8-12 Chapter 8

True or False - A company's price just increased 50% overnight. It is definitely in a Mania

	TRUE
	FALSE

True or False - After a mania, there is always a crash that brings the stock's price back down to where it started

	TRUE
	FALSE

True or False - There can be a large spike in trading volume on a stock without it being in a mania or crash

	TRUE
	FALSE

Which of the following would cause a Bubble to form?

	Investors selling off real estate and buying stocks to earn higher returns
	A single company releasing news about a revolutionary new product
	A crash in another industry causing investors to lose confidence
	All of the above

True or False - Very few day traders earn any profit.

	TRUE
	FALSE

What can you see with a Level 2 quote?

	All outstanding bid and ask prices
	The current day's trading volume
	The current EPS of the stock
	The stock's insider transactions

If you do not think a stock's price has any good reason to be moving, which type of investor do you expect to be trading it?

	Day Trader
	Swing Trader
	GARP Trader
	ESG Trader

Swing Trading is based on a strong understanding of

	Fundamental analysis
	Technical analysis
	Economic Analysis
	All of the above

Which trader would most likely have a portfolio of just one stock?

	Day Trader
	Swing Trader
	GARP Trader
	ESG Trader

Which of the following investors would purposefully buy into stocks entering a "mania"?

	Short Squeezer
	Buy and Hold investor
	GARP Investor
	Swing Trader

True or False - Day traders rarely use limit orders - it requires lightning-fast reflexes and to always be at the computer.

	TRUE
	FALSE

True or False - Buy and Hold traders rarely use stop orders - even if a stock they own crashes, they keep holding it

	TRUE
	FALSE

True or False - Pump and Dump schemes are legal, and come into play frequently with a Short Squeeze

	TRUE
	FALSE

Pink Sheets are considered

	Penny Stocks
	Growth Stocks
	ESG Stocks
	Worthless

True or False - If you believe a stock is currently in a "Pump and Dump" scheme, it is legal to short-sell it to earn a profit

	TRUE
	FALSE

True or False - Penny stocks never raise in value enough to be listed on major stock exchanges. They are always high-risk scams.

	TRUE
	FALSE

True or False - The most famous Buy and Hold investors are able to consistently beat the market

	TRUE
	FALSE

A "Buy and "Hold" investor and a GARP investor focused their portfolio in the same stock over a 2-year span. What is the biggest reason why the Buy and Hold investor would have greater profit?

	GARP investing does not try to out-perform other investment types
	GARP likely had more short-term buy and sell transactions, accumulating capital gains taxes
	Buy and Hold investors do more research on the market timing of their purchasing decisions
	All of the above

GARP Investing focuses mostly on

	Fundamental analysis
	Technical analysis
	Economic Analysis
	All of the above

True or False - GARP Analysis is a useful tool in comparing stocks from different industries

	TRUE
	FALSE

Which of the following investors are limited to only making trades at certain times of the year?

	Swing Traders
	Insider Traders
	GARP Traders
	Buy and Hold Traders

Which of the following stocks would be the most likely to undergo a "short squeeze"?

	A strong company that just had an embarrassing news story published about its CEO
	A stable utilities company that does not have much price movement, but can go up and down 2% over the course of a week
	A company that has been steadily losing customers and profits for a long time
	None of the above

True or False - It is perfectly legal for large investment banks to coordinate together on a short squeeze

	TRUE
	FALSE

After a successful Short Squeeze, the stock's price settles

	Above what it was before the squeeze
	Below where it was before the squeeze
	Around the same price as it was before the squeeze

Which of the following is a risk behind a coordinated Short Squeeze?

	Other investors always ready to "take their money and run"
	The short sellers simply waiting until the squeezers move on, and not covering their shorts
	Both of these
	Neither of these

An "Altcoin" is

	The second largest cryptocurrency
	An alternative way to purchase stocks
	Any cryptocurrency other than Bitcoin
	A cryptocurrency tied to a specific index

True or False - Cryptocurrency investing would earn a high ESG rating

	TRUE
	FALSE

True or False - ESG Investing had its starts with large investment firms demanding social change from major companies

	TRUE
	FALSE

True or False - ESG Investing has proven that "Responsible Investing" can match, or even beat, the market as a whole

	TRUE
	FALSE

ESG Investing should be considered a part of

	Fundamental Analysis
	Technical Analysis
	Economic Analysis
	All of the above