Personal Financial Literacy Quiz: What is a Stock?

Stock is defined as a ​ (a)   in a company.  If you own a company’s stock, you own a ​ (b)   of the company itself.  This includes partial ownership of its assets (like equipment, vehicles, and buildings) and partial ownership if its income and profits. 

If a company has 5000 shares available for purchase and you buy 100 shares, what percentage of the company do you own?

You do not need to type in the % sign in for your answer.

(a)  

Match the following

What is an IPO?

What does a Stock represent?

What is Preferred Stock?

The company Apple has how many shares outstanding?

Where were stocks first created?

Investing in stock is ​ (a)   .  There’s no guarantee that a company will be successful.  Companies strive to be ​ (b)   , but they also face unexpected events which can impact their ​ (c)   and impact investor confidence.  So when you decide to purchase stock, be prepared for some ​ (d)   .​

Some large companies like to have their stock price stay in a certain range. One reason for this is that the more ​ (a)   a stock, the fewer people who can afford to buy it (or buy an additional share), so ​ (b)   stocks can help it become more affordable, and increase the total value of all stocks in the long run.