Stock Market Basics Review

Stock Market Basics Review

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15 Questions

1. 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 down. B It will go up.

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

3. The total current market value of all outstanding shares of a company.
A market capitalization B beta
C volume D dividend

4. Pepsi, Google, Coach, and Nike. What do these companies have in common?
A They are examples of failing companies that you wouldn’t want to invest in. B You can buy stock in them in our stock market game.
C They are all companies with such expensive stock that you won’t be able to afford to invest in them in our stock market game.
D They are all companies that have declined to be on the stock market, you can’t buy stock in them.

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

6. You can buy stock in any company in the world.
A False, a company is only listed on the stock exchange if it wants to be.
B True, all companies are required to offer stock.

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

8. The name for a part of a business that is bought and sold on the stock market is:
A Marker B Stocker
C Share D Part

9. 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 down. B It is likely to go up.

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

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

12. What is the stock market?
A A special type of grocery store that sells stocks. B A type of farmers market where people buy and sell food.
C A type of bank that gives out loans to new businesses. D A place where parts of businesses are bought and sold.

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

14. A company that sells stock on the stock market is a
A stock market B market capitalization
C private company D public company

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

Answer Key

1. a 2. a 3. a 4. b
5. a 6. a 7. a 8. c
9. b 10. d 11. d 12. d
13. d 14. d 15. c

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