Trivia on Stocks (Lesson 1)
Test your knowledge about stocks with this fun and informative 10-question trivia. Learn the basics of stocks, the potential for profit, the importance of diversification, and essential advice for young investors.
1. What are stocks?
Investment options for bonds
Tiny pieces of ownership in companies
A type of currency used for trading
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2. When you buy a stock, what do you become?
A part-owner of a company
A customer of the company
A lender to the company
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3. Why do people invest in stocks?
To become famous as shareholders
To support their favorite companies
To potentially earn a profit as the stock's value rises
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4. What is the potential risk of owning stocks?
Loss of ownership in the company
The stock price may go up too high
The stock price may go down, resulting in a loss
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5. How can you reduce risk when investing in stocks?
By buying shares from just one company
By owning different stocks from various companies
By only investing in high-risk stocks
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6. What are dividends in relation to stocks?
A type of tax imposed on stockholders
A reward for owning stocks, paid by companies to shareholders
The price of a stock when it was first issued
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7. Where are stocks traded?
At the local supermarket
On the stock market
At the company's office
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8. What is the importance of time for young investors in stocks?
Young investors have more time to lose money on risky stocks
Young investors should wait until they are older to invest in stocks
Young investors can benefit from compounding and long-term
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9. What does diversification mean in stock investing?
Focusing on investing in just one industry
Spreading investments across different types of assets and companies
Investing in stocks from the same company
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10. What advice should young investors remember about investing in stocks?
Avoid investing in stocks altogether
Be patient and do thorough research before making decisions
Invest all their savings in just one stock they like
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