Financial Assets and Market Concepts Quiz
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Questions and Answers

What type of financial asset do shares of common stock represent?

  • Options
  • Futures
  • 401(k)s
  • Equities (correct)

Which implication is a direct result of the Efficient Market Hypothesis?

  • Bargain stock pricing
  • Vesting
  • Correct pricing (correct)
  • Stock analysis

What is the market value of a single mutual fund share called?

  • NAV (correct)
  • NET CHG
  • DIV
  • EMH

In a 401(k) plan, what does vesting refer to?

<p>The length of time you have to work for a company before its contribution goes with you (A)</p> Signup and view all the answers

What is a securities exchange?

<p>The physical place where stocks are bought and sold (C)</p> Signup and view all the answers

What does the Dow Jones Industrial Average monitor?

<p>Changes in 30 representative stocks (B)</p> Signup and view all the answers

'Bull market' refers to a market with prices doing what over an extended period?

<p>Moving up (D)</p> Signup and view all the answers

What is the primary implication of the Efficient Market Hypothesis?

<p>Correct pricing (A)</p> Signup and view all the answers

What do you call the market value of a single mutual fund share?

<p>NAV (C)</p> Signup and view all the answers

What is the vesting period in a 401(k) plan?

<p>The length of time before employer contributions go with you (D)</p> Signup and view all the answers

Where are stocks bought and sold in a securities exchange?

<p>In physical locations (B)</p> Signup and view all the answers

What is the Dow Jones Industrial Average based on?

<p>Changes in 30 representative stocks (B)</p> Signup and view all the answers

What defines a bull market?

<p>'Bulls' pushing prices up for months or years (B)</p> Signup and view all the answers

'Equities' in financial terms represent what type of assets?

<p>'Ownership shares in corporations' (D)</p> Signup and view all the answers

What makes a 401(k) plan a tax-advantaged retirement account?

<p>Employee contributions being tax-deferred (C)</p> Signup and view all the answers

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