WorksheetsWhat is the Stock Market?
Total questions: 11
Worksheet time: 6mins
Learning Objectives graphic lists three goals for students. Based on this graphic, which objective focuses on reasoning about uncertainty in forecasting?
Explain what the stock market is and why companies and investors choose to participate in the stock market
Summarize long-term trends in the stock market
Experience why it can be difficult to predict trends in the stock market
Understanding the Stock Market: Buying Stock When a company lists its stock on an exchange, it means investors can buy its stock. How does this benefit the company?
Which outcome most directly results from a company listing its stock on an exchange, based on the passage?
Investors can buy the company’s stock
The company must lower its prices
The company guarantees profits to investors
The company stops issuing new shares
Jamie asks, "What are the latest trends in the stock market?" Which choice best restates Jamie’s question?
Which companies used to be listed on a particular stock market index?
How has the stock market performed over the past 10 years?
How many companies are listed on the stock exchange?
What are the upward and downward patterns of the stock market over a recent period of time?
What is the difference between a BULL and a BEAR market?
A BULL market is when the stock market is rising and the economy is booming, while a BEAR market describes a declining market and a receding economy
A BULL market is when there is a decline in the stock market and the economy is receding, while a BEAR market describes a rising market and a booming economy.
Which adjective would best describe a BEARish investor attitude?
Optimistic/Positive
Pessimistic/Negative
Investment Strategies and Stock Market Performance
Why is it challenging to match your investing decisions with how the stock market is performing?
It is hard to predict trends, and trends can only be identified once they’ve already happened
The stock market is typically in a BEAR market for a specific period of time
You have to invest large amounts of money to have your decisions match the performance of the stock market
The stock market is typically in a BULL market for a specific period of time
Which of the following questions focuses on comparing your performance to a broader benchmark rather than just calculating your ending account value?
How much did your $10,000 turn into?
Did you beat the market?
If you hadn’t made any trades at all, how much money would you have had?
What was your total number of trades?
Which of the following statements BEST describes the stock market?
Businesses listing their entire company for sale
Businesses selling partial ownership of their companies to raise capital
Investors buying stock in hopes of being hired by companies
People making donations to companies that need funding
During a BULL market…
Investors are pessimistic about how the stock market will perform
The economy is not doing as well
More investors are buying stocks, which causes stock values to increase
The unemployment rate in the country increases
Over time, the stock market has…
Experienced highs and lows but increased in overall value
Had slight ups and downs but stayed about the same in value
Rarely experienced changes and has maintained the exact same value
Gone through severe ups and downs with an overall decrease in value
Scenario: A news report says investor optimism is rising and more people are buying stocks this month. Which market condition does this MOST closely describe and what is the likely short-term effect on stock values?
Bear market; stock values decrease
Bull market; stock values increase
Correction; stock values remain unchanged
Stagnant market; stock values flatline
