Stock Market Quiz

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

• Oil, electronics, textiles, and coffee

• Gold, porcelain, spices, and silks

• Wheat, sugar, tea, and leather

• Silver, cotton, spices, and gems

What did the Dutch East India Company do to fund their expensive voyages?

• Sought government funding

• Turned to private citizens for investment

• Used their own profits

• Took loans from banks

What did the Dutch East India Company unknowingly invent?

• The first global trade route

• The first shipping port

• The first stock market

• The first coffee house

What is the purpose of a company's initial public offering (IPO)?

• To allow big investors to buy stocks first

• To advertise the company to the public

• To increase the company's private value

• To launch the company onto the official public market

What happens when demand for a company's stocks increases?

• The cost for prospective buyers decreases

• The stock price and company's market value increase

• The company's market value decreases

• The stock price falls

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

• New laws and trade policies

• Increased demand for the stock

• Positive publicity

• Changes in leadership

What is the main reason professionals promote reliable long-term investing?

• To reduce the influence of human confidence

• To make quick cash

• To avoid economic booms

• To increase day-to-day noise in the market

How has the Internet changed the accessibility of the stock market?

• It has made it more complicated

• It has limited access to the rich and powerful

• It has decreased the number of available stocks

• It has allowed everyday investors to buy stocks