Stock & the Stock Market Basics

What is one benefit of owning stock in a company?

• Potential to earn dividends and capital gains

• Guaranteed profits

• No risk involved

• Free products from the company

Which company is NOT required to publicly disclose its financials?

• Apple

• Amazon

• IKEA

• Coca-Cola

What is another term for a shareholder?

• Investor

• Manager

• Employee

• Auditor

What is the main benefit of buying a stock?

• Owning a small part of a company

• Getting a job at the company

• Receiving a loan from the company

• Managing the company

Which of the following statements is true about the stock market?

• It can be both a physical and an online place.

• It only exists in physical locations.

• It only sells groceries.

• It is only for banks.

What are dividends?

• Profits shared with shareholders

• Company debts

• Employee salaries

• Taxes paid by the company

What usually happens to the price of a stock if the company’s profit falls?

• The price of the stock falls

• The price of the stock rises

• The price of the stock stays the same

• The price of the stock doubles

Who becomes a part-owner of a company?

• A shareholder

• A customer

• An employee

• A supplier

What is the relationship between company profit and stock price?

• If profit goes up, stock price usually goes up

• If profit goes up, stock price goes down

• If profit goes up, stock price stays the same

• There is no relationship

What is the main benefit of being a shareholder when a company is profitable?

• Receiving dividends

• Paying company debts

• Managing the company

• Setting company policies