Stock Market Quiz

What is a person who owns stock in a corporation called?

• Employee

• Shareholder

• CEO

• Partner

What does owning a share in a corporation mean for an investor?

• It means they have a right to work for the company.

• It means they share in the company's profits and losses.

• It means they can manage the company's daily operations.

• It means they receive a fixed monthly salary from the company.

What happens to the value of investors' shares if a company is doing well?

• The shares become less valuable.

• The shares become more valuable.

• The value of the shares does not change.

• The company buys back all the shares.

As a shareholder, what do you also own a percentage of in the company?

• The company's debts only.

• The company's profits only.

• The company's assets.

• The company's managerial positions.

Where do you buy and sell shares of different companies?

• In the stock market.

• At the company's headquarters.

• On the company's website.

• At a bank.

What ultimately determines the price of a stock?

• The company's age.

• The CEO's decision.

• What investors are willing to pay.

• The number of employees in the company.

What do investors consider when deciding what they will pay for shares of a company?

• The current weather conditions.

• How much money they think the company will make in the future.

• The company's location.

• The number of products the company sells.

What is required to predict when a company will grow?

• Guesswork.

• A lot of research and knowledge.

• Insider information.

• Public opinion.

Why do people make big money in the stock market according to the text?

• Because they invest in companies that are already making a lot of money.

• Because they buy shares in a new company or one not making much money when the shares are cheap.

• Because they always sell shares at a high price.

• Because they take significant risks with every investment.

What is the potential benefit of investing in a high-risk investment like an Internet startup?

• It has the potential for making a lot of money.

• It is safer than buying stock in a company that has been around for a long time.

• It guarantees a major change in your investment.

• It has no risk of losing money.