Stock Market Basics

Stocks are items found in the storeroom of a grocery store.

• False
• True

Only rich people invest in the stock market.

• True
• False

Bears, Bulls, and Pigs are found in the stock market.

• True
• False

Stock prices are set by the Securities and Exchange Commission, a regulatory agency of the U.S. government. 

• True
• False

Buying stocks is a sure way to make money.

• True
• False

People can buy stocks on the Internet.

• True
• False

What is a dividend?

• Typically paid out each quarter, dividends are basically your share of the company’s profits
• A grandchild.
• A symbol that looks like a dot on either side of a dash.
• Something you use to hold books up on a shelf.

What are Earnings per share?

• Calculated by dividing a company’s net income by the number of outstanding shares
• When the CEO of a company shares their paycheck with their employees, usually around Christmas time.
• When The CEO of a company shares their lunch with their employees.
• Something you earn from God when you share.

What is a Bull Market?

• This is when the stock market is performing extremely well. You may be referred to as a ‘bull’ if you are openly optimistic about the market’s continuing growth potential.
• Not a real market, i.e. it's "bull"
• When you take a huge risk in the stock market. This term derives from the American Idiom, "grab the bull by it's horns"
• When the arrow on the stock market chart sinks, because iot is weighed down, like a heavy animal, or bull.

What is a bear market?

• An illegal market place where bears are bought and sold. 
• A market where you can buy food if and only if you are a bear.
• A market that is referred to as a "bear" when it gets cranky, hangry and tired.
• The market is referred to as a ‘bear’ when it’s not performing well. Technically, a bear market exists when the stock market drops at least 20% from its most recent high.