Check: Lesson 2

Question 1

How is the price of a stock determined?

Accepted Answer

Company is assessed & given a value/price for when its shares are issued., Supply & demand of the stock, By how much money the company makes.

Question 2

The Stock Market:

Accepted Answer

A mostly electronic place where people buy and sell stocks.

Question 3

Why might someone buy a stock from someone else?

Accepted Answer

They think that the price will go up, They want to invest their cash so that they can make more money

Question 4

What impacts stock prices?

Accepted Answer

wants of consumers, supply & demand, company sales

Question 5

What is a shareholder?

Accepted Answer

Person who invests in a corporation by buying stock and is a partial owner

Question 6

This can cause a stock to lose money

Accepted Answer

Both "A" and "B"

Question 7

What is market cap? A measure of what a company's....

Accepted Answer

market value is

Question 8

Why do companies sell stock?

Accepted Answer

They need money to run the company, They need money to grow and expand

Question 9

What might make a company's stock price go up or down?

Accepted Answer

if more people wanted to sell a stock than buy it, If more people want to buy a stock (demand) than sell it (supply)

Question 10

What does IPO stand for?

Accepted Answer

Initial Public Offering

Question 11

The best way to learn about a stock purchase that fits your investment philosophy

Accepted Answer

Comes from a variety of different sources and evaluating current events

Question 12

Why would someone sell a stock they own?

Accepted Answer

They think that the price will go down, They need cash right now

Question 13

Other words for stock

Accepted Answer

Share, Ownership

Questions 13