1. THE STOCK EXCHANGE QUIZ

2. 1. Fill in the missing words.
Before you start dealing in all kinds of s______________, you must be aware of the risks you take. There are two main types of capital markets: e______________, for the trading of company shares, and b______________, for the trading of the debt of companies and governments.

3. 1. Fill in the missing words.
Before you start dealing in all kinds of securities, you must be aware of the risks you take. There are two main types of capital markets: equity, for the trading of company shares, and bond, for the trading of the debt of companies and governments.

4. 2. Fill in the missing words.
B______________ are long-term loans that earn a fixed rate of interest. S______________ pay dividends and enable the bearer to own a part of the company. Dividends may or may not be paid depending on the p______________ of the company.

5. 2. Fill in the missing words.
Bonds are long-term loans that earn a fixed rate of interest. Shares pay dividends and enable the bearer to own a part of the company. Dividends may or may not be paid depending on the profitability of the company.

6. 3. Fill in the missing words.
Companies need money to grow and create new jobs. That is why they go public and issue and sell shares on the p_____________ market for the first time. This is called f______________ or initial public offering (IPO). The market place for trading in securities that are not new issues is called s______________ market.

7. 3. Fill in the missing words.
Companies need money to grow and create new jobs. That is why they go public and issue and sell shares on the primary market for the first time. This is called flotation or initial public offering (IPO). The market place for trading in securities that are not new issues is called secondary market.

8. 4. TRUE (T) or FALSE (F)?
Equity is the capital that the company has from loans. T/F

9. 4. TRUE (T) or FALSE (F)?
Equity is the capital that the company has from loans. FALSE

10. 5. TRUE (T) or FALSE (F)?
Both bonds and stocks are securities. T/F

11. 5. TRUE (T) or FALSE (F)?
Both bonds and stocks are securities. TRUE

12. 6. YES or NO?
Can private limited companies sell their shares on the stock exchange? YES/NO

13. 6. YES or NO?
Can private limited companies sell their shares on the stock exchange? NO

14. 7. Which banks might be engaged in the dealings on the stock exchange?
_________________________

15. 7. Which banks might be engaged in the dealings on the stock exchange?
INVESTMENT OR MERCHANT BANKS

16. 8. YES or NO?
Are blue-chip shares likely to be significantly affected by bad economic conditions? YES/NO

17. 8. YES or NO?
Are blue-chip shares likely to be significantly affected by bad economic conditions? NO

18. 9. If you want to make securities available for people to buy, do you ISSUE or UNDERWRITE them?
______________________

19. 9. If you want to make securities available for people to buy, do you ISSUE or UNDERWRITE them?

20. 10. TRUE (T) or FALSE (F)?
IPOs are often issued by smaller, younger companies seeking the capital to expand, but are not done by large privately owned companies looking to become publicly traded. T/F

21. 10. TRUE (T) or FALSE (F)?
IPOs are often issued by smaller, younger companies seeking the capital to expand, but are not done by large privately owned companies looking to become publicly traded. FALSE

22. 11. What do brokers or investment firms charge for their brokerage services?
A margin
B commission
C interest

23. 11. What do brokers or investment firms charge for their brokerage services?
A margin
B commission
C interest

24. 12. TRUE (T) or FALSE (F)?
Securities Exchange Commission is the British agency responsible for stock market regulation. T/F

25. 12. TRUE (T) or FALSE (F)?
Securities Exchange Commission is the British agency responsible for stock market regulation. FALSE

26. 13. A group of companies who agree to set the price of something they produce at a fixed level in order to limit competition and increase their own profits is called:
A multinational
B monopoly
C cartel

27. 13. A group of companies who agree to set the price of something they produce at a fixed level in order to limit competition and increase their own profits is called:
A multinational
B monopoly
C cartel

28. 14. What is the plural of INDEX?
__________________

29. 14. What is the plural of INDEX?
INDEXES or INDICES

30. 15. What's the name of the missing index?
________________ the Tokyo Stock
Exchange
________________ the Paris Stock Exchange
________________ the London Stock Exchange
________________ the Frankfurt Stock Exchange
________________ the New York Stock Exchange
________________ the Zagreb Stock Exchange

31. 15. What's the name of the missing index?
Nikkei - the Tokyo Stock Exchange
CAC - the Paris Stock Exchange
FTSE - the London Stock Exchange
DAX - the Frankfurt Stock Exchange
Dow Jones (Industrial Average) - the New York Stock Exchange
Crobex - the Zagreb Stock Exchange

32. 16. TRUE (T) or FALSE (F)?
Wall Street exclusively refers to the physical location of the New York Stock exchange. T/F

33. 16. TRUE (T) or FALSE (F)?
Wall Street exclusively refers to the physical location of the New York Stock exchange. FALSE

34. 17. YES or NO?
Are hedge funds safer than mutual funds? YES/NO

35. 17. YES or NO?
Are hedge funds safer than mutual funds? NO

36. 18 What do you call financial organizations such as pension funds and insurance companies which own most of the shares of all leading companies (over 60% and rising)?
A institutional investors
B brokerage firms
C mutual funds

37. 18 What do you call financial organizations such as pension funds and insurance companies which own most of the shares of all leading companies (over 60% and rising)?
A institutional investors
B brokerage firms
C mutual funds

38. 19. They trade with a higher-than-average risk, in return for a higher-than-average profit potential, anticipating future price movements. Who are they?
A stockbrokers
B market makers
C speculators

39. 19. They trade with a higher-than-average risk, in return for a higher-than-average profit potential, anticipating future price movements. Who are they?
A stockbrokers
B market makers
C speculators

40. 20. Which of the following are not speculators in the stock market?
A bulls
B bears
C wolves

41. 20. Which of the following are not speculators in the stock market?
A bulls
B bears
C wolves