Portfolio Survey Form

1. What does the term "IPO" stand for in the context of the stock market?

a) International Portfolio Offering b) Initial Public Offering c) Investment Property Option d) Insider Purchase Opportunity

2. Which term represents the ownership of a company's stock?

a) Equity b) Debt c) Bond d) Dividend

3. What is the stock market index that represents the performance of 500 large companies listed on stock exchanges in the United States?

a) Dow Jones Industrial Average b) NASDAQ Composite c) S&P 500 d) Russell 2000

4. When you buy a stock, you become a:

a) Lender to the company b) Owner of the company c) Employee of the company d) Debtor to the company

5. What is the term for a market condition where stock prices are falling consistently?

a) Bull market b) Bear market c) Bullish trend d) Correction

6. Which of the following investments is considered the riskiest in the stock market?

a) Blue-chip stocks b) Government bonds c) Penny stocks d) Preferred stocks

7. Dividends are typically paid out to:

a) Bondholders b) Shareholders c) Banks d) Brokers

8. What does the P/E ratio (Price-to-Earnings ratio) indicate about a stock?

a) How much the stock has gained in the last year b) The price of the stock compared to its book value c) The company's profitability relative to its stock price d) The company's debt relative to its equity

9. What does the term "market order" mean in stock trading?

a) An order to buy or sell a stock at a specific price b) An order to trade stocks only when the market is closed c) An order to hold a stock for the long term d) An order to cancel a previous trade

10. Which regulatory body oversees and enforces securities laws in the United States?

a) SEC (Securities and Exchange Commission) b) IRS (Internal Revenue Service) c) FDIC (Federal Deposit Insurance Corporation) d) NYSE (New York Stock Exchange)