Stock Market Module 2 Quiz – The H University

What is short selling in the stock market? *

Buying stocks with the hope their price will increase

Borrowing stocks and selling them with the expectation that their price will decrease so they can be repurchased at a lower price

Holding stocks for the long term

What do the "equity" and "cash" figures represent in a trading app? *

Equity represents the total value of stocks owned, and cash represents available funds to trade

Equity represents only the cash balance, and cash represents the stock value

Equity represents your profits, and cash represents your losses

Which types of shares can provide a currency hedge for investors in Pakistan? *

Shares of companies with international business operations that earn revenue in foreign currencies

Only government bonds provide currency hedge

Only stocks listed in the domestic market offer a currency hedge

What is the significance of the Price-Earnings Ratio (P/E Ratio) for investors? *

It is used to measure a company's earnings relative to its stock price, helping investors determine if a stock is overvalued or undervalued

It shows the total revenue generated by a company

It reflects the company's market share in comparison to competitors

What are Shariah-compliant shares? *

Shares of companies that operate in accordance with Islamic laws, ensuring no involvement in prohibited activities like alcohol or gambling

Shares of companies that are listed in the stock market for a long period

Shares that only pay dividends and avoid growth investments