GBR Online Investing Quiz

The Graziadio Business Report Online Investing Quiz

How knowledgeable are you concerning online investing? This quiz was developed by GBR Managing Editor Frieda Gehlen and Professor Chuck Harlow, D.B.A., who co-authored the article on day trading in this issue. Good luck!

GBR Online Investing Quiz

1.	To the extent that day traders rely on any type of market or stock analysis, they are more likely to use:
	a) Fundamental analysis b) Technical analysis c) Tea leaves

2. A true day trader will close out the account at the end of each trading day and hold no stocks over night regardless of whether he or she has won or lost that day.

a) True
b) False

3. Day traders are online traders, but not all online traders are day traders.

a) True
b) False

4. The advent of online trading has resulted in...

a) Less volatility
b) Greater volatility
c) No difference in volatility
d) What's volatility?

5. The typical day trader would be more apt to trade in shares of Fortune 100 companies than in the shares of new, small start-up companies such as those related to the Internet.

a) True
b) False

6. After an initial rush by brokerage firms to offer online trading, the momentum has moved the other way and the number of companies offering this service is declining.

a) True
b) False

7. Most people who have tried day trading have not stayed with it more than six months at the longest either because they have lost their money or they don't like the pressure.

a) True
b) False

8. Most of the gain made by traders in the past few years is more an artifact of the long bull market in which most listed shares have gone up than it is the result of brilliant stock selection.

a) True
b) False

9. Trading based on an analysis of volatility patterns, such as the analysis that many day traders use, assumes that:

a) The market has patterns of action based on psychology and past behavior that can be anticipated and therefore exploited.
b) Markets are exceptionally efficient.
c) Company fundamentals do not influence a company's stock price.
d) All of the above.

10. All online traders, including day traders, must pass a test and become licensed by the SEC before they are allowed to trade in their own accounts.

a) True
b) False

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2.	A true day trader will close out the account at the end of each trading day and hold no stocks over night regardless of whether he or she has won or lost that day.
	a) True b) False

3.	Day traders are online traders, but not all online traders are day traders.
	a) True b) False

4.	The advent of online trading has resulted in...
	a) Less volatility b) Greater volatility c) No difference in volatility d) What's volatility?

5.	The typical day trader would be more apt to trade in shares of Fortune 100 companies than in the shares of new, small start-up companies such as those related to the Internet.
	a) True b) False

6.	After an initial rush by brokerage firms to offer online trading, the momentum has moved the other way and the number of companies offering this service is declining.
	a) True b) False

7.	Most people who have tried day trading have not stayed with it more than six months at the longest either because they have lost their money or they don't like the pressure.
	a) True b) False

8.	Most of the gain made by traders in the past few years is more an artifact of the long bull market in which most listed shares have gone up than it is the result of brilliant stock selection.
	a) True b) False

9.	Trading based on an analysis of volatility patterns, such as the analysis that many day traders use, assumes that:
	a) The market has patterns of action based on psychology and past behavior that can be anticipated and therefore exploited. b) Markets are exceptionally efficient. c) Company fundamentals do not influence a company's stock price. d) All of the above.

10.	All online traders, including day traders, must pass a test and become licensed by the SEC before they are allowed to trade in their own accounts.
	a) True b) False