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.

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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.

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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.

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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

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

• TRUE
• FALSE