# The Ultimate Stock Market Fractions Quiz

1 min
Image: Raimund Koch/Getty Images

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.
When did the New York Stock Exchange come into existence?
1776
1792
In the year 1792, the New York Stock Exchange came into existence.
1864

Which European country was a model for the New York Stock Exchange?
Italy
France
Spain
Spain was a model for the New York Stock Exchange.

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

What was a real?
Spanish currency
A real was a Spanish silver dollar. The real was divided into two, four or eight pieces.
Italian currency
German currency

Why was the real divided into eight pieces?
Spaniards used their fingers to count.
Spaniards used their fingers to count, minus the thumbs.
Historians do not know the reason.
The Queen of Spain had eight husbands.

In 1792, on what currency was the U.S. dollar's value based?
Spanish real
The dollar's value was based on the Spanish real.
English pound
Italian lira

What is the base of the decimal system?
base five
base eight
base 10
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.

When stocks were priced using fractions, what was the smallest possible change in stock price?
fourth
eighth
The smallest change in stock price was an eighth of a dollar.
tenth

What happened in 1997 to stock trading?
Fractions were converted to decimals.
In 1997, with the signing of the Common Cents Pricing Act, fractions were converted to decimals.
Decimals were converted to fractions.

When did decimalization of stocks begin?
2000
The decimalization of the stock market began in August of 2000.
2002
2005

smallest change in value
A stock spread is the smallest amount of money a stock can change in value.
shares available
shares earnings per share

How will decimalization change stock trading?
easier to calculate
Decimalization will make stock prices easier to calculate.
more confusing

How does decimalization change the stock spread?
increase to one dollar
decrease to 10 cents
decrease to one cent
Stock spreads may be as small as one penny.

How did stock spreads change after fractions were converted to decimals?
easier to calculate
harder to calculate
no change