FREE Stock Market Question and Answers
Define the stock market.
Explanation:
The phrase "stock market" describes a number of marketplaces where shares of publicly traded firms can be purchased and sold. Such financial transactions take place on official exchanges and in over-the-counter (OTC) markets that adhere to a predetermined set of rules.
What do the bull and the bear represent?
Explanation:
A bull is someone who invests in commodities or securities in anticipation of a price increase or someone whose activities cause such an increase. The opposite is a bear, who sells assets or goods in anticipation of a decrease in price.
A thin market is also known as a "illliquid market," and it is defined by:
Explanation:
A stock, bond, or other asset is said to be illiquid if it cannot be quickly and easily sold or exchanged for cash without suffering a significant loss in value. Because there is little trading activity or interest in the issue, as shown by a lack of eager and willing buyers or speculators to buy or sell the asset, illiquid assets may be difficult to sell rapidly. Illiquid assets thus frequently exhibit more price volatility, broader bid-ask spreads, and lesser trading volume.
The size of the market demonstrates
Explanation:
Market breadth is a tool that traders use to gauge the direction of the market as a whole as well as the health of the index. Market breadth indicators can't be used to forecast market movements or price reversals because they aren't always totally correct.
Low-cost stock investments are referred to as penny stocks. Usually, the stock exchange is where these equities are traded.
Explanation:
Stocks known as penny stocks are offered for less than $5 a share. This phrase originally meant equities with a value of less than $1, but its connotation has evolved through time. Historically, companies with financial troubles or those that are just starting out have issued penny stocks (e.g., bankruptcy).
Which of the following is true regarding blue chip stocks?
Explanation:
A big, well-known corporation is considered a blue chip stock. These are often big, established, financially strong businesses that have been around for a while, have consistent earnings, and frequently distribute dividends to investors.
What variables impact the stock market?
Explanation:
Political unrest, interest rates, current affairs, exchange rate fluctuations, natural disasters, and many more factors all have an impact on the stock market. These variables may impact your yields, but if you have a firm grasp of the market, you can choose when is the best to buy or sell stocks.