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Quiz on stock market for beginners

Q1) What is the name of the stock exchange in India?

A) Bombay Stock Exchange (BSE)

B) Bangalore Stock Exchange (BSE)

C) New Delhi Stock Exchange (NDSE)

D) Mumbai Stock Exchange (MSE)

Answer: A) Bombay Stock Exchange (BSE)

Q2) What is the currency used in the stock market in India?

A) Euro

B) Pound

C) Dollar

D) Rupee

Answer: D) Rupee

Q3) Who regulates the stock market in India?

A) Reserve Bank of India (RBI)

B) Securities and Exchange Board of India (SEBI)

C) Ministry of Finance

D) Ministry of Commerce and Industry

Answer: B) Securities and Exchange Board of India (SEBI)

Q4) What is a Sensex index?

A) An index of the 30 top stocks on the NSE

B) An index of the 30 top stocks on the BSE

C) An index of the 50 top sectors on the NSE

D) An index of the 50 top sectors on the BSE

Answer: B) An index of the 30 top stocks on the BSE

Q5) Who is eligible to invest in the stock market in India?

A) Only Indian citizens

B) Only foreign citizens

C) Both Indian and foreign citizens

D) Only individuals with a net worth of over 50 lakh rupees

Answer: C) Both Indian and foreign citizens

Q6) What is a blue chip stock?

A) A stock that is considered to be a high risk investment

B) A stock that is considered to be a low risk investment

C) A stock that is considered to be a mid-risk investment

D) A stock that is considered to be a high-quality, stable investment with a strong track record of consistent performance and dividends

Answer: D) A stock that is considered to be a high-quality, stable investment with a strong track record of consistent performance and dividends

Q7) Can an investor sell their stocks before the expiration date?

A) No, stocks must be held until expiration

B) Yes, but only through a broker

C) Yes, but only through the stock exchange

D) Yes, stocks can be sold at any time through a broker or the stock exchange

Answer: D) Yes, stocks can be sold at any time through a broker or the stock exchange

Q8) How often do stock prices change in the Indian stock market?

A) Daily

B) Weekly

C) Monthly

D) Yearly

Answer: A) Daily

Q9) What is a bull market?

A) A market with declining stock prices

B) A market with stable stock prices

C) A market with increasing stock prices

D) A market with fluctuating stock prices

Answer: C) A market with increasing stock prices

Q10) What is a bear market?

A) A market with declining stock prices

B) A market with stable stock prices

C) A market with increasing stock prices

D) A market with fluctuating stock prices

Answer: A) A market with declining stock prices

Q11) How is the stock market in India affected by economic conditions?

A) It is not affected by economic conditions

B) It is only slightly affected by economic conditions

C) It is moderately affected by economic conditions

D) It is heavily affected by economic conditions

Answer: D) It is heavily affected by economic conditions

Q12) What is the role of a brokerage firm in the stock market?

A) To buy and sell stocks on behalf of clients

B) To provide financial advice to clients

C) To act as a mediator between buyers and sellers

D) All of the above

Answer: D) All of the above

Q13) What is a dividend?

A) A payment made by a company to its shareholders out of its profits

B) A payment made by a company to its shareholders out of its debt

C) A payment made by a company to its shareholders out of its revenues

D) A payment made by a company to its shareholders out of its expenses

Answer: A) A payment made by a company to its shareholders out of its profits

Q14) What is a stock split?

A) A process where a company divides its existing shares into smaller denominations

B) A process where a company combines its existing shares into larger denominations

C) A process where a company buys back its own shares

D) A process where a company sells new shares to the public

Answer: A) A process where a company divides its existing shares into smaller denominations

Q15) What is a mutual fund?

A) A type of investment that pools money from multiple investors and uses it to buy a diversified portfolio of stocks, bonds, or other securities

B) A type of investment that pools money from multiple investors and uses it to buy a single stock or bond

C) A type of investment that pools money from multiple investors and uses it to buy real estate

D) A type of investment that pools money from multiple investors and uses it to start a business

Answer: A) A type of investment that pools money from multiple investors and uses it to buy a diversified portfolio of stocks, bonds, or other securities

Q16) What is an IPO?

A) An initial public offering of a company’s stocks to the public for the first time

B) A secondary public offering of a company’s stocks to the public

C) A private offering of a company’s stocks to select investors

D) A public offering of a company’s bonds to the public

Answer: A) An initial public offering of a company’s stocks to the public for the first time

Q17) What is a stock market bubble?

A) A rapid increase in stock prices that is not supported by the company’s fundamental value

B) A rapid decrease in stock prices that is not supported by the company’s fundamental value

C) A rapid increase in stock prices that is supported by the company’s fundamental value

D) A rapid decrease in stock prices that is supported by the company’s fundamental value

Answer: A) A rapid increase in stock prices that is not supported by the company’s fundamental value

Q18) What is a bull trap?

A) A situation where investors mistakenly believe that a bull market is continuing and buy stocks, only to see the market turn bearish and prices fall

B) A situation where investors mistakenly believe that a bear market is continuing and sell stocks, only to see the market turn bullish and prices rise

C) A situation where investors mistakenly believe that a bull market is continuing and sell stocks, only to see the market turn bullish and prices rise

D) A situation where investors mistakenly believe that a bear market is continuing and buy stocks, only to see the market turn bearish and prices fall

Answer: A) A situation where investors mistakenly believe that a bull market is continuing and buy stocks, only to see the market turn bearish and prices fall

Q19) What is a bear trap?

A) A situation where investors mistakenly believe that a bear market is continuing and sell stocks, only to see the market turn bullish and prices rise

B) A situation where investors mistakenly believe that a bull market is continuing and buy stocks, only to see the market turn bearish and prices fall

C) A situation where investors mistakenly believe that a bear market is continuing and buy stocks, only to see the market turn bearish and prices fall

D) A situation where investors mistakenly believe that a bull market is continuing and sell stocks, only to see the market turn bullish and prices rise

Answer: A) A situation where investors mistakenly believe that a bear market is continuing and sell stocks, only to see the market turn bullish and prices rise

Q20) What is a stock market crash?

A) A sudden and dramatic drop in stock prices, often caused by a major event or economic crisis

B) A sudden and dramatic rise in stock prices, often caused by a major event or economic crisis

C) A gradual and steady drop in stock prices, often caused by a major event or economic crisis

D) A gradual and steady rise in stock prices, often caused by a major event or economic crisis

Answer: A) A sudden and dramatic drop in stock prices, often caused by a major event or economic crisis