How the Stock Market Works- Ducksters kjer EconLPHS

Each "Share" of these is a certain percentage of a Company. If you have one You are part owner of that company.

• Market

• Stock

• dividend

• Loan

Why do Companies sell stock?

• to avoid taxes

• to raise money in order to expand

• to raise money without taking out a loan and having to pay interest

• to gain the confidence of the public

Place where Stocks are bought and sold?

• Stock Emporium

• Congress

• Legislature

• Stock Exchange

• Stock Market

The two largest Stock Exchanges

• NASDAQ

• Los Angeles Stock Market

• New York Stock Exchange

• NISSEI Index

In Paragraph 6, After you read the paragraph; What do you think the a "dividend" means?

• a division of the Stock

• a Trophy

• more shares in the company

• a financial payout as a reward for investing.

Returns tend to be higher but so is the risk?

• Bank, Savings account

• Bank, CD or Certificate of Deposit

• Stock Market,

• Personal Loan

Returns are much lower, but your money is insured and guaranteed by the government.

• Bank, Savings Account

• CD, certificate of Deposit

• Stock Market, Mutual fund

• Personal loan from Grandma

When stock values are falling and most people are fealing negative about the future of the Stock Market

• Bull Market

• Bear Market

• Investor's Market

• Murphy's First Law of Economics

When stock values are rising and people are feeling optimistic about the future of the Stock Market

• Bull Market

• Bear Market

• Investor's Market

• Murphy's First Law of Economics

Number used by many people to judge how well the overall stock market is doing.

• NISSEI Index

• Dow Jones Industrial Average

• Rhianna's Market Pickem' Parlay

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