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How the Stock Market Works Intro

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

In which stock exchange are the smaller companies usually found although there can be big companies in this stock exchange?

a)

NYSE

b)

NASDAQ

2.

In which stock exchange are the smaller companies usually found although there can be big companies in this stock exchange?

a)

NYSE

b)

NASDAQ

3.

Which stock exchange is the original computerized stock exchange in the country?

a)

NYSE

b)

NASDAQ

4.

Which is a company owned and run by one individual who receives its profits or losses and is liable for the company debts?

a)

Partnership

b)

Corporation

c)

Sole Proprietorship

5.

Which is a company owned and managed by two or more people who share its profits or losses and are liable for the company debts?

a)

Partnership

b)

Corporation

c)

Sole Proprietorship

6.

What is one of the main reasons for a business to incorporate?

a)

for tax reasons

b)

to make their company name recognizable around the world

c)

to impress their friends and family

7.

What is one of the main reasons for a business to incorporate?

a)

to make their company name recognizable around the world

b)

if someone decides to sue the company, they would be suing the corporation and not the individual owners

c)

to impress their friends and family

8.

What is one of the main reasons for a business to incorporate?

a)

to make their company name recognizable around the world

b)

to impress their friends and family

c)

it is easier to raise money to grow the business

9.

Once a company goes public, what is the place where shares of that stock trade.

a)

Stock Broker

b)

Stock Exchange

c)

Sector

d)

Investor

10.

The person who actually makes the trade for you.

a)

Stock Broker

b)

Stock Exchange

c)

Sector

d)

Investor

11.

A group of companies that are engaged in similar businesses. For example McDonald's and Burger King (restaurant); General Motors, Ford and Toyota (car); Citibank, Bank of America, and Chase (banking).

a)

Stock Broker

b)

Stock Exchange

c)

Sector

d)

Investor

12.

A person who gives money to a company in return for a share of a company.

a)

Stock Broker

b)

Stock Exchange

c)

Sector

d)

Investor

13.

When a company decides it needs to raise more money and wants to sell its shares to the public (become a public corporation), then it files for a/an

a)

IOU

b)

IPO

c)

PDQ

d)

NYU

14.

You can buy shares of a private corporation in the stock market.

a)

True

b)

False