Basic Stock Market Quiz Mock Test: Paper 2 - Making India Self Dependent

2 votes, 5 avg

Stock Market Quizzes

Basic Stock Market Quiz Mock Test (Paper 2)

This is a FREE mock test. Beware of scammers who ask for money to attend this test.

Total number of questions: 30
Time allotted: 15 minutes
Pass Score: 40%
Certificate: Yes
Random questions: No
Do not refresh the page
All the best!

1 / 30

1. When you own a stock, what do you own a share of?

A) The company's debt

B) The company's assets

C) The company's customers

D) The company's office space

2 / 30

2. What is the role of dividends in stock investing?

A) They represent a company's liabilities

B) They are fees paid to stockbrokers

C) They are a portion of a company's profits paid to shareholders

D) They are stock trading commissions

3 / 30

3. What is the stock market term for a sudden and significant drop in stock prices?

A) Bull market

B) Bear market

C) Correction

D) Crash

4 / 30

4. What is the primary goal of investing in stocks?

A) To make short-term profits

B) To preserve capital

C) To generate long-term wealth

D) To pay off debt

5 / 30

5. In the context of stock markets, what does "bear market" mean?

A) A market with rising stock prices

B) A market with falling stock prices

C) A market with no trading activity

D) A market for bear-related merchandise

6 / 30

6. What is the term for a person who buys and sells stocks on behalf of others?

A) Stockbroker

B) Stock trader

C) Stockholder

D) Stock analyst

7 / 30

7. When you own a stock, what do you own a share of?

A) The company's debt

B) The company's assets

C) The company's customers

D) The company's office space

8 / 30

8. What is the role of dividends in stock investing?

A) They represent a company's liabilities

B) They are fees paid to stockbrokers

C) They are a portion of a company's profits paid to shareholders

D) They are stock trading commissions

9 / 30

9. What is the stock market term for a sudden and significant drop in stock prices?

A) Bull market

B) Bear market

C) Correction

D) Crash

10 / 30

10. Which financial instrument represents a loan made by an investor to a company or government in exchange for periodic interest payments and the return of the principal amount at maturity?

A) Stock

B) Bond

C) Mutual fund

D) Certificate of deposit (CD).

11 / 30

11. What is the name of a financial instrument that allows an investor to profit from the price movements of an underlying asset without owning the asset itself?

A) Stock

B) Option

C) ETF (Exchange-Traded FunD.

D) Futures contract

12 / 30

12. What does the term "market capitalization" (market cap) of a company represent?

A) The total revenue of the company

B) The total assets of the company

C) The total number of employees in the company

D) The total value of outstanding shares of the company's stock

13 / 30

13. What is the stock market term for a sudden and brief market decline followed by a rebound?

A) Crash

B) Correction

C) Flash crash

D) Bear market

14 / 30

14. Which stock exchange is often referred to as "Nasdaq"?

A) National Stock Exchange of India

B) New York Stock Exchange

C) National Association of Securities Dealers Automated Quotations

D) National Aeronautics and Space Administration

15 / 30

15. What is the primary role of stock market regulators like the SEC (U.S. Securities and Exchange Commission)?

A) To promote stock trading

B) To regulate the prices of consumer goods

C) To oversee and enforce securities laws and protect investors

D) To organize sports events

16 / 30

16. What is the term for a company's first sale of stock to the public?

A) Secondary offering

B) Private placement

C) Initial Public Offering (IPO)

D) Stock buyback

17 / 30

17. In stock trading, what does "short selling" involve?

A) Buying a stock with the expectation of long-term gains

B) Selling borrowed shares with the hope of buying them back at a lower price

C) Investing in high-risk stocks

D) Trading stocks on weekends

18 / 30

18. What is the term for the total return on an investment, including both capital gains and dividends, expressed as a percentage of the original investment?

A) Yield

B) Return on Investment (ROI)

C) Interest rate

D) Inflation rate

19 / 30

19. Which type of stock pays dividends consistently and is considered a reliable source of income for investors?

A) Growth stock

B) Value stock

C) Penny stock

D) Blue-chip stock

20 / 30

20. What is the name for a type of order that becomes a market order when a specified price is reached or surpassed?

A) Limit order

B) Stop order

C) Market-on-close order

D) Trailing stop order

21 / 30

21. What is the stock market term for a sudden, rapid increase in stock prices, often driven by excessive optimism?

A) Bull market

B) Bear market

C) Bubble

D) Correction

22 / 30

22. What is the role of a financial analyst in the stock market?

A) To design stock exchange trading platforms

B) To analyze financial data and provide investment recommendations

C) To organize cultural events at stock exchanges

D) To manage a company's marketing campaigns

23 / 30

23. What is a "ticker symbol" in the context of stocks?

A) A code used to identify stocks on a stock exchange

B) A musical instrument played at stock exchange events

C) A secret code used by stockbrokers

D) A type of stock trading strategy

24 / 30

24. What is the term for a type of investment fund that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities?

A) Stock option

B) Hedge fund

C) Mutual fund

D) ETF (Exchange-Traded FunD.

25 / 30

25. What is the stock market term for a situation where there are more sellers than buyers, causing prices to fall?

A) Bull market

B) Bear market

C) Bid-ask spread

D) Dividend yield

26 / 30

26. What is the role of a financial planner in the context of investing?

A) To perform traditional Indian dances at investment seminars

B) To provide investment advice to government officials

C) To help individuals create and implement a financial plan, including investment strategies

D) To organize sporting events for investors

27 / 30

27. What is the primary function of a stock exchange?

A) To buy and sell stocks directly to consumers

B) To regulate the prices of consumer goods

C) To organize cultural festivals

D) To provide a platform for buying and selling securities

28 / 30

28. What is the term for a stock that is considered undervalued and trading at a price lower than its intrinsic value?

A) Growth stock

B) Value stock

C) Blue-chip stock

D) Dividend stock

29 / 30

29. What is the stock market term for the practice of buying and holding stocks for an extended period, typically years or decades?

A) Day trading

B) Swing trading

C) Long-term investing

D) Short selling

30 / 30

30. What is the significance of the P/E ratio (Price-to-Earnings ratio) in stock analysis?

A) It measures the price of a stock relative to its book value

B) It indicates the total return on investment for a stock

C) It assesses a stock's valuation by comparing its price to its earnings per share

D) It measures the number of employees in a company

Please provide accurate information to ensure the delivery of your Achievement Certificate by mail

NameEmailPhone Number

Your score is

Please write your feedback

Thanks for giving your valuable feedback.

Please provide accurate information to ensure the delivery of your Achievement Certificate by mail

1 thought on “Basic Stock Market Quiz Mock Test: Paper 2”

Leave a Comment Cancel Reply