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Economics The Stock Market Flashcards | StudBud
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Economics The Stock Market
Economics The Stock Market
17 terms
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#economics #stockmarket
Flashcards
17 cards
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Questions
17
Answers
1
A certificate issued by a government or company promising to pay the owner back.
stock
bond
mutual fund
share
2
The less risk an investor takes, one can expect ___ possible returns.
greater
less
3
Large companies often sell many particular products known as ___.
shares.
brands
mutual funds.
stocks
4
Some of the more common stock market indexes include all of the following EXCEPT
Dow Jones Average
Nasdaq Composite
Standard & Poor 500
Securities and Exchange Commission
5
Which of the following determine a person's risk tolerance?
how long it will be before the funds are needed
financial stability
age of investor
all of these determine risk tolerance
6
Stock prices fall when
there are more companies going public.
more Americans buying stock than there are sellers selling.
more shareholders are selling all their stock.
7
The Securities and Exchange Commission (SEC)
oversees the stock market with rules and regulations
has nothing to do with the stock market
measures the health of the stock market
8
A portfolio with stock in Walmart, Target and Dillards is not
marginalized
leveraged
diversified
9
Purchasing even one ____ gives a person ownership in the company.
dividend
bond
certificate of deposit
share
10
The total number of a company's shares traded refers to
beta.
volume.
IPO.
P/E.
11
The economy is divided into different pieces called
indexes
sectors
markets
12
The Dow Jones Industrial Average measures the health of the stock market using an index of
500 companies.
30 companies.
2000 companies.
13
Which is found in a company's annual or quarterly report?
the company's earnings
the names of all stockholders
advice on how much you should invest in the company
14
Which is not a stock index?
Securities Exchange Commission (SEC)
Dow Jones Average
S & P 500
15
To decide if General Motors Auto Company is a good investment, you should compare it to
companies of the same size.
other auto companies.
companies with the same earnings.
16
Major news about a company would not effect the stock market.
False
True
17
Beta indicates if a company's stock is
diversified.
common.
risky.
preferred.