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Stocks and bonds 101 Trivia Quiz

The world of finance is often cluttered with technical jargon. This quiz will help you understand what the Wall Street buzz is all about.

A multiple-choice quiz by cfrancois. Estimated time: 3 mins.

Author
cfrancois

Time
3 mins

Type
Multiple Choice

Quiz #
323,645

Updated
Dec 03 21

# Qns
10

Difficulty
Average

Avg Score
7 / 10

Plays
570

One at a Time - Single Page - Timed Game

Question 1 of 10

1. Who is known as the "Oracle of Omaha"? Hint

Warren Buffett

Warren Beaty

Bill Gates

Ty Warren

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Question 2 of 10

2. What two statistics are used for a P/E ratio? Hint

Stock Price and Earnings

Stock Price and Equity Price

Property and Equipment

Sales and Earnings

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Question 3 of 10

3. Which of these asset classes is generally viewed as the most risky? Hint

Bonds

Equities

Foreign debt

T-bills

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Question 4 of 10

4. Microsoft has which nickname on Wall Street? Hint

Mister Softee

It has no nickname

Gates baby

The silicon valley

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Question 5 of 10

5. Which is not a U.S. listed stock exchange or index? Hint

NYSE

Big 50

Pink Sheets

S&P 500

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Question 6 of 10

6. What is a common way to analyze a stock or company? Hint

Fundamental analysis

Both of these

Technical analysis

Neither of these

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Question 7 of 10

7. Which of the following is not a good source of information on a company's health? Hint

Company web-site

Wall Street Journal

Company annual report

Your neighbor's seven-year-old kid

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Question 8 of 10

8. Which statement best describes a cyclical company? Hint

Company earnings ebb and flow with economic cycles

Company produces bicycles

Company has high turnover

Company changes business lines to capture market share

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Question 9 of 10

9. What term has been coined for the recession of 2007-2009? Hint

The Great Depression

The Great Recession

The 30s part deux

Armageddon

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Question 10 of 10

10. The Laffer Curve is considered which of the following? Hint

Demand Side Economics

Supply Side Economics

A Joke

Asset Class

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Quiz Answer Key and Fun Facts

1. Who is known as the "Oracle of Omaha"?

Answer: Warren Buffett

Highly regarded as one of the most successful investors, Warren Buffett brought his fundamental investing philosophies to create the powerhouse Berkshire Hathaway.

2. What two statistics are used for a P/E ratio?

Answer: Stock Price and Earnings

Stock price divided by earnings provides a snapshot of how "expensive" the current price is relative to the profitability of the company. This ratio is used for comparison purposes and is often relative to competitors and the general stock market. Property and equipment are on the balance sheet. Stock price and equity price are the same thing! Sales and earnings provide margin analysis.

3. Which of these asset classes is generally viewed as the most risky?

Answer: Equities

Equities are considered the most risky due to their lack of seniority and security enjoyed by bonds. Foreign debt is another way of saying foreign bonds and are also senior. T-bills are government treasuries and viewed as essentially riskless.

4. Microsoft has which nickname on Wall Street?

Answer: Mister Softee

Mister Softee is represented by its ticker symbol MSFT.

5. Which is not a U.S. listed stock exchange or index?

Answer: Big 50

NYSE is the New York stock exchange. Pink Sheets are small or "over the counter" companies. S&P 500 is an index, comprising 500 U.S. listed companies.

6. What is a common way to analyze a stock or company?

Answer: Both of these

Both technical and fundamental analyses are used to understand the valuation metrics and movement of a company's stock price and company health.

7. Which of the following is not a good source of information on a company's health?

Answer: Your neighbor's seven-year-old kid

Children are usually not the best place for investment information.

8. Which statement best describes a cyclical company?

Answer: Company earnings ebb and flow with economic cycles

A cyclical company will have earnings that vary with the general economic environment. Recessions will generally hamper earning, whereas times of prosperity enhance earnings.

9. What term has been coined for the recession of 2007-2009?

Answer: The Great Recession

The economic downturn of 2007-2009 has been considered the worst recession since the Great Depression of the 1930s. It has been labeled "The Great Recession".

10. The Laffer Curve is considered which of the following?

Answer: Supply Side Economics

Laffer Curve is supply side economics. It basic principal is to tax the things you don't want and subsidize the things you want more of.

Source: Author cfrancois

This quiz was reviewed by FunTrivia editor stedman before going online.
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