STOCK MARKET PART 8

Stock Market

Part 1
30 Questions
NAME :
DATE :

1. As long as you are 18 years old and have some money, you can invest it in the stock market.
A False B True

2.
Represents shares of ownership in a company.
A stock B industry
C portfolio D volume

3. A system in which individuals are free to own, trade, and use things in order to make a profit
A bear market B capitalism
C stock exchange D bull market

4. A time when stock prices are RISING is called
A transaction B bear market
C bull market

5.
A company's profit or earnings divided equally among all the shares investors own.
A market capitalization B industry
C volume D earnings per share

6. Stocks represent ownership in a corporation.
A FALSE B TRUE

7. The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important?
A It tells Americans how much debt the country is in. B It tells Americans how many jobs are out there.
C It provides a snapshot of how the stock market and the US economy is doing.
D It helps economists predict when a stock market crash will happen.

8. A company owned by families or a small number of investors and do not issue stock to the public.
A public company B private company
C portfolio D industry

9.
The total number of shares traded in a given day.
A profit B beta
C loss D volume

10. A person who is licensed to buy and sell stock
A investor B shareholder
C stockbroker

11.
To put money to use by purchasing something offering potential profitable returns as interest, income, or appreciation in value.
A index B stock
C portfolio D invest

12. Why would a company need to issue stock?
A To show customers that it's successful. B To stop the government from regulating it.
C To increase its' customer base. D To raise money.

13.
A sum of money paid to shareholders of a corporation out of its earnings.
A index B invest
C dividend D profit

14.
Groups of companies that are related based on their primary products or services.
A public company B stock
C index D industry

15. Over the course of the day, the head of Apple's company is imprisoned for not paying his taxes. What do you think will happen to Apple's stock?
A It will go up. B It will go down.

16. Apple is releasing a new iPhone that is predicted to change the cell phone world. Millions of people have pre-ordered it.
What do you think will happen to their stock?
A It is likely to go up. B It is likely to go down.

17.
The total holdings of stock by a financial institution or a private investor.
A index B portfolio
C industry D stock market

18. A time when stock prices are falling
A transaction B bull market
C bear market

19.
A company that sells stock on the stock market.
A public company B market capitalization
C private company D stock market

20.
The highest price and lowest price of a stock over a 52 week period.
A volume B 52 week range
C profit D beta

21. to buy a variety of stocks
A diversify B risk
C portfolio D profit

22. You have $250 that you are willing to invest in Apple's stock. If Apple's stock is selling for $113.05 a share, how many shares could you buy?
A 2 B 4
C 3 D 1

23.
When assets or stocks are sold for a price lower than the original purchase price.
A volume B loss
C profit D risk

24.
The financial benefit when the revenue of a company exceeds expenses, costs, and taxes.
A loss B profit
C volume D portfolio

25.
The possibility of losing some or all of a particiular investment.
A industry B index
C risk D profit

26.
A holder or owner of stock in a company or corporation.
A shareholder B portfolio
C stock market D industry

27. One way stockholders make money is by selling their stock for more money than they paid for it.
A TRUE B FALSE

28.
A group of large companies that stockbrokers look at to gauge how the market is doing as
a whole.
A portfolio B index
C shareholder D industry

29. People who own stocks are guaranteed a return on the money they have invested in stocks.
A FALSE B TRUE

30.
A particular market where stocks and bonds are traded.
A market capitalization B stock market
C shareholder D portfolio

Answer Key
1. b 2. a 3. b 4. c
5. d 6. b 7. c 8. b
9. d 10. c 11. d 12. d
13. c 14. d 15. b 16. a
17. b 18. c 19. a 20. b
21. a 22. a 23. b 24. b
25. c 26. a 27. a 28. b
29. a 30. b

Part 2

20 Questions
NAME :
DATE :

1. What is a stock broker?
A A machine that keeps track of the prices of stocks B Anyone who owns stock
C Someone who loses all of his/her money after making bad investments
D Someone who is licensed to buy and sell stock on a stock exchange

2. What is the primary reason for a company to issue stock?
A To raise money to grow the company B To increase greater awareness of the company
C To distribute the risk of bankruptcy across more investors
D The stocks help investors earn a higher rate of return

3. It is free to buy stocks
A False B True

4. A strong market when prices are going up.
A Diversification B Bull Market
C Bear Market D Equities

5. A company owned by families or a small number of investors and do not issue stock to the public.
A industry B portfolio
C public company D private company

6. Common stock ownership gives investors
A guaranteed dividends B voting rights in shareholder meetings
C lower risk with a higher rate of return

7. Ownership in a corporation; represents a claim on part of the corporation’s assets and earnings.
A stocks B Mutual funds
C bonds

8. What is it called when the stock market rises for a period of time?
A stock market B growth market
C bear market D bull market

9. The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important?
A It tells Americans how many jobs are out there. B It tells Americans how much debt the country is in.
C It provides a snapshot of how the stock market and the US economy is doing.
D It helps economists predict when a stock market crash will happen.

10. A group of thirty stocks that measure the performance of the stock market and mainly focuses on one market.
A Dow Jones Industrial Average B Standard and Poors 500
C National Association of Securities Dealers Automated Quotation
D New York Stock Exchange

11.
A sum of money paid to shareholders of a corporation out of its earnings.
A dividend B index
C profit D invest

12. People who own stocks are guaranteed a return on the money they have invested in stocks.
A FALSE B TRUE

13. Who regulates stock market exchanges?
A Christian Garcia B New York stock exchange
C securities and exchange commission D congress

14. The two major stock exchanges are
A NYSE & American B NASDAQ & DJIA
C Dow Jones Industrial Average & S&P 500 D NASDAQ & NYSE

15.
The total holdings of stock by a financial institution or a private investor.
A stock market B industry
C portfolio D index

16. Which type of shareholder gets dividends first?
A Common stock B Treasury stock
C Preferred stock

17. You loan money to a corporation or government, and they pay you back with interest
A Stock B Mutual Funds
C Bonds

18. People who own stocks are guaranteed a return on the money they have invested in stocks.
A FALSE B TRUE

19. A poor market when prices are going down.
A Diversification B Bull Market
C Equities D Bear Market

20.
A company that sells stock on the stock market.
A private company B stock market
C market capitalization D public company

Answer Key
1. d 2. a 3. a 4. b
5. d 6. b 7. a 8. d
9. c 10. a 11. a 12. a
13. c 14. d 15. c 16. c
17. c 18. a 19. d 20. d

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