What is the primary function of the stock market?

To regulate company financials To facilitate transactions between market participants To set interest rates To issue new company shares

What typically happens to a stock price when a company announces positive news?

The price remains unchanged The price decreases The price increases The price fluctuates randomly

What is the term for the period during which an individual holds a stock?

Trading cycle Investment horizon Holding period Maturity date

What does CAGR stand for and when is it used?

Compound Annual Growth Rate, used for comparing investments over multiple years Capital Asset Growth Rate, used for short-term investments Cumulative Average Growth Rate, used for analyzing industry trends Current Asset Growth Ratio, used for assessing company valuation

What distinguishes a trader from an investor in the stock market?

Traders focus on short-term gains, while investors have a long-term perspective Investors focus on dividends, while traders prefer capital appreciation Traders only buy stocks, while investors can also sell stocks short Investors analyze company fundamentals, while traders rely on technical analysis