Our general knowledge trivia questions and answers are a fun way to learn some random facts about geography, history, politics, sports, science, technology, music, food, wild life, entertainment, cultures or just about anything.
Put on your thinking cap and test how much you really know about the world around you. Have fun!
What does the term "hedging" mean in finance?
Maximizing profits in the stock market
Investing in high-risk stocks
Reducing risk by taking opposite positions in related markets
Short selling shares
Investing in real estate
Correct answer is C
Hedging involves taking opposite positions in related markets to reduce the risk of adverse price movements.
What does the term "portfolio" refer to?
The tax on stock trading
A collection of investments held by an individual or institution
The profit from a single stock
The annual revenue of a company
The list of shareholders
Correct answer is B
A portfolio is a collection of financial investments like stocks, bonds, and other assets.
What is a bond in financial terms?
An ownership stake in a company
A fixed-income investment representing a loan
A derivative product
A form of government tax
A stock option
Correct answer is B
A bond is a fixed-income investment where the investor loans money to an entity, which borrows the funds for a defined period.
What does "short selling" mean?
Buying stocks at a low price
Selling stocks you do not own
Holding stocks for a long period
Selling shares at a higher price
Investing in small-cap companies
Correct answer is B
Short selling involves selling stocks that you do not own, expecting to buy them back at a lower price.
What does the term "liquidity" mean in finance?
The ease of converting an asset into cash
The profit from an investment
The total debt of a company
The number of shares in the market
The volatility of a stock
Correct answer is A
Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price.