Stock Trading Practice Test

Question 1

Value investors frequently utilize the DCF method to determine the fair value of a company or business. The acronym DCF stands for

Accepted Answer

Discounted Cash Flow

Answer

Diluted Cash Flow

Answer

Distributed Cash Flow

Answer

Deferred Cash Flow

Question 2

If you want to practice stock trading but don't want to risk any money, you can use the

Accepted Answer

virtual trading platform

Answer

actual trading platform

Answer

Stock Exchange

Question 3

What single ticker symbol was superseded by the stock symbols MMI and MSI?

Accepted Answer

MOT

Answer

MTR

Answer

MRI

Question 4

Individuals or institutions who are licensed to buy and sell stocks are referred to as ____.
 You'll need them to make the real transactions if you wish to trade stocks.

Accepted Answer

Stock Brokers

Answer

Stock Exchange

Answer

Real Estate Agents

Question 5

M & A is a phrase that usually refers to

Accepted Answer

Mergers and Acquisitions

Answer

Criteria for a stock trade being Met and Affirmed

Answer

The Mean Amount of shares traded per time period

Question 6

The Volatility Index (VIX) is a

Accepted Answer

An indicator used to measure the perceived volatility of stock prices

Answer

A gauge of the likelihood that the stock market will shut down due to an unexpected event

Answer

A spot check of the number of floor traders at work on a given day

Question 7

Coffee, cocoa, sugar, wheat, and corn are all examples of

Accepted Answer

Soft commodities

Answer

Stocks that frequently experience mean reversion

Answer

Hard commodities

Question 8

When a stock buyer establishes a maximum price that he or she is willing to pay, the buyer is putting a

Accepted Answer

Limit Order

Answer

Negotiated Price Point Order

Answer

Set Purchase Arrangement(SPA)

Question 9

Stocks can be used to make money if you

Accepted Answer

Buying low and selling high

Answer

Buying and selling at the same price

Answer

Buying high and selling low

Question 10

Which of the following isn't (or was) a stock exchange?

Accepted Answer

HQSX

Answer

NYSE

Answer

NASDAQ