The Stock Market

Represents shares of ownership in a company.

• stock

• portfolio

• volume

• industry

1-4 letter symbol used to represent a company

• tic tok

• stocker

• stock ticker

• stocking

A holder or owner of stock in a company or corporation.

• stock market

• shareholder

• portfolio

• industry

People who own stocks are guaranteed a return on the money they have invested in stocks.

• TRUE

• FALSE

Investors in the stock market during the 1920's frequently borrowed money to purchase stocks, a practice known as

• buying on margin.

• profit sharing.

• share holding.

• ration buying.

What is the S&P 500?

• A stock market index that tracks 500 large-cap U.S. companies

• A stock market index that tracks 500 small-cap U.S. companies

• A stock market index that tracks 500 international companies

• A stock market index that tracks 500 technology companies

What is the primary function of a stock exchange?

• To provide loans to businesses

• To facilitate the buying and selling of stocks

• To regulate the banking industry

• To issue government bonds

Which of the following best describes a common stock?

• A type of stock that guarantees fixed dividends

• A type of stock that represents ownership in a company and a claim on part of its profits

• A type of stock that is only available to company employees

• A type of stock that is traded only on foreign exchanges

What is the Dow Jones Industrial Average (DJIA)?

• A stock market index that tracks 500 large companies

• A stock market index that tracks 30 significant publicly traded companies in the U.S.

• A stock market index that tracks all technology companies

• A stock market index that tracks only international companies

Which of the following best describes a stock split?

• A company issues more shares to reduce the price of each share

• A company buys back its shares to increase the price of each share

• A company merges with another company

• A company declares bankruptcy