SMQ Week 3

What happens when more investors want to buy a stock than sell it?

• The stock price decreases.

• The stock price increases.

Which of the following is NOT a factor that affects stock prices?

• Supply and demand

• The CEO’s favorite color

• Company earnings reports

What type of news can cause a company’s stock price to rise?

• A new product launch

• A lawsuit against the company

• High inflation rates

True or False: A company’s earnings report has no impact on stock prices.

• True

• False

What economic event might cause stock prices to fall?

• The Federal Reserve raising interest rates

• A company announcing strong profits

Which term describes when stock prices are rising due to investor optimism?

• Bull Market

• Bear Market

What is market sentiment?

• The emotions and attitudes of investors that influence stock prices.

• The interest rate set by the Federal Reserve.

Which of these is an example of market panic?

• Investors selling stocks rapidly after a bad economic report.

• Investors buying more stocks because they believe in long-term growth.

If a company reports record profits, what would you expect to happen to its stock price?

• It will decrease.

• It will increase.

True or False: Stock prices always reflect a company’s real value.

• True

• False