Stock Market Quiz

What did the Dutch East India Company trade in the 1600s?

• Gold, porcelain, spices, and silks

• Coffee, tea, and sugar

• Oil, gas, and coal

• Books, art, and music

How did the Dutch East India Company fund their voyages?

• By selling shares to private citizens

• By borrowing money from banks

• By using their own profits

• By receiving government grants

What did the Dutch East India Company unknowingly invent?

• The world's first stock market

• The first coffee company

• The concept of globalization

• The idea of international trade

What is an IPO?

• Initial Public Offering

• International Product Organization

• Investment Portfolio Optimization

• Individual Profit Opportunity

What happens when a company's stock price increases?

• The cost for prospective buyers increases

• The company's market value decreases

• Investors sell their stocks

• The company becomes less successful

What can cause a company's stock price to fall?

• Changes in leadership

• Positive publicity

• New laws and trade policies

• Increased demand for stocks

Why do professionals promote long term investing?

• Because it increases the chances of success

• Because it guarantees quick cash

• Because it is less risky

• Because it is easier to track

What can trigger economic booms and financial crises?

• Human confidence in the market

• Fluctuating prices of materials

• Changes in production technology

• Shifting costs of labor

Who can buy stocks in the stock market?

• Everyday investors

• Only the rich and powerful

• Government organizations

• Large corporations

What is the first step to getting invested in the stock market?

• Educating oneself about the system

• Having a large amount of money

• Hiring a financial advisor

• Opening a bank account