Commerce Division of Securities  
 

FINANCIAL QUIZ
For High School Students


  1. The New York Stock Exchange is located in _________________.


  2. Where is the NASDAQ stock market located?

a. Nasdaq, PA
b. London
c. Cyberspace


  3. True or False:   Internet e-mail or chat rooms are generally a reliable and good source of information and stock tips for investors.


  4. Which of these factors is most important in making the stock market go up?

a. The President's economic policy
b. The team that wins the Super Bowl
c. General economic conditions
d. A new software product from Microsoft


  5. Overall, which is the best source of investment news and information?

a. Your parents
b. Anonymous e-mail
c. A stock market chat room
d. The Wall Street Journal


  6. How old do you have to be to own stock?

a. None of the below
b. 12 years old
c. 18 years old
d. 21 years old
e. A college graduate


  7. If you are in your 20's, based on historical performance, which is the best long-term investment?

a. A bank certificate of deposit
b. An antique car
c. A house
d. A growth mutual fund


  8. A higher rate of return on an investment means greater risk.

a. True
b. False
c. Don't know


  9. When an investor diversifies his/her investments, does the risk of losing money increase or decrease?

a. Increase
b. Decrease
c. Don't know


  10. If you bought a mutual fund through a bank and it lost money, will bank insurance cover your losses?

a. Yes
b. No
c. Don't know


  11. Can a day trader trade at night?

a. Yes
b. No
c. Sometimes


  12. In the financial world, what does SEC stand for?

a. Southeastern Conference
b. Securities & Exchange Commission
c. Sales Equal Commission
d. Sales & Equity Committee


  13. If you're thinking about becoming a stockbroker, what do you have to do?

a. You need to pass a state and industry exam
b. You need a web page
c. You need to know someone on Wall Street
d. You need to be able to talk really fast


  14. How do you check out the background of a broker?

a. Go to their house and interview their neighbors
b. Ask for references and talk to your friends
c. Call your state securities regulator
d. Call the Commodity Futures Trading Commission
e. Ask for references, talk to your friends, AND call your state securities regulator


  15. If you want personalized investment advice, where are you most likely to get it?

a. An on-line brokerage firm
b. Full service brokerage firm
c. Discount brokerage firm



Answer Key To Quiz
For High School Students


   1.   New York
   2.   C
   3.   False
   4.   C
   5.   D
   6.   A
   7.   D
   8.   True
   9.   B
   10.  B
   11.  B
   12.  B
   13.  A
   14.  E
   15.  B