Unit 3 Lesson 3 Investing Review

Front

What is a stock?

Back

An investment option that allows you to own a small piece of a company.

Front

When reading a stock quote, which metric gives the best idea of the total value of the company? Options: The stock ticker symbol, The price change of the stock, quoted as a percentage, The market cap, The stock’s opening and closing price for that day

Back

The market cap

Front

Which of the following is TRUE about a stock split? Stock splits impact the overall value of a company, Stock splits decrease the number of shares you own, Stock splits indicate that a company is doing poorly, Stock splits make a stock more accessible to a greater number of investors

Back

Stock splits make a stock more accessible to a greater number of investors

Front

The market value of a company's outstanding shares calculated by multiplying the current share price by the number of shares outstanding is the definition of:

Back

market capitalization

Front

A market where shares in corporations are bought and sold through an organized system.

Back

Stock Exchange

Front

Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.

Back

asset allocation

Front

The second largest stock exchange in the world behind the NYSE.

Back

NASDAQ

Front

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company.

Back

stock

Front

A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace (like stocks, bonds, and cash).

Back

asset class

Front

The world's largest stock exchange, physically located in New York City.

Back

New York Stock Exchange (NYSE)