Quiz Answer Key and Fun Facts
1. When a market is generally going up in value it is known as a ____ market?
2. When a market is going down in value it is known as a _____ market?
3. One strategy to make money when a stock is declining in value is to borrow shares and sell them at the current market price - hopefully these shares can then be rebought at a lower price and returned. This strategy is known by what two-word phrase?
4. Stock options can provide a way to make huge profits when large price moves occur. In order to benefit from a FALLING stock price, an investor would want to own what kind of stock option?
5. Stock options provide a way to make huge profits when large price moves occur. In order to benefit from a RISING stock price an investor would want to own what kind of stock option?
6. It is possible to limit losses on many stock investments. One such way is to institute automatic sell orders if the stock falls to a certain price. This triggers the brokerage firm to sell a particular holding. This is known by what name?
7. If you are feeling optimistic about a stock going up in price, it is possible to acquire more stock than you can afford by buying stock on what?
8. Risky investment strategies where the investor has not limited his/her losses is known as a _______ position. What is the missing word?
9. What is an "odd lot" when it comes to a stock position/holding?
10. Which of the following is not a major USA stock exchange?
Source: Author
ionstox
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stedman before going online.
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