BE THE LEAST LIKELY TO BUY A LEVERAGED ETF?
An investor who thinks the underlying index will slowly go up over time
WHAT MAKES UP A "TICKER SYMBOL" IN THE UNITED STATES?
Between 1 and 5 letters only
WHAT SHOULD YOU LOOK FOR WHEN BUYING STOCK OF A COMPANY YOU KNOW?
If their stores always seem busy
What is a danger of over-diversification?
If your investments are spread thin, it is hard to beat the market
WHICH IS A CHARACTERISTIC OF OPEN-ENDED MUTUAL FUNDS?
Investors typically hold fractions of shares
HOW DO YOU BUY ETFS?
Like a stock, with the price constantly updating
IF YOU CHOOSE A PASSIVE INVESTING STRATEGY, HOW WILL YOUR PORTFOLIO LOOK WITH ITS FIRST ALLOCATION?
Mostly ETFs of industries you think will grow
WHAT IS ONE DIFFERENCE BETWEEN MUTUAL FUNDS AND ETFS?
Mutual Funds cannot be day-traded
WHAT WAS THE NAME OF NEW YORK CITY WHEN WALL STREET WAS FIRST BUILT?
New Amsterdam
WHAT IS PREFERRED STOCK?
Stock that gets paid dividends first
WHAT WAS THE BIGGEST EVENT LEADING TO STOCKS BEING THE MOST FREQUENTLY TRADED SECURITY TYPE ON THE EXCHANGE?
The Industrial Revolution
WHAT IS "NET CHANGE"?
The total amount a stock's price has changed since the previous trading day
WHY WOULD A STOCK HAVE A ".A" AT THE END OF ITS TICKER SYMBOL?
There are multiple classes of stock for this company
What is Capital Preservation?
To make sure you don't lose your initial investment
WHAT WAS THE MOST FREQUENTLY TRADED SECURITY TYPE IN THE EARLY DAYS OF WALL STREET?
bonds
WHY DID INVESTORS START USING TICKER SYMBOLS?
it was faster to move news using telegraphs with short names
OVER THE LAST 30 YEARS OR SO, WHICH INVESTMENT PRODUCED THE HIGHEST PERCENTAGE RETURNS?
stocks
OVER THE LAST 90 YEARS, WHICH INVESTMENT PRODUCED THE MOST VOLATILE RETURNS?
stocks
WHAT DOES IT MEAN TO "DIVERSIFY" YOUR PORTFOLIO?
to hold more than 1 stock For your stocks to not be all in the same area of the economy
WHERE WERE STOCKS FIRST CREATED?
Rome
HOW CAN YOU FIND STOCK NEWS ABOUT ANY COMPANY?
The Quotes page
HOW MANY COMPANIES ARE IN THE DOW-JONES INDUSTRIAL AVERAGE?
30
WHAT IS THE DJIA NAMED AFTER?
Charles Dow and his statistician Mr. Jones
WHAT IS THE MOST COMMON WINNING INVESTMENT STRATEGY FOR NEW BEGINNERS?
Buy what you know
WHICH OF THESE IS DIFFERENT BETWEEN ETFS AND MUTUAL FUNDS?
ETFs usually have lower fees than mutual funds
Why would you want to diversify between sectors?
In case a sector-wide event causes all stocks to drop
WHY DO INVESTORS USE FINANCIAL STATEMENTS WHEN CONDUCTING FUNDAMENTAL ANALYSIS?
It lets investors compare companies directly, apples to apples
WHAT IS A DISADVANTAGE OF MUTUAL FUNDS?
Mutual funds can have maintenance fees regardless of fund performance
WHERE DID TRADERS IN NEW YORK ORIGINALLY MEET?
Outside near a buttonwood tree
What is a good way to stay diversified?
Re-balance your portfolio every 3 months
HOW CAN YOU TELL WHAT PROFESSIONAL STOCK ANALYSTS RECOMMEND?
SeekingAlpha.com The Analysts page of the Quotes tool Searching for stock symbols on business websites
WHAT TOOLS DOES THIS SIMULATOR HAVE TO HELP YOU CHOOSE STOCKS?
Suggested Stocks lists Current market news Research tools with company information and quotes
WHICH OF THESE BUILDINGS HAVE NOT BEEN LOCATED ON WALL STREET?
The Supreme Court
WHAT DOES A STOCK QUOTE REPRESENT?
The last price a seller and buyer agreed to to make a trade
IN THE LATE 1800S, WHAT FACTORS LED TO THE GROWTH OF THE NYSE?
The need for funds to finance new companies and build railroads
WHICH OF THESE ITEMS CAN YOU FIND IN A STOCK QUOTE?
The stock's current daily volume
WHAT DOES IT MEAN IF A STOCK IS NEAR ITS RESISTANCE LINE?
The trend suggests the stock's price will fall
WHAT IS AN IPO?
When a company first sells shares of stock to the public
WHICH IS ONE MAJOR ADVANTAGE OF MUTUAL FUNDS?
You have a fund manager so you do not need to constantly monitor your investments
