Have you ever wondered how much you know about stocks and the stock market – do you think you are a pro, or do you want to learn more about it? Figure out where you stand with this short quiz.
You’ll have 5 seconds to choose an answer. Remember to have a pencil and paper ready – so you can write down your score. The correct answers – and which videos to watch to learn more about each question – will be covered at the end of the video.
1. Which of these is one of the most popular stock indexes in the world?
a) S&P 30
b) S&P 100
c) S&P 500
d) S&P 1000
2. Many stocks pay out a portion of the company’s profit to the stockholders. What is this called?
3. What type of account do you use to invest in the stock market?
a) Brokerage account
b) Money account
c) Investing account
d) Checking account
4. How do you calculate a company’s market capitalization?
a) Assets times liabilities
b) Dividend per stock, times stock price
c) Average employee wage, times stocks outstanding
d) Stocks outstanding, times stock price
5. If a company goes bankrupt, who gets paid first?
a) The stockholders
b) The bond holders
c) The index fund holders
d) The preferred stock holders
Now to the results. But first, please take a minute to share this quiz with your family and friends, so you can compare their score to yours. Okay, to the results.
The answer to question 1 is C, S&P 500. The S&P 500 is a very popular stock index that serves as a major benchmark of the US stock market. To learn more, look at our video on S&P 500 in the description box below.
Question 2’s answer is B, dividend. Yield, rights, and coupon, are all financial terms used in other circumstances. To learn more, check out our video on dividend linked in the description.
The correct answer for question 3 is A, brokerage account. A brokerage account is an account used to invest in many things – like stocks, ETFs, bonds, and more! To dive deeper into this topic, take a look at our video on brokerage account in the description box below.
The answer to question 4 is D. To calculate a company’s market cap, or market capitalization, you multiply stocks outstanding by the stock price. Market cap is a good way to gauge the size of a company. To learn more, check out our video on market cap in the description box below.
Question 5’s answer is B, the bond holders. When a company goes bankrupt, bond holders get the money from the bankruptcy proceedings first, then preferred stock holders, and lastly, the regular stock holders.
What’s your result?
So what’s your score? Don’t forget to let us know in the comments below.