We love finance and we love trivia. You can test your finance trivia knowledge with the following questions.

This is Part 6 in our ongoing financial trivia series. Scroll down below to find the answers.

 

Q1. Blue chip stocks are called blue chip stocks because blue is related to:

a. Dividends    b. Growth    c. Long term    d. Gambling

 

Q2. Who of the following was an employee of the world’s first company?

a. James Cook   b.Abel Tasman  c.Anthony Van Diemen  d. Joseph Banks

 

Quiz answers are below.

 

 

Answers

Q1. Blue chip stocks are called blue chip stocks because blue is related to

Answer d. Gambling.

In American history blue chips were typically the highest value chips available in the early casinos (they remain so in Monte Carlo and this may be related to the historic royal term ‘blue blood’ denoting ‘higher’ breeding). In finance ‘blue chip’ has come to denote well established, large companies that have a long history of sustainable earnings and dividend growth. In Australia they include the Big 4 banks, the major diversified financials and the resource giants.

 

Q2. Who of the following was an employee of the world’s first company?

Answer b & c – Tasman and Van Diemen.

The world’s first joint stock company in 1602 was the Dutch East India Company. Van Diemen joined the company in 1617, was appointed as governor of the Dutch East Indies (Indonesia) in 1636 and hired a fellow Dutchman Abel Tasman to do a spot of exploring in the great unknown south of Indonesia. The Dutch later exported the concept of the company (and their highly planned city grid street structure) to their fledgling colony of New Amsterdam (renamed by the British as New York).

 

 

We hope you enjoyed doing our finance quiz as much as we did writing it.  Let us know what you think or let us know if you have some great finance trivia questions!

As always, make smart financial decisions.