Here are a few questions for you, to test your knowledge of the stock market.
The first one, of course, is, what is the Buttonwood Tree?
Why do some stocks trade on the New York Stock Exchange, others on the American and still others on NASDAQ?
What does NASDAQ stand for?
It is said the Apple is holding $175 billion in cash, more than any other company. Why are they holding all this cash instead of giving some of it to shareholders or using it to buy other companies?
Apple is a relatively high-priced stock. Why don’t they split five- or 10-for-one? The same could be asked of Google.
What is the highest-priced stock on the New York Stock Exchange?
Who built it?
What made the crash of October 1929 worse than any other? Hint: How was margin used then and now.
What is margin?
Do you know of a more-modern disaster involving margin? Hint: a famous oil man lost so much in one or two days that he had to hock his Rolex watch.
They say there are two elements that drive the stock market, or any other market for that matter. What are they? Real Estate exemplified these phenomena, and we’re still trying to climb out of it.
What was a recent example of a “new issue” that, for a while at least, went sour?
If you hear of a stock going public for the first time and you can’t get any, it’s often known as a “hot issue.” If, suddenly, on the day of the offering, you are offered all the stock you want, should you take some? Why or why not?
They say that bulls make money and bears make money, but pigs get slaughtered. What were the bears doing?
If you’re earning 6 percent a year compounded, how many years will it take before your money doubles? That can be figured by the Rule of –?
More seriously, it is said that the national debt of almost $17 trillion will be a tremendous burden to our grandchildren. Why? If it’s any help, I don’t agree with that diagnosis at all.
Here’s a political question: It’s commonly believed that the stock market behaves better when the Democrats control government. True or false?
Why has the current Federal Reserve’s policy of keeping short-term interest rates near zero done so little to bring down unemployment?
I think that’s enough for one week. Answers next week.
Bud Stevenson, a stockbroker, lives in Fairfield. Reach him at Bsteven254@aol.com.