Practice Exercises No. 5B | Stock Market Concepts

Which entity is credited with inventing the world's first stock market?

• British East India Company

• Dutch East India Company

• French Trading Guild

• Venetian Merchants

What is the primary purpose of an Initial Public Offering (IPO) for a company?

• To buy out competitors

• To secure a bank loan

• To launch onto the official public market and raise capital

• To distribute profits to existing shareholders

What happens to a company's stock price when there is increased demand for its shares?

• The stock price decreases

• The stock price remains unchanged

• The stock price increases

• The company issues more shares to meet demand

Which of the following is NOT explicitly mentioned as a factor influencing the day-to-day fluctuations in the stock market?

• Changes in production technology

• Fluctuating prices of materials

• The company's annual revenue

• Bad publicity or new laws