6
QuizMultiple Choice

Buying and Selling Stock

Question 6 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

What is a stock index?

Answer
A
The average change in a stock’s price over a given period.
B
An indicator of market strength based on the prices of several specific stocks.
C
A listing of all stocks available in a specific market.
D
The current number of stocks in your portfolio.

Explanation

A stock index tracks the prices of a selected group of stocks to indicate how a market or segment of the market is performing. Therefore, the correct choice is “An indicator of market strength based on the prices of several specific stocks.”

AI-written and checked against the verified answer.

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