Quiz 2 Unit 8 Review: Selecting Stocks

Demand

A call for product or service; a need or want.

Stock

A representation of the part of a company that you own.

A ________ is similar to a rise in market and signifies a good time to buy if you are looking to purchase stocks.

Climb

True or False. There Wall Street journal actually added to the fears of people in 1929 by reporting in an irresponsible manner about the unfound fears.

False

True or False.If you do not see any profit from the company recently, that is a sign it may be good business for investments.

False

One of the first rules that almost every investor will tell you is: Do not invest any money that you cannot afford to _______.

Lose

In order to have a professional buy stocks for them, millions of people purchase:

Mutual Funds

In an _____________, you put your money in the fund and the investment company combines that money with the money of the millions of other investors, and buys stocks and minds with it.

Open Mutual Fund

A standard unit of value in the stock market it a:

Point

After all expenses are subtracted, the amount of money left after a sale is called a:

Profit

Retail

Selling directly to the consumer with costs included to cover manufacturing, advertising, and overhead.

If you own stock, you would be known as a _______.

Shareholder

If you do not see the demand for the product, it is best to be __________ about buying stock from that company.

Skeptical

Correction

The market trying to steady itself avert a monumental movement.

True or False. Buying stock should be equated with buying into a partnership of a business- after all, your money is going into a corporation that will try to use it to grow.

True

True or False. If the company has been making a good profit against competition, you may continue to see that the profit grow, and that is a good sign for investing.

True

True or False. Percentage-wise, the 1987 stock market crash was more harsh than the 1929 crash.

True

True or False. Putting money into stocks is a risky thing.

True

True or False. Investors' fears become so powerful that increased movement on the stock exchange occurs, causing financial panic.

True.

True or False. When you buy stocks. you are buying a small percentage of everything owned by the company. this includes computers, desks, and bookshelves, among other things.

Ture