When you’re asked to “hit” the shares, what do you do?
Should you feel afraid if you were offered a “warrant”?
Take this 10-item quiz and see how much you know about several stock market jargons. You’d be surprised that some familiar words have different meanings in the context of stock market trading.
All set? Grab a pen and a piece of paper. Make sure you don’t cheat!
Stock Market Quiz
Instruction: Choose from the given three choices the best answer to each question below.
1) What’s a ticker tape?
- A) It shows you the latest information on stocks and company news
- B) It’s a moving electronic display that shows the stocks symbols and prices at which each buying or selling order is executed
- C) It displays the company disclosures submitted by each publicly listed company
2) EBITDA is an acronym for earnings before interest, tax, depreciation and amortization. It is useful to know because:
- A) It’s the best measure of a company’s earnings
- B) It tells the investor how much cash a business raises before interest is paid
- C) It’s the primary basis of a stock’s Target Price
3) An “ask” and “bid” refer to the:
- A) the buying and selling price of a stock at a given time
- B) the offer price and the matching price
- C) the lowest price to sell and the highest price to buy a stock
4) Investors sometimes use an “arbitrage” strategy in stocks like PLDT, Sun Life, and Manulife. What exactly is “arbitrage”?
- A) Buying and selling of shares simultaneously from different markets to try to make a profit from short-term price differences depending on the foreign exchange
- B) Buying and selling a combination of these shares from different markets to take advantage of bargains
- C) Buying and selling of shares through foreign markets to take advantage of tax rules
5) When someone asks you to “hit” shares, what do you do?
- A) Submit the stock certificate to your broker
- B) Cancel an order
- C) Buy or sell a stock at a particular price posted on the trading board
6) In stock trading, the “street name”:
- A) is the code name assigned to each licensed stock broker
- B) shows the shares you own but registered in the name of your broker
- C) is your complete address submitted to your broker for record
7) If you own a “warrant” in stocks, you have:
- A) the benefit of receiving a fixed number of stocks in the future without the need to shell out money
- B) have the obligation to buy stocks at a given price in the future
- C) have the right to buy a company’s shares at a set price in the future
8) Some foreign investors are not too keen on investing in the Philippine stock market because it is a “thin market”. This means our stock market lacks:
- A) a large number of buyers and sellers
- B) a lot of alternative investment avenues
- C) a huge number of stocks available for trade
9) The trading hours in the Philippine Stock Exchange are:
- A) from 9:00 AM to 5:00 PM
- B) from 9:30 AM to 12 NOON
- C) from 9:30 AM to 3:30 PM
10) Book value refers to
- A) the theoretical value of the company if all assets were liquidated or sold at the prices carried on the balance sheet and all liabilities were paid off
- B) the value of the company as stated in its financial statements
- C) the earnings of the company generated through recurring operations, excluding one-time gains and losses
Check out the answers below!
Check your score:
1-3 points = Aral-aral muna, baka malugi ka sa stocks!
4-5 points = Wag laging hit or miss! Be informed!
6-7 points = Konting push pa, panalo ka na!
8-9 points = Amazing! Galing-galing!
10 points = Excellent! You’re a stock market whiz, Miss/Mr. Perfect!
Take the other Stock Market Quiz: Stock Market Jargons Quiz (Part 2)
What’s your score? Share in the comments section below. :)