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STOCK MARKET Flashcards | StudBud
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STOCK MARKET
STOCK MARKET
15 terms
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StudBud Administration
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19 plays
Help to revise your knowledge about stock market in the previous lessons.
Flashcards
15 cards
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Practice quiz
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Host live
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Questions
15
Answers
1
The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important
It tells Americans how much debt the country is in.
It provides a snapshot of how the stock market and the US economy is doing.
It helps economists predict when a stock market crash will happen.
It tells Americans how many jobs are out there.
2
The stock market is important because
it is the most widely followed financial market in the U.S
All of the above
it is where interest rates are determined
it is where foreign exchange rates are determined
3
Changes in stock prices ________
do not affect people’s wealth and their willingness to spend
are unimportant to decision makers
occur in regular pattern
affect firm’s decisions to sell stock to finance investment spending
4
What is the stock market?
A special type of grocery store that sells stocks.
A place where parts of businesses are bought and sold.
A type of bank that gives out loans to new businesses.
A type of farmers market where people buy and sell food.
5
Common stock represents shares of ownership in a corporation and the type of stock in which most people invest.
False
True
6
To say that stock prices follow a “random walk” is to argue that stock prices
cannot be predicted based on past trends
rise, then fall in a predictable fashion
tend to follow trends
rise, then fall, then rise again
7
How many type of stocks are there in stock market?
6
8
9
7
8
The stock market is a physical place.
Yes and No, there are physical places where stocks are sold, but they are a
No, trading is all done online.
Yes, it's located in most major cities around the world.
9
Which term is used to describe a payout made to shareholders representing their share of a corporation's profit?
Commission
Paycheck
Dividend
Coupon
10
You can buy stock in any company in the world.
False
True
11
Stocks represent ownership in a corporation.
False
True
12
Why would a company need to issue stock?
To increase its' customer base.
To show customers that it's successful.
To stop the government from regulating it.
To raise money.
13
As long as you are 18 years old and have some money, you can invest it in the stock market.
True
False
14
The name for a part of a business that is bought and sold on the stock market is:
Part
Share
Marker
Stocker
15
One of the most important purposes of stock market is
Tracking the performance of various stock market indexes
Asking for a loan from banks
Providing capital to companies that they can use to fund & expand business
