Stocks Quiz - Test your stocks investment knowledge

Stoks Quiz

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Question 1: The peak value of the Dow Jones index before the Great Depression was 380 points. When was the same level reached after depression?
1935
1940
1944
1954

Question 2: Holders of Preferred Stock have:
Usually no voting rights
Ownership in a corporation that has a higher claim on the assets than common stock
Ownership in a corporation that has a higher claim on the earnings than common stock
All of the above

Question 3: Penny stocks are:
Stocks with the price less than $1.
Stocks with the price less than $2.
Stocks with the price less than $5.
Stock that trades at a relatively low price and market capitalization.

Question 4: What stocks typically perform better in a recession?
Stocks of financial companies.
Stocks of pharmaceutical companies.
Stocks of casino companies.
Stocks of auto companies.

Question 5: Company A has a P/E ratio higher than Company B and Company B has a P/E ratio higher or equal than Company C. If all companies are part of the same industry, investors are expecting higher earnings growth in the future from:
Company A
Company B
Company C
Companies B and C

Question 6: Dollar-cost averaging is:
A strategy to buy low and sell high.
A way to sell stock shares to minimize capital gains.
An approach in which you invest the same amount of money in a stock at regular intervals.
None of the above.

Question 7: How many stocks are included in Dow Jones?
15
30
50
100

Question 8: A portfolio that has 85% of its assets invested in stocks would be best suited for:
A 25-year-old using the assets to pay for graduate college expenses over the next five years.
A 30-year-old investing for retirement.
A 50-year-old investing for income and capital preservation.
A 70-year-old investing for capital preservation.

Question 9: A company in which you hold stock files for Chapter 11. The company:
Is seeking protection under bankruptcy law and ceases all operations.
Is selling assets to a different company.
Is seeking protection under bankruptcy law and intends to reorganize itself.
Intends to split or reverse split its stock.

Question 10: Short-selling means:
Borrowing shares, selling them and buying them back for less money after the price has fallen.
Buying a small number of shares in order to cost average.
Selling shares after holding them for less than a day.
Selling shares at a loss.

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