Finance Unbox-ED ($) - Grade 3-5 - Session 021 - Quiz 2

Select the statement that is true

• Stock exchange is a place where people can buy and sell shares of companies
• Buying and selling of shares on the stock exchange is also called trading in shares
• Both of the above
• None of the above

Select the statement that is true

• Small portion of the trades now happen over the internet i.e. electronic trades
• Shares we purchase are stored in an electronic form in something called a demat account
• Both of the above
• None of the above

Select the statement that is true

• Companies need to do a lot of paperwork and compliances and get listed on an exchange
• Once companies are listed on the stock exchange they are called listed companies
• Both of the above
• None of the above

People can buy and sell shares of only listed companies on the stock exchange

• True
• False

Share price is nothing but the price of one share of a company

• True
• False

Share prices go up or down basis how much demand there is for the shares of the company

• True
• False

Demand for a company's shares is higher if the company is expected to do well

• True
• False

Market capitalization means the valuation of the company and is calculated as follows: Share Price x Total Number of Shares of the Company

• True
• False

IPO stands for Initial Public Offering

• True
• False

IPO is the first time a company offers its shares to the public to purchase

• True
• False