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The Stock Exchange - Netflix S1 Flashcards | StudBud
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The Stock Exchange - Netflix S1
The Stock Exchange - Netflix S1
30 terms
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Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
What is the S&P 500?
Federal government agency branch
Stock index tracking 500 companies
Name of a past economic crisis
Exchange rate for foreign currency
2
What caused the 2008 financial crisis?
Declining prices of oil worldwide
Low demand for technology stocks
High home prices and risky lending
Stock splits in major tech companies
3
What does a stock represent in a company?
A long-term loan agreement with investors
An employee’s share within the company
A portion of company ownership rights
Corporate debt and related obligations
4
What is a stock exchange?
A stock research lab for new investments
A secure bank for storing personal stocks
A grocery store with various food products
A platform where stocks are traded publicly
5
What is a “bear market”?
A market where prices are rising
A market without any public trades
A market open only at night-time
A market where prices are falling
6
Why do companies sell stocks?
To raise capital and expand their business
To avoid certain forms of income tax
To provide discounts on customer services
To employ more workers in their industry
7
What is the SEC’s main role?
Invest directly in stock markets
Regulate stock markets and investors
Set fixed interest rates in banks
Provide public loans for companies
8
What is “market volatility”?
Unchanging prices over long periods
Very high supply of available stocks
Fluctuations in stock prices over time
Very low demand for available stocks
9
What primarily drives stock prices?
The hours that the exchange is open
Supply and demand within the market
The company’s size and sales income
Policies enforced by the government
10
What is a “stock index”?
A government-created stock market
Index tracking a set of stocks
A type of corporate stock
A bond from the government
11
What is insider trading?
Buying stocks from a public sale
Using private info to trade stocks
Trading only in mutual fund stock
Selling stocks with low prices
12
Where was the first stock market established?
Amsterdam
Auckland
New York
London
13
Which company was first to issue public stock?
British East India
Google
Dutch East India
Tesla
14
What do institutional investors manage?
Large-scale funds for institutions
Individual personal savings accounts
Cryptocurrency investments only
Corporate investments in bonds
15
What does owning stock represent?
A job position in a financial department
A rental of a company's property and assets
Ownership and claim within a company
Debt obligation within a private company
16
What was the “dot-com bubble”?
Market crash from tech over-investment
Growth in agricultural investment
A time of high oil and gas prices
Decline in real estate values
17
What is a mutual fund?
Insurance for investment loss
Collection of stocks managed by pros
Basic savings account in banks
Loan provided for stock purchases
18
What often causes stock market crashes?
Panic selling and financial speculation
Strikes by company employees
Natural events and weather patterns
Strikes by company employees
19
What is the stock market?
A location for buying groceries and other items
A platform for buying and selling company shares
A non-profit charity organization for donations
A government-run financial assistance program
20
What is a “bull market”?
A market where no trades take place
A market that remains closed long-term
Market where prices are generally rising
Market where prices are always falling
21
What does ETF stand for?
Government policy on inflation
Emergency Trading Fund
Exchange-Traded Fund
Stock exchange for new investors
22
How can investors reduce risk?
Avoid doing stock research
Invest only in a single company
Rely on stock predictions only
Diversify investments in stocks
23
What is “day trading”?
Investments in only foreign markets
Overnight trading of all stocks
Short-term buying and selling in a day
Long-term investments for profit
24
Who are retail investors?
Individual investors with savings
Investment firms with many assets
Registered banks for public accounts
Large corporations with high revenue
25
Why do stock prices change frequently?
Stable prices that rarely fluctuate
Demand, news, and investor sentiment
Banking regulations that set prices
Government controls on public prices
26
What does IPO stand for?
Initial Public Offering
Initial Price Offering
Immediate Product Offering
Instant Private Offering
27
How does the stock market impact the economy?
Causes natural disasters worldwide
Impacts just financial institutions
Affects only stock market brokers
Influences consumer confidence levels
28
What is the purpose of the stock market?
To keep the economy stable and protected
To enable companies to raise funds for growth
To provide loans to banks and corporations
To trade basic goods and physical services
29
Why do some people avoid stocks?
Fear of loss and market volatility
No banks available in the area
Lack of an internet connection
No access to local grocery stores
30
What is the main benefit of buying stocks?
Ownership of the company and potential profits
Guaranteed salary or passive income earned
Special deals on the company’s services
Free access to all of the company's products
