10-points Stock Market Quiz: Test your stock market knowledge!

James Ryan Jonas

Are you done taking Part 1 of this quiz? If you still haven’t, head over to this Stock Market Jargons Quiz (Part 1).

If you’re already done with it, you’re probably ready to take Part 2.

Let’s see if you’ll get these 10 new stock market questions right.

Grab a pen and paper. No cheating!

Stock Market Jargons Quiz (Part 2)

1) San Miguel Corp. (SMC) offered a 10% stock dividend in its last stockholder’s meeting. SMC is offering to:

A) buy each stockholder’s 10% ownership in SMC
B) sell its 10% stock to be equally divided to shareholders
C) pay each common shareholder a portion of the company’s earnings in the form of stock

2) An investment is well-hedged if:

A) it is protected against losses
B) it has limited losses
C) an investor limits losses on a certain stock by establishing an opposite position in the same stock
D) Both A and B
E) Both A and C

3) A broker is flipping if he/she is:

A) unsure what stock to recommend to you
B) losing his/her mind
C) asking customers to buy a stock while another broker is simultaneously saying that their customers sell that stock

4) Short selling is:

A) buying stocks without enough cash
B) a strategy used to profit from an expected decline in stock prices
C) selling securities that the investor does not own by borrowing them with the intention of buying them at a lower price in the future
D) Both A and C
E) Both B and C

5) Someone handed you a “red herring”. It is:

A) a decoy for a stock your broker plans to buy
B) an abbreviated version of a company’s prospectus or detailed information submitted before an initial public offering
C) a report of your portfolio losses

6) The “poison pill” is the term used to describe a:

A) false tip
B) nasty rumor about a company
C) stock designed to defend against a hostile takeover

7) If the market is described as overbought, the stock market is:

A) seen to be bearing the symptoms of a future decline
B) filled with too many buyers
C) expected to break the resistance and will go higher further

8) The PSEi’s support is said to be at 7,500 and its resistance level at 8,000. These levels refer to:

A) where buying and selling, respectively, are typically triggered
B) the prices where buyers and sellers agree to sell their stocks
C) minimum and maximum prices the PSEi can reach within the day

9) The Net Asset Value of a company refers to:

A) Total assets plus liabilities divided by total outstanding shares
B) Total assets minus liabilities divided by total outstanding shares
C)Total assets multiplied by liabilities divided by total outstanding shares

10) A company asks its shareholders to waive their pre-emptive rights. The company is saying that investors:

A) defer their right to vote on the next stockholder’s meeting
B) take the vote similar to the vote of the Board during the stockholder’s meeting
C) agree not to buy new common shares before the stocks are offered to other investors

Answers :

1. C
2. E
3. C
4. E
5. B
6. C
7. E
8. A
9. B
10. C

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 1)

What’s your score? Share in the comments section below. 🙂

James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.