Netflix Explained: The Stock Market

What does IPO stands for?

• Income Profit Offering
• Initial Public Offering
• Initial Profit Offering

_____________ are regular payments of profit made to investors who own a company's stock.

• Capital Gain
• Taxes
• Dividends

This stock exchange was established in 1792 and today big traditional companies such as GM, Walmart, and Exxon Mobil stocks are traded (bought and sold).

• Nasdaq
• New York Stock Exchange
• American Stock Exchange

This stock exchange was established in 1971 and does not have a physical location and company trades are made electronically.

• Nasdaq
• New York Stock Exchange
• American Stock Exchange

When you need or want to measure how the stock exchanges are performing in America, you should look at the following indexes. Which of the following are indexes?

• NYSE
• S&P 500
• NASDAQ
• Dow Jones

America is the only country that has its own stock market index.

• True
• False

If a public company's CEO makes poor business decisions, it can impact the company's stock price. When stockholders think the company will perform poorly as a result, they may sell their company shares, which could drive the stock price down.

• True
• False

The famous billionaire investor, who advised the public to invest in a low cost S&P 500 "index fund" is ______________ _____________.

• Warren G
• Steve Warren
• Warren Buffet

When you invest a portion of your money in several companies within an index is called an Windex fund.

• True
• False

Answer explanation

In the stock market, it's not the real value of companies that drive their stock prices, it's the most popular story people believe about those companies.

• True
• False