Here are some MCQs on Capital Market Terminology
1. What does the term “IPO” stand for in relation to the capital market?
a) Initial Public Offering
b) Investment Portfolio Organizing
c) International Property Ownership
d) Income_Profit Opportunity
2. What is a “blue-chip” stock?
a) A low-priced stock
b) A stock of a new company
c) A stock of a well-established company with a solid reputation
d) A stock of a financial institution
3. What does the term “dividend” refer to in the capital market?
a) The process of selling securities on the secondary market
b) The profit share distributed to shareholders of a company
c) The debt owed by a company to its shareholders
d) The risk associated with investing in a particular stock
4. What is a “bull market”?
a) A market with high demand and rising prices
b) A market with low demand and falling prices
c) A market characterized by high volatility
d) A market with no price movement
5. What is an “exchange-traded fund” (ETF)?
a) A fund managed by a financial institution
b) A fund that invests in real estate properties
c) A fund that tracks the performance of a specific index or sector
d) A fund that only invests in government bonds
