Investing in stock futures is an excellent method to hedge your investments so that market fluctuations don't lead to major financial losses. You won't be immune to market ups and downs, but you will be shielded to some extent. That said, investing in stock futures is risky business. Take the time to learn all about it with our very informative quiz.
A contract to trade a specified amount of stock at a specified price on a specified future date is called:
a stock future
a stock contract
a stock agreement
When you buy stocks that are traded on the stock exchange, you earn money when the price of your stock:
stays the same
When you own stock in a corporation, you can earn _____ on a regular basis.
The basic positions on stock futures are called:
both of the above
Who might issue a margin call?
The idea behind _____ is to protect yourself against market downturns by taking opposite positions on the same investment.
A _____ is when you go both short and long on the same stock future with two different delivery dates.
An_____ involves going long and short on two different stock futures in related markets.
A _____ is when you enter a futures contract to buy shares in two competing companies.
matched pair spread
unmatched pair spread
matched single spread
When you _____ a stock, you use a small amount of money to buy a large amount of stock.
When you buy traditional stocks on margin, you use your _____ as collateral for the loan.
Since your basically borrowing money to invest in stock futures when buying on margin, you run the risk of:
losing your entire investment
owing more money
both of the above
Which United States law reintroduced the trading of single stock futures?
the Commodity Futures Modernization Act
the Stock Futures Modernization Act
the Stock Market Modernization Act
Individual investors in single stock futures are known as:
What do we call a large group of investors who pool their money in the same portfolio?