In anticipation of Bill Frisco’s upcoming financial class, we created a quiz to test your knowledge about little-known stock market facts.
1. Where is the oldest stock exchange in the world?
A. Barcelona, Spain.
B. Hamburg, Germany.
C. Toulouse, France.
D. Antwerp, Belgium.
2. Where was the first stock exchange in the United States?
A. New York, N.Y.
B. Philadelphia, PA.
C. Washington, D.C.
D. Boston, MA.
3. The founders of the New York Stock Exchange took inspiration from which country’s stock market?
A. Great Britain.
4. What is the name for the method of communications used by stock traders frantically running around a trading floor and using hand signals?
A. Verbal auction.
B. Open outcry.
C. Hand dealing.
5. Which of the following is an example of a defensive stock?
A. A weapons manufacturer.
B. A utility company.
C. An auto manufacturer.
6. What does it mean when a trader flashes four fingers parallel to the floor, palm out?
A. Sell four shares.
B. Sell nine shares.
C. Buy four shares.
D. Buy nine shares.
7. Which company is NOT a member of the Dow Jones Industrial Average?
8. How many companies are in the Dow Jones Industrial Average?
1. D. The oldest stock exchange in the world began in Antwerp, Belgium, in 1460.
2. B. The first stock exchange in the United States, opened in Philadelphia, in 1790.
3. D. The value of the dollar had been based on the Spanish real, so the NYSE founders looked to Spain for inspiration for their stock market.. The Spanish real is also the reason for all the fractional stock prices in the NYSE.
4. B. Open outcry is the way transactions are communicated using shouting and hand signals.
5. B. A defensive stock is named as such because its value doesn’t fluctuate much. A good example of defensive stock would be utility stocks.
6. B. Palm out means sell. Four fingers at a 90-degree angle indicates nine while four upright fingers signals four.
7. B. Amazon is not a member of the Dow Jones Industrial Average.
8. B. 30 is the correct answer.