1. Directions

You will read passages on the topic and then answer questions about them. You may find vocabulary at the end of the test. Read the questions carefully before choosing the correct answers.

2. Questions of the test

Question 1. Which of the following is NOT a stock market?
A) New York Stock Exchange (NYSE)
B) London Stock Exchange (LSE)
C) Shanghai Stock Exchange (SSE)
D) Paris Stock Exchange (PSE)

Question 2. What is an initial public offering (IPO)?
A) The process of issuing new shares of stock to the public
B) The process of buying and selling securities through a brokerage account
C) A payment made by a company to its shareholders
D) A stake in a company held by an investor

Question 3. What is the role of a broker in a stock market?
A) To act as an intermediary between buyers and sellers
B) To buy and sell securities on behalf of investors
C) To manage a company's IPO
D) To serve as a shareholder in a company

Question 4. Which of the following can affect the price of a security on a stock market?
A) The overall performance of the company
B) Economic and political events
C) Supply and demand
D) All of the above

Question 5. Which of the following is NOT a way for an investor to earn a return on their investment in a stock market?
A) Dividends
B) Appreciation of the stock price
C) Selling securities for a profit
D) Borrowing money from the brokerage