What is a Stock?

If I own McDonalds stock...

• I get free food during my visits.

• I get to recommend recipes to the menu.

• I can fire someone if they treat me poorly during my visit.

• I have a vote on certain cooperate matters.

Stocks represent ownership in a corporation.

• True
• False

People who invest in stocks cannot lose their money.

• True
• False

Mark bought 100 shares of intel stock.  Each share sold for $35.50.  If no fees were involved, Mark paid $3,550 for the shares.

• True
• False

The price people pay for a stock is called a dividend.

• True
• False

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

• True
• False

The only way stockholders make money is through dividend payments while they own the stock. 

• True
• False

One way stockholders make money is to sell their stock for more than they paid for it. 

• True
• False

Stockholders can reduce the risk on their stock investment by diversifying their portfolios. 

• True
• False

The New York Stock Exchange is the only place where people can buy and sell stocks. 

• True
• False