The Stock Market Explained - Netflix

What is an IPO? 

• When a stock goes bankrupt

• The first day a business opens

• Called an Initial Public Offering, it is the first day a business sells shares of its ownership to investors 

What is a dividend?

• When a company divides their stock into smaller pieces.

• A portion of profits a company pays to shareholders.

• Money companies pay to all of their customers.

Which is the largest stock exchange in the world?

• American Stock Exchange (AMEX)

• New York Stock Exchange (NYSE)

• London Stock Exchange

What kind of companies typically have stocks exchanged on the NASDAQ?

• Established blue chip companies

• Tech companies

The Dow Jones Industrial Average...

• measures the stock performance of only the 30 most important companies listed on the major stock exchanges in the United States.

• measures the stock performance of all the stocks listed on the major stock exchanges in the United States.

In the 1950s, the stock market helped....

• Robber Baron rich elites to new heights 

• The Middle Class grow

• Low income folks benefit from the stock market

The price of a stock is based on:

• What a company is actually worth

• What people believe a company is worth

The famous Economist Milton Friedman said that publicly traded companies should only care about....

• Bondholders (the people they owe money to)

• The government

• The community

• Shareholders

True or False   Companies were thinking about ALL of their Stakeholders (including not only shareholders, but customers, employees, community members, etc) when they were making decisions at this time

• True

• False

True or False You can influence how companies make decisions that impact environmental or social issues through your choices of companies to invest in.   Hint: Many companies offer sustainability investing options for all investors

• True

• False