The Stock Market

Stocks represent ownership in a corporation.

• TRUE

• FALSE

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

The stock market is a physical place.

• Yes, it's located in most major cities around the world.
• No, trading is all done online.
• Yes and No, there are physical places where stocks are sold, but they are also sold virtually.

When stocks overall are rising, the market is called?

• A bull market

• A bear market

• market capitalization

• market diversification

The first sale or offering of a stock by a company to the public. It happens when a company decides to go public rather than remain solely owned by private or inside investors.

• Public Offering of Corporation (POC)

• First Incorporation of Company (FIC)

• Federal Deposit Insurance Corporation (FDIC)

• Initial Public Offering (IPO)

When a company distributes a portion of its earnings to shareholders they are receiving ___.

• Shares

• Bonds

• Liquidity

• Dividends

Over the long run, stocks have historically outperformed other investments

• True

• False

DOW and S&P 500 are both

• Exchanges

• Indexes

• Stocks

• Ticker Symbols

NKE, DIS, AAPL are all ___ for public companies

• Exchanges

• Indexes

• Stocks

• Ticker Symbols