

Understanding the Stock Market
Flashcard
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Other
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University
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Practice Problem
•
Hard
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10 questions
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1.
FLASHCARD QUESTION
Front
What is a stock?
Back
A stock is a share in the ownership of a company.
2.
FLASHCARD QUESTION
Front
How does the stock market work?
Back
The stock market facilitates the buying and selling of shares in publicly traded companies.
3.
FLASHCARD QUESTION
Front
What is the difference between a stock and a bond?
Back
Stocks represent ownership; bonds represent debt.
4.
FLASHCARD QUESTION
Front
What is a stock exchange?
Back
A stock exchange is a marketplace for buying and selling stocks.
5.
FLASHCARD QUESTION
Front
What does it mean to buy shares in a company?
Back
To buy shares in a company means to purchase ownership in that company.
6.
FLASHCARD QUESTION
Front
What is market capitalization?
Back
Market capitalization is the total market value of a company's outstanding shares of stock.
7.
FLASHCARD QUESTION
Front
What are dividends?
Back
Dividends are payments made to shareholders from a company's profits.
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