Stock Market Basics Part 1 Trivia Quiz

Answer: Wall Street

Wall Street is located in Lower Manhattan, New York City. The stock exchange formally opened in 1792 following the Buttonwood Agreement. Prior to this date traders and speculators would meet under a buttonwood tree which grew at the bottom of Wall Street.

Answer: Monte Carlo

Monte Carlo has a casino, which some would say is pretty much the same as a stock market when it comes to losing money.

Answer: Bulls

"Bulls" is a term given to investors who believe the market will rise and invest accordingly. "Bears" believe the opposite and hence take a different investment strategy. You may also come across "Stags" who actually borrow money they don't have to invest in particular stocks.

Answer: Insults

Almost any trade-able commodity can be bought or sold. Oil and food products such as wheat and sugar are also traded. Insults abound between traders but are not considered a trade-able item.

Answer: False

This is most definitely untrue. As a stockholder you actually own part of the company and are entitled to a share of any profits. As a bondholder you are lending money to the company in return for a rate of interest and have no entitlement to a share of profits.

Answer: All of these

Stock markets are extremely sensitive to good and especially bad news. Any of the events mentioned would probably be sufficient to send tremors through world stock markets.

Answer: Profit

The reason people play the market is to make money and hopefully sell things at a greater price than they originally paid. This is called profit. A loss is exactly the opposite. An asset is the investment you actually hold.

Answer: Michael Douglas

This film nicely portrays the skulduggery that goes on in financial worlds. Michael Douglas is the ruthless speculator who coined the phrase "Lunch is for wimps". Nick Leeson was the real life trader who caused Baring's Bank to collapse following some disastrous speculation on the Japanese Stock Exchange.

Answer: United Kingdom

FTSE is an acronym for Financial Times/Stock Exchange; the two bodies responsible for the production of the index. As well as the FTSE 100 several other indices are produced by FTSE covering all aspects of the UK stock market.

Answer: Dividend

Dividends are normally paid twice a year; an interim dividend is paid based on expected annual profit and a final dividend representing the actual results. In a corporation's financial year where finances have not been good the dividend may be suspended. Coupon is the term used to describe the rate of interest payable on a corporate bond and does not reflect the profitability of a company.