BUSIM Stock Market Quiz

What is a stock (also called a share)?

• A loan to the government

• Ownership of a small part of a company

• A type of bond

• When you are nice and give candy to your friend

If a company does well, their stock may ______ in value.

• increase

• decrease

What is a stock market?

• A person who owns one company

• A place where stocks/shares of publicly listed companies are bought and sold

• An online store for generic photos

Which company created the first stock market?

• Amazon

• Microsoft

• Dutch East India Company

Why do companies sell stocks?

• To decrease their value

• To raise money

• To buy other companies

What influences the stock market?

• Economic conditions and global events

• Weather conditions

• Only company performance

What do investors hope for when they buy shares?

• The value will drop

• The company will close

• The value will rise

What is a dividend?

• A portion of the company's profit paid to shareholders

• A fee paid to the government when you sell stock

What kind of stock entitles owners to vote at shareholder meetings?

• Common

• Preferred

What kind of stock gives owners first priority for dividend payments and asset liquidation in case of bankruptcy?

• Common

• Preferred