How The Stock Market Works (TedED)

Most financial experts recommend the following for getting started with investing:

• Purchase a few stocks, focusing on only the ones you know

• Long-term, diversified approach

• Trade stocks quickly to beat the day-to-day movements of the market

• All the above

Which of the following could cause the price of a stock to fall?

• Bad press in the media

• New lags and regulations

• Increased competition

• All of the above

Which of the following is not the name as a “share” in a company?

• Stock

• Bond

• Equity

• Ownership

What does IPO stand for?

• Initial Purchase Offering

• Initial Public Offering

• Instant Purchase Offering

• Initial Public Outcome

Stock markets can help investors make personal fortunes but can also leave people penniless. Should beginning investors need to meet with a financial professionals before being able to invest in stock markets?

Stock markets and investing can often be perceived as confusing and daunting topics to discuss. What could the financial industry do better to make its concepts easier to understand?

Despite starting with responsible long-term goals, many investors at some point favor strategies that try to make quick cash. What types of messages would help investors stay on track, even if their goals may not be reached for 10-15 years?