Explanation : A stock represents a slice of a company's capital.
Question 2 / 12
What moves a stock's price day to day?
Explanation : More buyers than sellers pushes price up, and vice versa.
Question 3 / 12
What is the difference between investing and trading?
Explanation : Investing = hold long; trading = profit from the swings.
Question 4 / 12
What does "going long" mean?
Explanation : Going long = buy low to sell higher.
Question 5 / 12
On a long position, the maximum loss is…
Explanation : At worst price hits zero: you lose your stake, no more.
Question 6 / 12
What does "going short" mean?
Explanation : You sell a borrowed asset to buy it back cheaper.
Question 7 / 12
Why is shorting riskier?
Explanation : A price can rise without limit, so can the loss.
Question 8 / 12
The bid is…
Explanation : The bid is what buyers offer; you sell at the bid.
Question 9 / 12
When you buy at market, you pay…
Explanation : Buying at market = pay the ask, slightly above the bid.
Question 10 / 12
The spread is…
Explanation : Spread = ask - bid. A cost paid on every round trip.
Question 11 / 12
A tight spread often indicates…
Explanation : The more liquid, the tighter the spread.
Question 12 / 12
Volume measures…
Explanation : Volume is the quantity that changed hands.
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