Stock Market & Retirement Quiz

__________ represents shares of ownership in a company

• Shareholders
• Stock
• Stock Market
• Dividend

Only __________ traded companies are able to sell ownership in their companies  through a large market place ____________?

• Publicly, Stockmarket
• Privately, Stockmarket
• Publicly, Stockholders
• Privately, Stockholders

People who own shares of a company are called __________. 

• Shareholders
• Stockholders
• Shareholders or Stockholders

Owning stock in a company is one way you can __________ your money. Other ways may be by owning mutual funds or real estate. 

• Profit
• Invest
• Loss

The three major US stock exchanges are __________.

• New York Stock Exchange, American Stock Exchange, NASDAQ
• New York Stock Exchange, Washington Stock Exchange, NASDAQ
• United Nations Exchange, American Stock Exchange, and Washington Stock Exchange

Why does a company issue stock?

• to brag about their profits
• to attract money
• to gain publicity
• because it is required by law

The DOW Jones Industrial Average is an index of 30 American companies.  Why is the DOW Jones Industrial Average important?

• It tells Americans how much debt the country is in.
• It helps economists predict when a stock market crash will happen.
• It tells Americans how many jobs are out there.
• It provides a snapshot of how the stock market and the US economy is doing.

When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.

• dividend

• asset

• stock

• bankrupt

Usually, when there is high demand (want) for ownership of a particular company or a product made by that company, what happens to the price of that company’s stock?

• goes up

• goes down

• stays the same

Which answer best supports the idea that investing in the stock market is better than putting money in a savings account?

• Investing in the stock market is a safer way to earn money

• Investing in the stock market gives a better return on your money

• Investing in the stock market guarantees investors they will make a profit