Understanding the Stock Market

What is the primary reason companies sell stocks?

• To expand their office space

• To reduce employee salaries

• To raise money for the company

• To increase their product prices

In the context of stock investment, what does it mean to earn dividends?

• Getting a discount on company products

• Having a say in the company's marketing strategies

• Being able to visit the company's headquarters

• Receiving a portion of the company's profits

Why is it important to research a company's net worth before investing?

• To understand the company's financial health

• To know the company's office location

• To find out the company's employee count

• To learn about the company's marketing strategies

What is a bull market?

• A market where stock prices are unpredictable

• A market where stock prices are falling

• A market where stock prices are stable

• A market where stock prices are rising

What are blue-chip stocks known for?

• Being new to the market

• Maintaining their value over time

• Having a low market value

• Being highly volatile