1. What do you call a stock market trend that is neither bullish nor bearish?
Chicken market
Flat market
Tortoise market
Wrong! Try again..
Wrong!
A bullish trend is when the stock markets are rising. The bearish trend denotes that the markets are on a downward spiral. But when the market is flat, showing neither an upward nor a downward trend, it is called chicken market.
Right!
A bullish trend is when the stock markets are rising. The bearish trend denotes that the markets are on a downward spiral. But when the market is flat, showing neither an upward nor a downward trend, it is called chicken market.
2. What is the term given to picking stocks that have already sunk to the bottom but still have some bounce in them?
Stock picking
Bargain hunting
Cigar butt investing
Wrong! Try again..
Wrong!
The correct answer is Cigar butt investing. Investment guru Warren Buffet called it that when finding, among the things others have thrown away, sufficient value to give you 'one or two more good puffs.' The puffs are considered free because no one even thought them worth picking up.
Right!
Investment guru Warren Buffet called it that when finding, among the things others have thrown away, sufficient value to give you 'one or two more good puffs.' The puffs are considered free because no one even thought them worth picking up.
3. What is a poison pill?
A tactic against a hostile takeover
A hot stock tip
A nasty rumour
Wrong! Try again..
Wrong!
Any tactic by a company designed to defend against a hostile takeover is known as a poison pill. A hostile takeover is one that goes against the wishes of the target company's management and is the opposite of a friendly takeover.
Right!
Any tactic by a company designed to defend against a hostile takeover is known as a poison pill. A hostile takeover is one that goes against the wishes of the target company's management and is the opposite of a friendly takeover.
4. What does breadth of the market refer to?
Number of trades done in a day
Number of stocks traded
The difference between buying and selling
Wrong! Try again..
Wrong!
The correct answer is the number of stocks traded out of the total number of stocks listed.
Right!
It refers to the number of stocks traded out of the total number of stocks listed.
5. What does widow's stock mean?
Stock bought by women
Stock that is no longer in demand
Stock that offers good dividend and a lower risk of losing one's money.
Wrong! Try again..
Wrong!
A widow's stock refers to one that offers a generous dividend and a reduced risk of losing money for shareholders. It is the kind of stock you will offer to a widow who does not want to lose her money.
Right!
6. What is short selling?
A quick sale
Selling shares you don't own with the intention of buying them later at a lower price
Selling immediately after buying
Wrong! Try again..
Wrong!
Short selling is selling shares you don't own with the intention of buying them later at a lower price.
Right!
7. What is a bubble?
Rapidly rising stock prices
False information circulated on a stock
A company about to go bust
Wrong! Try again..
Wrong!
A bubble is used to describe rapidly rising stock equity prices. Either in the overall market or in a sector. Some investors feel the rise is unfounded and the term is used because, like a bubble, the prices will reach a point at which they pop and collapse violently.
Right!
A bubble is used to describe rapidly rising stock equity prices. Either in the overall market or in a sector. Some investors feel the rise is unfounded and the term is used because, like a bubble, the prices will reach a point at which they pop and collapse violently.
8. What is insider trading?
Using information unknown to the public to make a profit on a stock
False information circulated on a stock
Trading done by company employees
Wrong! Try again..
Wrong!
When an individual has information likely to affect the stock's price - currently unavailable to the public - and which is only known to a few employees and management, and uses that information to buy or sell that stock to make a profit.
Right!
When an individual has information likely to affect the stock's price - currently unavailable to the public - and which is only known to a few employees and management, and uses that information to buy or sell that stock to make a profit.
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