
Equity market Knowledge Test
Flashcard
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Other
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Professional Development
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Practice Problem
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Hard
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10 questions
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1.
FLASHCARD QUESTION
Front
What does the term "equity market" refer to?
Back
A market for buying and selling company stocks
2.
FLASHCARD QUESTION
Front
What is the primary function of a stock exchange?
Back
To facilitate the buying and selling of securities
3.
FLASHCARD QUESTION
Front
What is meant by a “bull market”?
Back
A market where prices are generally rising
4.
FLASHCARD QUESTION
Front
What is an IPO (Initial Public Offering)?
Back
A company issuing new shares to the public for the first time
5.
FLASHCARD QUESTION
Front
Which of the following is a key indicator of a company's financial health? The stock’s market price, The company's earnings per share (EPS), The volume of shares traded, The interest rate
Back
The company's earnings per share (EPS)
6.
FLASHCARD QUESTION
Front
Which of the following is true about dividend payments? Dividends are paid to bondholders, Dividends are typically paid in the form of stock splits, Dividends are paid to shareholders as a portion of the company’s profits, Dividends are mandatory for all companies to pay
Back
Dividends are paid to shareholders as a portion of the company’s profits
7.
FLASHCARD QUESTION
Front
What is the role of a market maker in the stock market?
Back
To ensure that stocks have a liquid market by buying and selling on demand
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