General Awareness: Stocks and Bond Quiz

1. To have or own a share in a company is to have a

a) mortgage
b) bond
c) stock

The correct answer is c) stock

2. A certificate of a loan to the government or a corporation that is repaid with interest or a sum at a future time is a

a) mortgage
b) bond
c) stock

The correct answer is b) bond

3. Instruments such as stocks, bonds, mortgages giving to their legal holders rights to money or other property are

a) securities
b) stock exchanges
c) commodities

The correct answer is a) securities

4. Profits of a firm that are distributed or given out to its investors are called

a) mortgages
b) bonds
c) dividends

The correct answer is c) dividends

5. A type of stock in which the stockholder gets a certain percentage of dividends each year based on the profits of the company is

a) stock exchange
b) common stock
c) preferred stock

The correct answer is c) preferred stock

6. A type of stock in which the stockholders get dividends based on the remainder of the profits after preferred stockholders have been paid their dividends is

a) stock exchange
b) common stock
c) bond

The correct answer is b) common stock

7. An investment company that continually offers new shares and buys existing shares back at the request of the shareholder and uses its capital to invest in diversified securities of other companies is a

a) stock exchange
b) mortgage company
c) mutual fund

The correct answer is c) mutual fund

8. To commit (money or capital) in order to gain a financial return - to put one's money into a business or project to make more money is to

a) borrow
b) invest
c) bankrupt

The correct answer is b) invest

9. An investor always makes money or profit when he/she owns stocks.

a) True
b) False

The correct answer is b) False