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Understanding the Stock Market

Total questions: 1

Worksheet time: 10mins

Name
Class
Date

1-10.

Answer the questions below after watching the video

1.

What is often misconceived as a sign of economic prosperity?

a)

The federal interest rate

b)

The unemployment rate

c)

The inflation rate

d)

The stock market performance

2.

What does an IPO stand for?

a)

Initial Private Offering

b)

Internal Product Offering

c)

Initial Public Offering

d)

International Public Offering

3.

Which index tracks 500 of the largest companies in the U.S.?

a)

The FTSE 100

b)

The S&P 500

c)

The NASDAQ

d)

The Dow Jones

4.

Who is known for the investment strategy of value investing?

a)

Gordon Gekko

b)

John Maynard Keynes

c)

Warren Buffett

d)

Milton Friedman

5.

What can cause a stock market bubble to burst?

a)

Stable economic growth

b)

Excessive hype and unrealistic expectations

c)

An increase in stock prices

d)

A decrease in interest rates

6.

What philosophy did Milton Friedman advocate for corporations?

a)

Maximizing shareholder profits

b)

Long-term investment in innovation

c)

Employee welfare

d)

Environmental sustainability

7.

What percentage of S&P 500 companies' earnings went to dividends between 2007 and 2016?

a)

10%

b)

25%

c)

39%

d)

More than 50%

8.

What is a consequence of corporations focusing on short-term profits?

a)

Reduced investment in long-term projects

b)

Increased innovation

c)

Higher employee satisfaction

d)

Economic growth

9.

What did the Wausau Paper Company plan before a hedge fund intervened?

a)

To switch to making tissue paper

b)

To close the Brokaw Mill

c)

To cut costs

d)

To increase dividends

10.

What does the stock market's growth relative to CEO paychecks indicate?

a)

Rising economic inequality

b)

Growing economic equality

c)

Increased employee wages

d)

Decreased corporate profits