U3L1 Finance HW

1. Jamie asks, “What are the latest trends in the stock market?” In other words, Jamie is asking…

2. a) Which companies used to be listed on a particular stock market index?  

3. b) How has the stock market performed over the past 10 years?

4. c) How many companies are listed on the stock exchange?

5. d) What are the upward and downward patterns of the stock market over a recent period of time?

• a

• b

• c

• d

2. What is the difference between a BULL and a BEAR market?

• 1. A BULL market is when the stock market is rising and the economy is booming, while a BEAR market describes a declining market and a receding economy

• 1. A BULL market is when there is a decline in the stock market and the economy is receding, while a BEAR market describes a rising market and a booming economy.

3. Which adjective would best describe a BEARish investor attitude?

• 1. Optimistic/Positive

• 1. Pessimistic/Negative

• Neutral

4. Why is it challenging to match your investing decisions with how the stock market is performing?  

1. a) It is hard to predict trends, and trends can only be identified once they’ve already happened

2. b) The stock market is typically in a BEAR market for a specific period of time

3. c) You have to invest large amounts of money to have your decisions match the performance of the stock market

4. d) The stock market is typically in a BULL market for a specific period of time

• a

• b

• c

• d

1. What is the main difference between investors and traders?

1. a) Investors focus on long-term growth while traders aim for short-term gains

2. b) Investors primarily buy stocks while traders primarily sell stocks

3. c) Investors buy and sell stocks frequently while traders buy and hold stocks for a long period of time

4. d) Investors tend to take on lots of risk while traders take zero risk

• a

• b

• c

• d

2. Which of the following statements BEST describes the stock market?

1. a) Businesses listing their entire company for sale

2. b) Businesses selling partial ownership of their companies to raise capital

3. c) Investors buying stock in hopes of being hired by companies

4. d) People making donations to companies that need funding

• a

• b

• c

• d

3. During a BULL market…

1. a) Investors are pessimistic about how the stock market will perform

2. b) The economy is not doing as well

3. c) More investors are buying stocks, which causes stock values to increase

4. d) The unemployment rate in the country increases

• a

• b

• c

• d

2. What is the primary purpose of a stock exchange?

1. a) To provide a platform for companies to sell their products

2. b) To facilitate the buying and selling of stocks and other securities

3. c) To offer loans to businesses

4. d) To regulate the prices of goods and services

• a

• b

• c

• d

3. Which of the following is a characteristic of a BEAR market?

1. a) Rising stock prices

2. b) Increasing investor confidence

3. c) Declining stock prices

4. d) High economic growth

• a

• b

• c

• d

4. What is a common strategy for investors during a BULL market?

1. a) Selling off all their stocks

2. b) Holding onto cash and avoiding investments

3. c) Buying more stocks to capitalize on rising prices

4. d) Investing in bonds and other fixed-income securities

• a

• b

• c

• d