How does the stock market work? Video Quiz

The Dutch East India Company turned to individuals who could invest money to support the trip in exchange for a share of the ship’s _________.

• liabilities

• losses

• water

• profits

Selling shares in coffee houses and shipping ports across the continent, the Dutch East India Company unknowingly invented the world’s first ________.

• Starbucks

• Cryptocurrency exchange
• Insurance company
• Stock market

In the stock market, the first investors get to buy the first shares offered by a company as part of its __________

• Initial Public Offering (IPO)
• Initial Private Offering (IPO)
• Last Market Offering (LMO)

• Secondary Public Offering (SPO)

In the public market, any company or individual who believes the business could be profitable

might ______.

• sue the company

• buy a stock

• open a restaurant
• start a charity

Buying stocks makes those investors partial _______ in the business.

• customers
• owners
• managers
• employees

As demand for stocks increases, so does their _______

• market share

• supply
• price

• quantity of stock

In the stock market, appearing to lose value often leads to losing _______ and the stock price will fall

• competitors

• market share

• management

• investors

Human _________ in the market has the power to trigger everything from economic booms to financial crises.

• kindness

• perfection

• confidence

• empathy

The video says the stock market is only for the rich and powerful

• True

• False

The video encourages people to educate themselves so they can support the businesses they believe in, and pursue their financial goals.

• True

• False