Investment Bell Ringer 3

What is a stock?

• A measurement of a company’s profits

• An investment option that allows you to own a small piece of a company

• An annual report that includes details about a company’s leadership and earnings

• A low-risk savings option that can help you build an emergency fund

When reading a stock quote, which of the following metrics would give you the best idea of the total value of the company?

• The stock ticker symbol

• The price change of the stock, quoted as a percentage

• The market cap

• The stock’s opening and closing price for that day

Which of the following is TRUE about a stock split?

• Stock splits impact the overall value of a company

• Stock splits decrease the number of shares you own

• Stock splits indicate that a company is doing poorly

• Stock splits make a stock more accessible to a greater number of investors

You bought 10 shares of stock in StreamingVideoCo for $45 per share. Two months later you sold the 10 shares of stock for $80 per share. What was your profit or loss on StreamingVideoCo stock? (Assume that StreamingVideoCo didn't pay a dividend and that you didn't incur any trading fees during that period.)

• Loss of $800

• Profit of $350

• Loss of $450

• Profit of $800

How can someone make money from investing in a stock?

• They sell the stock for a lower price than what they bought it for

• They receive dividends or they sell the stock at a higher price than what they bought it for

• The stock loses value but the overall market experiences a positive return

• They sell the stock for the same price they bought it for

As a public company shareholder, what benefits are available to you?

• You may receive dividends from the company, if the company pays them, and you have ownership of a portion of the company

• You must receive dividends from the company and you can select members of the management team

• You can select members of the management team and vote for members of the Board of Directors

• You have ownership of a portion of the company and receive coupon payments from the issuer