Review: Stock Market Basics
Directions: Read the questions below. If you don't know the answer, select the dark text to the right to reveal the answer.
If you are a part owner of a publicly traded company, it means you own this? Stocks
If you loan money to the government or a company, and later receive that money back with interest, you have just invested in what? Bonds
Instead of placing all your eggs in one basket or all of your money with one company, many investors will spread their money around to multiple companies and multiple types of investments. What is this term generally called? Mutual Funds
This is what you receive at the end of a quarter when a company sends you a check in the mail that represents a portain of the company profits. Dividend
Where is the largest stock exchange in the world located? New York City
How many stocks are there on the Dow Jones Industrial Average? 30
A stock whose price doesn't change due to the ups and downs of the economy is known as what kind of stock? Defensive Stock
When the economy is good, what do we call the market? Bull Market
When the economy is bad, what do we call the market? Bear Market
Which federal agency is responsible for regulating the stock market? SEC (Security Exchange Commission)
What are two reasons you can't buy stock in a company. 1) The company is owned by another company. 2) The company is a private company.
If you look up your stock and it has a red number by it, what does that mean about the stock? It has gone down in value/price that day.
If you look up your stock and it has a green number by it, what does that mean about the stock? It has gone up in value/price that day.
What is an IPO? The term IPO stands for Initial Public Offering. It is a stock that is being publicly traded for the first time.
If you loan money to the government or a company, and later receive that money back with interest, you have just invested in what? Bonds
Instead of placing all your eggs in one basket or all of your money with one company, many investors will spread their money around to multiple companies and multiple types of investments. What is this term generally called? Mutual Funds
This is what you receive at the end of a quarter when a company sends you a check in the mail that represents a portain of the company profits. Dividend
Where is the largest stock exchange in the world located? New York City
How many stocks are there on the Dow Jones Industrial Average? 30
A stock whose price doesn't change due to the ups and downs of the economy is known as what kind of stock? Defensive Stock
When the economy is good, what do we call the market? Bull Market
When the economy is bad, what do we call the market? Bear Market
Which federal agency is responsible for regulating the stock market? SEC (Security Exchange Commission)
What are two reasons you can't buy stock in a company. 1) The company is owned by another company. 2) The company is a private company.
If you look up your stock and it has a red number by it, what does that mean about the stock? It has gone down in value/price that day.
If you look up your stock and it has a green number by it, what does that mean about the stock? It has gone up in value/price that day.
What is an IPO? The term IPO stands for Initial Public Offering. It is a stock that is being publicly traded for the first time.