Supply & Demand of Stocks Warm-up

Question 1

What is a resource with economic value that is expected to produce a future benefit?

Accepted Answer

Asset

Question 2

Someone who actually transfers financial assets in exchange for money in a capital market is a:

Accepted Answer

Trader

Question 3

When are capital gains or losses on a share of stock (or any asset) realized?

Accepted Answer

When it is sold.

Question 4

Who is someone that would advise one about and accept an order to purchase stocks?

Accepted Answer

Broker

Question 5

What says that the quantity supplied by producers tends to be greater at higher prices?

Accepted Answer

Law of Supply

Question 6

If one buys a share of stock from another investor, one buys it in the...

Accepted Answer

Secondary Market

Question 7

If one buys a share of stock directly from a company for the first time, one buys it in the...

Accepted Answer

Primary Market

Question 8

What can one buy that represents ownership in a corporation?

Accepted Answer

Share of Stock

Question 9

What is a marketplace where financial instruments (e.g. stocks, bonds) are traded?

Accepted Answer

Stock Market

Question 10

What says that quantity demanded tends to be higher at lower prices than higher prices?

Accepted Answer

Law of Demand

Questions 10