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 stock market 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.
Questions: Stock Market Quiz
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?
b) Money account
c) Investing account
4. How do you calculate a company’s market capitalization?
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
Results for the Stock Market Quiz
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.
Question 2’s answer is B, dividend. Yield, rights, and coupon, are all financial terms used in other circumstances.
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!
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.
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 for this stock market quiz? Don’t forget to let us know in the comments below.
Podcast: The Stock Market Quiz
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Here’s a fun quiz that covers the popular stock indexes of the world, stocks paying out a portion of the company’s profit to the stockholders, account for making investments in the stock market, a company’s market capitalization and a company’s bankruptcy and payments to various stakeholders.
Show notes, transcript and online interactive version of the quiz at: https://www.easypeasyfinance.com/stock-market-quiz/