Investment Market Analysis and Valuation 2

Question 1

What is a bear market?

Accepted Answer

A market experiencing a prolonged decline of 20% or more in asset prices from recent highs

Answer

A market with rising prices and strong economic performance

Answer

A market with no significant price movement for an extended period

Answer

A market limited to trading bear-related commodity futures

Question 2

What is the dividend yield of a stock?

Accepted Answer

The annual dividend per share divided by the stock's current price, expressed as a percentage

Answer

The total dividends paid by a company over its entire history

Answer

The percentage of profits a company retains rather than distributing

Answer

The number of times per year a company pays dividends

Question 3

What does 'market capitalization' mean?

Accepted Answer

The total market value of a company's outstanding shares, calculated as share price multiplied by shares outstanding

Answer

The total value of a company's physical assets and real estate

Answer

The maximum price a stock has ever reached

Answer

The amount of capital a company raised in its initial public offering

Question 4

What is a moving average in technical analysis?

Accepted Answer

The average price of a security over a specific time period, updated continuously as new prices are added

Answer

The average annual return of a stock since it went public

Answer

The percentage change in a stock's price over a rolling 12-month window

Answer

The average trading volume of a stock over the past month

Question 5

What is intrinsic value in stock analysis?

Accepted Answer

The perceived true or fundamental value of a stock based on analysis of financial data, independent of market price

Answer

The original purchase price of a stock adjusted for inflation

Answer

The book value of a company's tangible assets

Answer

The value assigned to a stock by credit rating agencies

Question 6

What is a resistance level in technical analysis?

Accepted Answer

A price level at which a stock has historically had difficulty rising above due to increased selling pressure

Answer

The lowest price a stock has traded at in the past year

Answer

The interest rate level at which the Federal Reserve stops raising rates

Answer

A regulatory cap set by the SEC on individual stock price increases