Stock Market. Basics 1

What is the stock market?

• A type of farmers market where people buy and sell food.
• A place where parts of businesses are bought and sold.
• A special type of grocery store that sells stocks.
• A type of bank that gives out loans to new businesses.

The name for a part of a business that is bought and sold on the stock market is:

• Part
• Marker
• Stocker
• Share

You can buy stock in any company in the world.

• True, all companies are required to offer stock.
• False, a company is only listed on the stock exchange if it wants to be.

As long as you are 18 years old and have some money, you can invest it in the stock market.

• True
• False

Apple is releasing a new iPhone that is predicted to change the cell phone world.  Millions of people have pre-ordered it.  What do you think will happen to their stock?

• It is likely to go up.
• It is likely to go down.

Over the course of the day, the head of Apple's company is imprisoned for not paying his taxes.  What do you think will happen to Apple's stock?

• It will go up.
• It will go down.

Pepsi, Google, Coach, and Nike.  What do these companies have in common?

• You can buy stock in them in our stock market game.
• They are all companies that have declined to be on the stock market, you can't buy stock in them.
• They are examples of failing companies that you wouldn't want to invest in.
• They are all companies with such expensive stock that you won't be able to afford to invest in them in our stock market game.

A holder or owner of stock in a company or corporation.

• stock market

• shareholder

• portfolio

• industry

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

• TRUE
• FALSE

One way stockholders make money is by selling their stock for more money than they paid for it.

• TRUE
• FALSE