Stock Market IQ Test

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

Real Estate

Stocks

None

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

They are both deliberately confusing

They are tied to an index

One investment purchases a group of assets

They can be traded at any time

None

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

It measures the volatility of a stock

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

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

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

None

4 of 15) What is the Sharpe Ratio Index?

A pen that helps you calculate stock prices

A conservative way to purchase and sell stocks

A measure of risk that helps you select the right stocks

A way to spread out your stock sales

None

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

A company's profit margins

A company's revenue growth

The price at which the stock trades

A company's competition

None

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

They drive their money manager crazy

They make more money

They create high-risk scenarios

They are spread too thin

None

7 of 15) What is implied volatility?

Something that only impacts option writers

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

A measure of how risk could occur

A risk probability equation

None

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

Measure overall market sentiment

Provide a measure of banking interest rates

None

9 of 15) What partially defines a Bull Market?

A positive outlook about the current business cycle

Low stock prices

Stimulating energy drinks

Lack of investor confidence

None

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

You may receive a margin call order

You may end up with very high losses

The bank holding your mortgage may not agree

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

None

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 losing stock and hold onto the winning stock

Become a deer in the headlights and do nothing

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

None

12 of 15) What are Trailing Stop Orders?

An order that comes with a set of conditions

An immediate order to sell a security

An order that falls behind the actions on the stock market

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

None

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

A pattern for identifying stocks that are about to rise

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

A bullish signal about prices.

A pattern that is not often correct

None

14 of 15) What does arbitrage involve?

Price similarities in two different markets

Price differences across two or more markets for the same investment

Trading one stock for another very quickly

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

None

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

Skip the research

Sell, sell, sell

Pay attention to rumors and pure market price indicators

Use a buy and hold strategy

None

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

Enter Your Email

Time's up

Best Investing Tools for Beginners
Ranking of Stock Newsletters by 2023 Performance

#1. Motley Fool Stock Advisor

Winner of Best Stock Newsletter of 2023
& lifetime return of 602% vs S&P's 145%.
See their performance in our Stock Advisor review.
Get your 60% off Coupon

#2. Everlasting Stocks

A close 2^nd for 2023; but not the track record of Stock Advisor.
Learn more in our Everlasting Stocks review.
Try it for $198

#3. Alpha Picks

Our winner for 2022 (those picks are up now 82%) and strong in 2023.
See their picks in our Alpha Picks review.
Save 50%; now only $99

SEE OUR FULL RANKING AND ANALYSIS OF THE TOP STOCK NEWSLETTERS OF 2023
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 $79.
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.

Stock Market IQ Test

Best Investing Tools for Beginners

Ranking of Stock Newsletters by 2023 Performance