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Stock Market
Companies sell shares to
An IPO
Stock Market
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1
An IPO
stands for Individual Public Offering
allows companies to operate privately
allows a company to sell off parts of the company
stands for Initial Public Offering
2
Companies sell shares to
break apart the company
raise cash/capital
3
A dividend
what initiated in 1792
pays the shareholders a rpart of the profits
pays the company employees a share of the profits
is mandatory for all companies on the Stock Market
4
Consequences of a market bubble burst are
lost of pensions
lost of jobs
The stock market rises
companies go out of business
5
This is the electronic stock exchange that covers most electronic and tech companies
DOW
NASDAQ
S & P 500
New York Stock Exchange
6
In a bear market
the market is rising
the economy is doing very well
people are buying more stocks
the market is declining
7
A bull market is the trend when the market is up
False
True
8
The S&P 500 and the DOW are examples of US indices
True
False
9
A factor that does NOT affect the price of a stock is
size of company
cost of labor
price of materials
bad publicity