qm u1c1 stock market

qm u1c1 stock market

by BRETT HOWIE

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​Sometimes a person wants to start a company...but lacks the money. They can get people to invest in their good ideas...for a part of the company.

​They can list it on the stock market and the value of the company can go up and down.

​Now the investors own a piece of the pie (company)...Yummm!

​But what happens if bad things happen? Rats!!!!

​You need to pay attention to the news...what should you do?

​Sell...and sell fast...let someone else buy it from you.

​Before the price falls.

​But if you don't pay attention...the price may drop...and your piece of the pie shrinks.

​When people retire they may take some of their money and buy stocks and bonds to live off of.

​Investing in stocks is risky...they can go up and down.

​Just like a baloon.

​You need to do your research

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​Please work with the person next to you. Please do not get up and walk around the room. Discuss the charts and come up with the appropriate answers.

​Write down your answers.

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Multiple Choice

Stocks represent ownership in a corporation.

• TRUE

• FALSE

Multiple Choice

A holder or owner of stock in a company or corporation.

• stock market

• shareholder

• portfolio

• industry

Multiple Choice

People who own stocks are guaranteed a return on the money they have invested in stocks.

• TRUE

• FALSE

Multiple Choice

One way stockholders make money is by selling their stock for more money than they paid for it.

• TRUE

• FALSE

Multiple Choice

Why does a company issue stock?

• to brag about their profits

• to attract money

• to gain publicity

• because it is required by law

Multiple Choice

What is the stock market?

• A type of farmers market where people buy and sell food.

• A place where parts of businesses are bought and sold.

• A special type of grocery store that sells stocks.

• A type of bank that gives out loans to new businesses.

Multiple Choice

The name for a part of a business that is bought and sold on the stock market is:

• Part

• Marker

• Stocker

• Share

Multiple Choice

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?

• It is likely to go up.

• It is likely to go down.