Investment Jobs Equity Markets and Stock Analysis Test 2

Question 1

Which technical analysis indicator is used to identify overbought or oversold conditions on a scale of 0 to 100?

Accepted Answer

Relative Strength Index (RSI)

Answer

Moving Average Convergence Divergence (MACD)

Answer

Bollinger Bands

Answer

Fibonacci Retracement

Question 2

In fundamental analysis, what does the Debt-to-Equity (D/E) ratio measure?

Accepted Answer

The proportion of financing from creditors versus shareholders

Answer

How efficiently a company generates profit from sales

Answer

The growth rate of a company's earnings over time

Answer

The dividend payout relative to share price

Question 3

What is 'short selling' in equity markets?

Accepted Answer

Selling borrowed shares hoping to repurchase at a lower price

Answer

Buying stocks and holding them for under one year

Answer

Selling a small number of shares in a single transaction

Answer

Placing sell orders with short time-in-force conditions

Question 4

Which of the following best describes a 'blue-chip' stock?

Accepted Answer

A share of a large, well-established, financially stable company

Answer

A penny stock with high growth potential

Answer

A newly listed IPO with no earnings history

Answer

A stock that pays no dividends and retains all earnings

Question 5

What is the purpose of a stock split?

Accepted Answer

To reduce the share price by increasing the number of shares outstanding

Answer

To increase the company's total market capitalization

Answer

To distribute company assets to shareholders as a special dividend

Answer

To merge two classes of shares into one common stock

Question 6

What is the 'ask price' in stock trading?

Accepted Answer

The lowest price a seller is willing to accept for a stock

Answer

The highest price a buyer is willing to pay for a stock

Answer

The last price at which a stock was traded

Answer

The average of the daily high and low prices

Question 7

Which of the following is an example of a leading economic indicator for equity market analysis?

Accepted Answer

Purchasing Managers' Index (PMI)

Answer

Unemployment rate

Answer

GDP growth rate

Answer

Consumer Price Index (CPI)