Do You Know The Stock Market Game Rules?

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| By Kzacharski

Kzacharski

Community Contributor

Quizzes Created: 1 | Total Attempts: 1,514

Questions: 16 | Attempts: 1,514 | Updated: Mar 22, 2023

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Do You Know The Stock Market Game Rules? - Quiz

Answer the following questions about the rules of the Stock Market Exchange Game.

Questions and Answers

1.

The Stock Market Game pays dividends.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement "The Stock Market Game pays dividends" is true. Dividends are payments made by a company to its shareholders as a distribution of profits. In the context of the Stock Market Game, it means that participants in the game receive dividends as a way to simulate real-world stock market activities. This allows players to understand the concept of dividends and their impact on investment returns.

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2.

Each team begins with $_______________ to invest.

Correct Answer
100,000.00
100,000
100000

Explanation
Each team begins with a starting capital of $100,000. This amount is represented in different formats such as $100,000.00, 100,000, and 100000. All these formats indicate the same value of $100,000.

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4
3.

Transactions entered with a limit price will not be held past the initial posting. This applies to both the End of Day or Real Time Games.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Transactions entered with a limit price will not be held past the initial posting. This means that once a transaction is entered with a limit price, it will either be executed immediately at that price or not at all. It will not be held or delayed for any reason, regardless of whether it is the End of Day or Real Time Games. Therefore, the statement is true.

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4.

Trades entered on a Friday at 6:30pm will receive the closing price for Monday (for End of Day Game).
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Trades entered on a Friday at 6:30pm will receive the closing price for Monday because the market is closed over the weekend. Therefore, any trades made after the market closes on Friday will be executed at the next available price, which is the closing price on Monday when the market reopens.

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5.

Mutual funds have ticker symbols like stocks, but they are 5 letters long and end in an X.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Mutual funds indeed have ticker symbols like stocks, but there is a specific format for mutual fund ticker symbols. These symbols are typically 5 letters long and end in an X. This is done to differentiate mutual funds from individual stocks and make it easier for investors to identify and trade mutual funds in the market. Therefore, the statement "Mutual funds have ticker symbols like stocks, but they are 5 letters long and end in an X" is true.

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6.

All buy orders must be a minimum of 50 shares.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The statement is false because it states that all buy orders must be a minimum of 50 shares, which is not true. Buy orders can be for any number of shares, including less than 50.

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1
0
7.

A broker's fee of _____% is charged for all buy and sell orders.

Correct Answer
2
2%

Explanation
The broker's fee for all buy and sell orders is 2% of the total amount.

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4
8.

For a team "going on margin" (borrowing on the equity in your account), a _____% fee is charged for money borrowed.

Correct Answer
7
7%

Explanation
The correct answer is 7%. When a team goes on margin and borrows money against the equity in their account, a fee of 7% is charged for the borrowed amount. This fee is calculated as a percentage of the borrowed money.

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4
9.

SMG does not permit buying stocks that trade below $____ per share.

Correct Answer
5.00
5

Explanation
SMG does not permit buying stocks that trade below $5.00 per share. The answer "5.00" is correct because it specifically states the exact dollar amount that is not allowed for buying stocks. The answer "5" is also correct because it represents the whole number equivalent of $5.00. Both answers accurately convey the restriction imposed by SMG on purchasing stocks below a certain price per share.

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4
10.

Cash balances (money not yet spent) will be credited at an annual rate of ____%.
- A.
  
  5%
- B.
  
  7%
- C.
  
  2%
- D.
  
  10%
Correct Answer
A. 5%

Explanation
Cash balances will be credited at an annual rate of 5%. This means that any money that has not been spent will earn an interest rate of 5% per year. This could be in a savings account or any other type of investment that earns interest. By crediting cash balances at a rate of 5%, the individual or organization will be able to earn additional income on their money that is not yet spent.

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11.

Teams can only enter trades between 9:00AM and 4:00PM Eastern Standard Time.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Teams can enter trades between 9:00AM and 4:00PM Eastern Standard Time. This statement is false because teams can enter trades outside of this time frame as well.

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12.

A team will not be listed in regional rankings until their first transaction is entered successfully.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
This statement implies that a team needs to have their first transaction entered successfully in order to be included in the regional rankings. This suggests that the regional rankings are based on the team's transaction history, and teams will not be listed until they have at least one successful transaction. Therefore, the answer is true.

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13.

If a team sells 200 shares of their Intel stock at $32 per share, they will be charged a broker's fee of $____ for the transaction.

Correct Answer
128.00
128

Explanation
The team will be charged a broker's fee of $128.00 for the transaction.

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4
14.

Teams must liquidate their portfolios at the end of the Game (liquidate means selling their stock to convert it back into cash).
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Teams do not have to liquidate their portfolios at the end of the game. Liquidating means selling their stocks to convert them into cash, but this is not a requirement. Teams may choose to hold onto their stocks or make other investment decisions at the end of the game. Therefore, the statement is false.

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15.

Teams can only trade common and preferred stock on the New York Stock Exchange, Nasdaq Stock Market, and the American Stock Exchange.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
This statement is false. Teams cannot trade stocks on the New York Stock Exchange, Nasdaq Stock Market, and the American Stock Exchange. These exchanges are for individual investors and institutional investors to trade stocks. Teams typically do not have the legal authority or structure to engage in stock trading.

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16.

Interest earned (and/or owed) is posted to the portfolio daily.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The statement "Interest earned (and/or owed) is posted to the portfolio daily" is incorrect. In reality, interest earned or owed is typically not posted to a portfolio on a daily basis. Instead, it is usually calculated and added or deducted at the end of a specified period, such as monthly or annually. Therefore, the correct answer is False.

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Feb 26, 2009

Quiz Created by
Kzacharski

Do You Know The Stock Market Game Rules?

The Stock Market Game pays dividends.

Each team begins with $_______________ to invest.

Transactions entered with a limit price will not be held past the initial posting. This applies to both the End of Day or Real Time Games.

Trades entered on a Friday at 6:30pm will receive the closing price for Monday (for End of Day Game).

Mutual funds have ticker symbols like stocks, but they are 5 letters long and end in an X.

All buy orders must be a minimum of 50 shares.

A broker's fee of _____% is charged for all buy and sell orders.

For a team "going on margin" (borrowing on the equity in your account), a _____% fee is charged for money borrowed.

SMG does not permit buying stocks that trade below $____ per share.

Cash balances (money not yet spent) will be credited at an annual rate of ____%.

Teams can only enter trades between 9:00AM and 4:00PM Eastern Standard Time.

A team will not be listed in regional rankings until their first transaction is entered successfully.

If a team sells 200 shares of their Intel stock at $32 per share, they will be charged a broker's fee of $____ for the transaction.

Teams must liquidate their portfolios at the end of the Game (liquidate means selling their stock to convert it back into cash).

Teams can only trade common and preferred stock on the New York Stock Exchange, Nasdaq Stock Market, and the American Stock Exchange.

Interest earned (and/or owed) is posted to the portfolio daily.