The Stock Market

An auction style environment that exists to buy and sell fractional ownership of companies called stocks describes a...?

• Stock Market

• Business Ownership

• A fraternal society

• A club for veterans of the armed services

Fractional ownership in a company is called a...?

• Part

• Marker

• Stock

• Partial

Why would a company need to issue stock?

• To increase its' customer base.

• To get cash.

• To stop the government from regulating it.

• To show customers that it's successful.

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 is an effective gauge of the health of the stock market as a whole.

A distribution of money paid regularly by a company to its shareholders out of the company's profits

• index

• dividend

• profit

• invest

A holder or owner of stock in a company or corporation.

• stock market
• shareholder
• portfolio
• industry

How is a stock's value determined?

• By the success of the company and by supply and demand.

• The CEO of the company sets the price

• The price is an average

• It is based on the number of people who own stock in the company.

What is the overall purpose of buying stock in a company?

• an investor hopes to, one day, sell their stock for more than they paid for it thereby making a profit

• To demonstrate how much money you have.

• To show support fo the company and their products

• To hide money from the IRS so you do not have to pay taxes.

Which company is believed to have offered the first shares of stock to the general public?

• The Dutch East India Company

• Apple

• General Electric

• Samsung

What is the name of the most well know stock exchange?

• The New York Stock Exchange (NYSE)

• The Boston Stock Exchange

• The Imperial Stock Exchange

• The Louvre