Quiz: The Ultimate Stock Market Fractions Quiz
The Ultimate Stock Market Fractions Quiz
By: Staff
Image: refer to hsw

About This Quiz

If fractions scare you, you don't have to worry about judging stock values, since stocks are now priced in decimals. Knowing how stocks are priced and traded can help you make better investment decisions. Take this quiz to see how much you know why the stock market changed from fractions to decimals.

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When did the New York Stock Exchange come into existence?

In the year 1792, the New York Stock Exchange came into existence.

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Which European country was a model for the New York Stock Exchange?

Spain was a model for the New York Stock Exchange.

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Who signed the Buttonwood Agreement?

In 1792, 24 American bankers, brokers and merchants signed the agreement which established the New York Stock Exchange.

A real was a Spanish silver dollar. The real was divided into two, four or eight pieces.

Spaniards used their fingers to count, minus the thumbs.

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In 1792, on what currency was the U.S. dollar's value based?

The dollar's value was based on the Spanish real.

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What is the base of the decimal system?

The decimal system is based on units of 10. When using fingers as an early calculator, this system, unlike the Spanish system, included the thumbs.

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When stocks were priced using fractions, what was the smallest possible change in stock price?

The smallest change in stock price was an eighth of a dollar.

In 1997, with the signing of the Common Cents Pricing Act, fractions were converted to decimals.

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When did decimalization of stocks begin?

The decimalization of the stock market began in August of 2000.

A stock spread is the smallest amount of money a stock can change in value.

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How will decimalization change stock trading?

Decimalization will make stock prices easier to calculate.

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How does decimalization change the stock spread?

Stock spreads may be as small as one penny.

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How did stock spreads change after fractions were converted to decimals?

They became much easier to calculate, especially after some spreads had spread to sixty-fourths.

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What decimal is equivalent to three-eighths?

The decimal equivalent of three-eighths is 0.375.

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