CM Un7Wk1 - Stocks & Stock Market

Stocks & Stock Market

By Chip Krolik

Multiple Choice

Why would a company need to issue stock?  

• To increase its' customer base.
• To raise money.
• To stop the government from regulating it.
• To show customers that it's successful.
• None of these

Multiple Choice

Manny has recently inherited a large sum of money. He wants to invest this money but also wants to minimize his overall risk. Which investment strategy should he use that divides investment funds across a variety of assets?

• Asset Allocation

• Averaging Down

• Diversification

• Dollar Cost Averaging

Multiple Choice

What is a bear market?

• The practice of making high-risk investments with borrowed money in hopes of getting a BIG return

• When stock prices in general steadily rise for a period of time

• When stock prices in general steadily fall for a period of time

• The option to sell shares of stock at a specified time in the future

Multiple Choice

What does the term "stock" refer to in finance?

• A type of currency

• Ownership in a company

• A government-issued bond

• A type of insurance policy

Multiple Choice

Which of the following factors can influence the price of a stock?

• Political events

• Economic indicators

• Company performance

• All of the above

Multiple Choice

What does the acronym "NYSE" stand for in the context of finance?

• New York Securities Exchange

• National Yield and Stock Exchange

• New York Stock Exchange

• National Yield and Securities Exchange

Multiple Choice

What is the function of a stockbroker?

• To issue new shares of stock to the public

• To manage a company's financial records

• To buy and sell stocks on behalf of investors

• To audit financial statements for accuracy

Multiple Choice

The group of stocks that you own is called a

• commission

• portfolio

• dividend

Multiple Choice

A time when stock prices are RISING is called

• transaction

• bear market

• bull market

Multiple Choice

an exchange of goods, services, or money

• transaction

• profit

• diversify

Multiple Choice

someone who lends or gives money in hopes of making a profit is a(n)...

Hint: think of Julie's croissant shop.

• portfolio

• stockbrocker

• shareholder

• investor

Multiple Choice

the chance of losing money or assets

• risk

• profit

• diversity

• transaction

Multiple Choice

You purchased 100 shares of Nike at $47.75 per share. A year later you sell your 100 shares for $62 per share.
1. Did you make a profit or lose money?
2. How much money did you make or lose? 

• Profit $1,425
• Loss $1,425
• Profit $10,975
• Loss $10,975

Multiple Choice

When Dee buys shares of PIZZA stock, she becomes __________.

• an entrepreneur.
• a partial owner of the company.
• a lender.

Multiple Choice

The Stock Market Crash of 2008 was mainly due to

• rising interest
• unrest around the world
• mortgage and credit crisis
• trading complexities

Multiple Choice

Apple stock plummets and now you have to decide if you hold onto your stock in the hopes that it goes back up, or sell it at a loss.  Apple stock is now selling or $54.76 a share.  You have 2 shares.  When you first bought them their total value was $226.10.  What is their total value now?

• 109.52
• 22.10
• 557.22
• 5.05

Multiple Choice

Only the very rich can buy stock.

• True
• False
• Maybe

• All of the above

Multiple Choice

The government owns the stock market.

• True
• False
• Some of it

Multiple Choice

An investor takes a risk when buying any stock.

• True
• False

Poll

After this review, I feel --- about stocks & Stock Market

• Very Good /

  Very Confident

• Good /

  Confident

• Eh...Ok, I guess

• So confused and lost

• Other: My thoughts and feelings are not listed here