Stock Advisor For Beginners 3

Question 1

What is a stock exchange?

Accepted Answer

A marketplace where shares are bought and sold

Answer

Exchanges like the NYSE and Nasdaq facilitate trading of stocks.

Question 2

What is the 'bid price' in a stock quote?

Accepted Answer

The highest price a buyer is willing to pay

Answer

The bid is what buyers currently offer for a share.

Question 3

What is a market order?

Accepted Answer

An order to buy or sell immediately at the best available price

Answer

Market orders execute right away at the current market price.

Question 4

What does a limit order let you do?

Accepted Answer

Set a specific price at which to buy or sell

Answer

A limit order only executes at your chosen price or better.

Question 5

What is a 'bear market'?

Accepted Answer

A prolonged period of falling prices

Answer

A bear market is marked by declining prices and pessimism.

Stock Advisor Practice Test