Market Basics | FinTrex

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Question 1 of 10

What does a share normally represent?

An ownership interest in a companyA guaranteed bank depositA tax billA fixed insurance premium

Question 2 of 10

What is a bond?

A debt instrument issued by a borrowerA company logoA type of cash registerA guaranteed equity return

Question 3 of 10

What is market liquidity?

How easily an asset can be traded without a large price impactThe amount of rain near an exchangeThe dividend tax rateThe age of a company

Question 4 of 10

What is an index fund designed to do?

Track a defined index or rules-based methodologyGuarantee profitAvoid holding securitiesPredict every market move

Question 5 of 10

What often happens to the price of an existing fixed-rate bond when market yields rise sharply?

It may fallIt must riseIt becomes a shareIt is automatically cancelled

Question 6 of 10

What is a dividend?

A distribution a company may pay to shareholdersA guaranteed return from every shareA bond maturity dateA broker password

Question 7 of 10

What is the bid-ask spread?

The difference between quoted buying and selling pricesA tax deductionA company's revenueAn interest guarantee

Question 8 of 10

What does market capitalisation usually measure?

Share price multiplied by shares outstandingAnnual profit onlyCash in the bank onlyNumber of employees

Question 9 of 10

What is yield?

A measure of income relative to price or value, depending on the instrumentA guarantee of total returnThe same as share priceA measure of trading volume only

Question 10 of 10

Which statement about market prices is correct?

They can change as information, expectations, supply and demand changeThey move only once per yearThey are guaranteed by the exchangeThey always reflect intrinsic value perfectly