10 Questions
Which of the following is an example of a capital gain?
Buying 100 shares of Company XYZ at $100.00 a share and selling it for $125.00 a share
Which of the following is an example of a dividend?
Company XYZ declaring an annual dividend of PhP10.00 a share
What is an IPO?
An initial public offering, a way for a company to raise growth money for expansion
What is a downside of an IPO?
Giving up control of the company
What factors can greatly affect the stock market?
Economics, social, and political factors
What is a capital gain?
A profit made when selling stock at a higher price than the purchase price.
Can you provide an example of a capital gain?
If you buy 100 shares of Company XYZ at $100.00 a share and sell them for $125.00 a share, you've realized a capital gain of $25.00 a share, or $2,500.00.
What are dividends?
Dividends are the distribution of profits from a company to the stockholders.
Can you give an example of dividends?
If Company XYZ declares an annual dividend of PhP10.00 a share and you own 100 shares, you'll earn PhP1000.00 a year, or PhP250.00 paid each quarter.
What is an IPO?
IPO stands for Initial Public Offering, which is a great way for companies to raise growth money for expansion, but it also means giving up control of the company.
Test your knowledge on stocks basics and capital gains with this quiz. Learn about the concept of capital gains and how they are calculated when selling stocks. Challenge yourself with questions on stock investments and profits.
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