Investing IQ

Written by ksmith1

Do you have what it takes to successfully manage your own portfolio?

Take our FREE Stock Market IQ test and find out.

The higher your Stock Market IQ, the greater your chances of creating wealth through investment.

This is brought to you by the creators of Investing101, where you can learn stock trading and practice investing 100% risk free.

1 of 15) Which of the four investments has shown the highest returns historically?

Bonds

Cash

Stocks

Real Estate

2 of 15) Which feature do Exchange-Trade Funds (ETFs) have in common with mutual funds?

They are tied to an index

One investment purchases a group of assets

They can be traded at any time

They are both deliberately confusing

3 of 15) How is the term Beta used to understand stock data?

It measures the volatility of a stock

It indicates the total shares outstanding multiplied by the current stock price

It measures the change in stock price compared to yesterday's closing price

It is a test to see if a stock will sell in the stock market

4 of 15) What is the Sharpe Ratio Index?

A measure of risk that helps you select the right stocks

A way to spread out your stock sales

A pen that helps you calculate stock prices

A conservative way to purchase and sell stocks

5 of 15) What does technical analysis look at for investment purposes?

The price at which the stock trades

A company's revenue growth

A company's competition

A company's profit margins

6 of 15) What happens when an investor over-diversifies?

They make more money

They drive their money manager crazy

They create high-risk scenarios

They are spread too thin

7 of 15) What is implied volatility?

A measure of how risk could occur

A risk probability equation

Something that only impacts option writers

A calculation that compares the current market price and theoretical future value

8 of 15) What does the put versus call interest do?

Indicate who is making money and losing money in options

Offer a precise mathematical formula for pricing options

Provide a measure of banking interest rates

Measure overall market sentiment

9 of 15) What partially defines a Bull Market?

Stimulating energy drinks

Lack of investor confidence

Low stock prices

A positive outlook about the current business cycle

10 of 15) What are the dangers in choosing a short selling strategy?

You may have to come up with money if share prices increase

The bank holding your mortgage may not agree

You may end up with very high losses

You may receive a margin call order.

11 of 15) What is the best course of action when faced with two stocks, one gaining value, the other losing value?

Decide how to proceed based on your gut instincts

Sell the winning stock, take the profit, and wait for the losing stock to regain its value

Become a deer in the headlights and do nothing

Sell the losing stock and hold onto the winning stock

12 of 15) What are Trailing Stop Orders?

An immediate order to sell a security

An order that falls behind the actions on the stock market

An order that comes with a set of conditions

An order that sets a distance between the market price and a stop order

13 of 15) What is a Head and Shoulders pattern?

A bearish signal that prices will fall after the pattern formation is done

A pattern that is not often correct

A pattern for identifying stocks that are about to rise

A bullish signal about prices.

14 of 15) What does arbitrage involve?

Trading one stock for another very quickly

Price similarities in two different markets

A strategy that is risky and may not result in any profit

Price differences across two or more markets for the same investment

15 of 15) What can be learned from Warren Buffet's approach to investing?

Use a buy and hold strategy

Pay attention to rumors and pure market price indicators

Skip the research

Sell, sell, sell

Please enter your email address below and click "Submit" to get you Quiz results.

Enter Your Email

Time's up

Read These Next

What Are Stock Exchanges?
What is a Certificate of Deposit?

Comments are closed.

Best Investing Tools for Beginners
1. Get the Best Stock Recommendations:
  For the last 5 years The Motley Fool has averaged over 200% return on their stock picks. New Subscribers can get the next 12 months for $99.
2. Open a Brokerage Account and Get Up To $1,700 in Free Stock:
  Robinhood is the best brokerage platform for new investors. You only need $10 to open an account. Best of all, they will give you a stock valued between $5 and $250 when you open an new account. Get ready to make your first real stock trade and Learn how to get $1,700 free stock with Robinhood.
3. Get 5 Stocks Set to Double by Zacks:
  Zacks is another trusted resource of stocks ratings. Get Zacks 5 Stocks Set to Double for FREE.

Investing IQ

Read These Next

Best Investing Tools for Beginners