Test Your Stock Market Knowledge - Intermediate 1. What is technical analysis? Studying company fundamentals Analyzing past price and volume charts Reviewing audit reports Reading economic news 2. What is a candlestick chart used for? Predicting economic policy Tracking dividends Analyzing price movements and trends Calculating taxes 3. What does "support level" indicate? Government price control Price level where stock is expected to rise Level at which stock must be sold Maximum profit zone 4.What is "resistance level"? Legal cap on price Price level where selling pressure is high Support from mutual funds Bankruptcy threshold 5. What is market capitalization? Company’s total sales Share price x number of outstanding shares Net profit Market share 6. What is a ‘limit order’? Buying/selling at market price Pre-booking for IPO Order to buy/sell at a specific price Stop trading permanently 7.What is a stock split? Company breakup Reduction in number of shares Increase in number of shares without changing value Selling shares in two markets 8. What does beta measure in stocks? Dividend yield Volatility relative to market Profit margin Debt ratio 9. What is the P/B ratio? Price-to-Bond Profit-to-Buy Price-to-Book value Price-to-Breakout 10. What is F&O in the Indian stock market? Fixed & Outstanding Futures & Options Free & Open Finance & Operations 11. What does a high P/E ratio typically indicate? Undervalued stock Company is closing Stock is overvalued or has high growth potential No dividend payout 12. What is the role of a market maker? Regulate companies Reduce price volatility by providing liquidity File tax returns Conduct audits 13. What is arbitrage? Buying at high price Simultaneous buying/selling to profit from price difference Short selling Derivatives trading 14. What is a margin account? For paying utility bills For credit card payments Borrowing money from broker to trade Saving fixed deposits 15.What is the VIX index? Banking growth rate Currency value Volatility Index or "fear gauge" Mutual fund performance 16. What is SIP in mutual funds? Single Investment Plan Systematic Investment Plan Savings in Property Short Interest Product 17. What is 'short selling'? Selling real estate Selling shares not owned, hoping to buy back lower Selling mutual funds Selling within 1 hour 18. What is book value of a company? Market cap Intrinsic value Total assets - liabilities Shareholder equity + profit 19.What is meant by 'diversification' in investing? Buying similar stocks Spreading investments across different sectors/assets Buying only gold Following news blindly 20. What is a circuit breaker in stock markets? Electrical switch Trading halt when prices move beyond limit Broker's penalty Dividends cutoff 21. What is a mutual fund NAV? Net Asset Value per unit New Account Verification Net Average Value Non-Available Value 22. What is the role of a depository in the stock market? Issue tax forms Store physical shares Hold securities electronically Print currency 23. What is the function of a clearing house? Stores gold Handles settlement of trades Buys real estate Issues IPOs 24. What is 'liquidity' in stocks? Ability to make profit Availability of water Ease of buying/selling without big price change Number of traders online 25. What is a REIT? Real Estate Investment Trust Revenue Equity Investment Team Return Equal Index Tracker Retail End Investment Term 26. What is an index fund? Mutual fund that tracks a market index Gold saving scheme Foreign investment Daily savings plan 27. What is a bonus issue? Issuing debt Cash reward to shareholders Free additional shares given by company Broker incentive 28.What is alpha in investing? Return from real estate Risk level Excess return over market Inflation rate 29. What is the ex-dividend date? Dividend payment day Date after which new buyers don't get dividend Tax deduction date Company audit deadline 30. What does “market depth” mean? Stock's lifetime Number of years a company has traded Number of buy and sell orders at various prices Total company income Ready to sendPlease provide your contact information to proceed.First Name *PhoneEmail Address *Consent *Yes, I agree with the privacy policy and terms and conditions.Submit