Stock Market Game Test Review

What does a Stock represent?

• A contract for a company's goods or services

• stocks are just tools used by investors to make money

• a loan you make to a company that they must pay back

• A percentage of ownership of a company including assets and profits

What is Preferred Stock?

• Stock that gets paid dividends first

• Stock that lets its owners vote in shareholder meetings

• Stock that is only owned by managers

• Stock that is always worth the most

What is an IPO?

• When a company gets angry at its shareholders and has a meeting

• When a company first sells shares of stock to the public

• A new Apple product

• When the government creates shares on a stock exchange

Approximately how many shares outstanding does Apple have?

• 5,575,000,000

• 5, 575

• 5,575,000

• 55,750

Where were stocks first created?

• Rome

• London

• New York

• Egypt

Where did traders in New York originally meet?

• Outside near a buttonwood tree

• In a rented office building

• In the room above a large pub

• A famous coffee shop

What was the biggest event leading to stocks being the most frequently traded security type on the exchange?

• The invention of the Telegraph

• The Industrial Revolution

• The election of Abraham Lincoln

• Bond prices started to fall

In the late 1800s, what factors led to the growth of the NYSE?

• More people moved to New York City

• World War I started

• The need for funds to finance new companies and build railroads

• The government started trading

How many companies are in the Dow-Jones Industrial Average?

• 500

• 2000

• 30

• 10

What is the DJIA named after?

• A street near Wall Street.

• DOW Chemical

• Charles Dow and his statistician, Edward Jones

• The name of 2 US senators that wrote the bill creating the DJIA