LifePac Government grade 12 unit 8

From its humble origins of the _____________, the stock market in America has grown to be a financial force in the world today.

1700

__________________ was the year in which the Stock Market crash started the Great Depression after an incredible plunge which made millionaires into paupers in hours

1929

The record breaking, dead-bottom low for the crash that started the Great Depression did not come until July ________________, as the market lost approximately ___________% of its value

1932, 89

A recent stock market crash occurred on October 19, _______________

1987

Percentage-wise, which stock market crash was worse? (1929 or 1987)

1987

The AMEX® stock symbols usually have __________________ letters

3

Give two examples provided that represent a blue chip stock: _________________ and ________________________.

Boeing, AT&T

(T or F) *The Wall Street Journal*® actual added to the fears of people in 1929 by reporting in an irresponsible manner about unfounded fears.

F

(T or F) England's first stock exchange began in 1873

F

(T or F) If a person bought a bond, they received a paper for a certain weight of gold

F

(T or F) If you do not see a demand for a product, it is best to be quick about buying stock from that company

F

(T or F) If you see a wide margin between the high and low numbers, you can tell that there will be a smaller risk than with other stocks which have a large difference between their numbers in that column.

F

(T or F) The Belgium Stock Exchange began with a handful of men standing in front of a buttonwood tree near the Trinity Church in East Manhattan during the American Revolution

F

(T or F) The S&P® list contains the 500 smallest publicly held companies

F

After the ________________________, Wall street became much more important and the New York Exchange was getting all the business it could use

Industrial revolution

(T or F) A stock is a representation of the part of the company that you own

T

(T or F) Putting money into stocks is a risky thing

T

(T or F) Standard and Poor's® 500 is a type of stock index favored by profesionals becasue is includes a wider range of public compnaies than the Dow Jones (sm) industrial average does.

T

(T or F) The very first stock exchange was created in 1591 in Antwerp, Belgium

T

(T or F) 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

T

(T or F) When you see the volume figure, you are looking at the amount of stocks that were traded on that day

T

In addition to bonds, the banks sold little parts of their banks to whomever had the money and the desire to own a share in the business

T

Traders would meet on what was once a farmer's market area known as Wall Street in New York.

T

___________________________are the safest stock investment you can make, since these corporations are so large and powerful they can withstand a downturn in the economy.

blue chip stocks

In the 1700s the first banks in American history were being created and once again __________ was needed to make the start successful.

cash

When selling your stock, you would call the broker and the process would go almost the same way. The broker will deduct his ________________ and then pass the money on to you.

commission

There is more of a risk with ___________________ stock and the gains and losses of a company will directly affect the ___________ stock. You get a high chance of making a profit with _________________ stock.

common, common, common

Before the crash known as "Black Thursday," people felt a(n) _____________________________ was due, since the 1987 market had been growing so strongly. This meant that the market was trying to steady itself out after a monumental movement. People felt that the market would have to take a breather after all that growth and settle back to a slow routine

correction

_______________________ is the term used for the stock market events of 1929 in which investors lost millions of dollars due to a stock market that kept falling

crash

By looking at the net change, you can see the change of the price of the stock during __________________. You can learn whether the price has been rising of dropping

day

In some cases, many ___________________ brokerages are offering significant discounts for conducting purchases over the internet.

discount

A share of profits received by a shareholder is called a(n)____________________

dividend

A price-earnings ratio is figured out by calculating the relationship between the price of the company's stock and the ______________________earnings a company makes in the entire _________________. It is figured out by dividing the closing price of a stock by the earnings per share of each stock.

earnings, year

When you enter the business world of purchasing stocks, you must realize that this is not ________________

gambling

The volume number is given in the _________________________, so if you want to get the actual number of stocks traded, simply multiply the volume number by ____________________

hundreds, one hundred

Common stock is a type of stock that simply shows that you own part of the company; it is the basic stock a company will __________________.

issue

NYSE® symbols are usually on, two, or three, ________________________

letters

Millions of people purchase ___________________, which give the freedom to a professional to purchase stocks and control the money given to him.

mutual funds

Some of the stocks offered were __________________________ to be put in the NYSE®, so a brisk business was running outside on the curb of the street.

not reliable enough

In a(n) ____________________________________________, you put your money in the fund and the company combines that money with the money of millions of other investing people and buy stocks and bonds with it

open mutual funds

Some Christians have a fear that buying on the stock market is no different from betting on a horse race. But buying stock should be equated with buying into a(n) ________________________ of a business-- after all, your money is going into a corporation that will use it to _____________________.

partnership, grow

Volatility gives you an idea of the risk and ________ potential of that particular stock

profit

A broker is the person who does the actual ______________ of the stocks for you.

purchasing

After the broker has called the floor broker, the floor broker goes to the area allotted for that particular stock. He buys the amount of stock from the company. He _________________ it on the floor and then back to your brokerage ________________________. The stock is yours.

reports, house

Two questions to ask before you invest any money are: Is the company making a product or ______________________ that somebody wants? How has the company been doing against its ____________________?

service, competition

In our story about purchasing stocks, the broker tells you, "Well, right now a share in Mattel® Toys is going for 10 Dollars (not the actual price), but my _____________________ will cost you 40 dollars, so you can buy six shares of Mattel®."

services

A unit of the equal parts of the capital stock divided by a corporation is called a(n) _______________.

share

The floor broker purchases you six shares of Mattel® and then reports the trade to the floor. That means that hundreds of computers all over the NYSE® have recorded your ___________________

transaction

The 52 weeks high and low will tell you about the _____________________ of a stock. If the the numbers show little difference between each other, there is less risk of loss-- but there is also less opportunity for gain.

volatility