Q/Government and Economics - Unit 8: The Stock Market
From its humble origins of the _ , the stock market in America has grown to be a financial force in the world today.
1700s
Percentage-wise, which stock market crash was worse?
1987
The AMEX ® stock symbols usually have _ letters
3
You are checking up on your stocks in the newspaper. What column will tell you the volatility or risk and profit potential of a particular stock?
52 weeks high and low
PE ratio
Calculating relationship between price of company's stock and the earnings a company makes in the entire year
What is the MAIN cause of stock market crashes of 1929 and 1987?
Fearful shareholders
He reports it on the floor and then back to your brokerage house. The stock is yours.
Fifth
You call a broker.
First
He buys the desired amount of stock from the company.
Fourth
Mark the boxes that are TRUE.
In the early days of our nation, the Colonial Government was looking for a way to finance its wartime operations, so it sold bonds. ,Traders would meet on what was once a farmer's market area known as Wall Street in New York. ,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.
The broker calls a person on the floor of the exchange, probably an employee of his.
Second
If you own stock, you would be known as a ________.
Shareholder
Which statement is NOT TRUE?
The first stock exchange was the New York Stock Exchange ® .
American Stock Exchange
The formal name of the curb traders; it began in 1908
The floor broker goes to the area allotted for that particular stock.
Third
What is NOT a question you need to ask yourself before investing in a stock?
What stock exchange is trading the stock?
Which statements are TRUE?
When you buy the stock, you will be referred to as a shareholder or stockholder. If you don't see any profit from the company recently, that's a sign it may not be a good business for investment. One of the first rules that almost any investor will tell you is: Don't invest any money that you cannot afford to lose!
demand
a call for a product or service, a need or want
stock ticker
a device which gives constant updates on the activity of the New York Stock Exchange ® .
downturn
a dip in the market.
dip
a drop in the market which may signify a good time to buy stocks
Barron's
a financial weekly publication which features information on buying and selling stock.
stock certificate
a form of proof as to the stock transaction; mostly obsolete nowadays
symbol
a one to four character symbol that is like a nickname for the company
stock exchange
a place where financial securities are bought and sold
plunge
a significant drop in the market that is more exaggerated than the normal dips that would take place.
share
a unit of the equal parts of the capital stock divided by a corporation
_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
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.
commisson
What type of stock simply shows that you own part of the company; it is the basic stock a company will issue?
common
open mutual fund
company combines your money with millions of other investing people, and buy stocks and bonds with it
penny stocks
considered the first and lowest level of stocks.
A share of profits received by a shareholder is called a .
dividend
If you do not see a demand for a product, it is best to be quick about buying stock from that company.
false
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.
false
People will subscribe to publications such as USA Today ® or The Baltimore Sun ® to get information on investing more wisely.
false
The Wall Street Journal ® actually added to the fears of people in 1929 by reporting in an irresponsible manner about unfound fears.
false
Your broker tells someone to buy six shares of Mattel ® stock for you. The person he is talking to is called the sales broker and the transaction take place on the floor of the stock market.
false
When you told the broker you wanted to get those six shares of Mattel ® stock, he sent a message to a person who is working on the
floor of the New York Stock Exchange ® .
The activity the day before; the highest price and lowest price of the stock, along with the closing price at the end of the business day will be noted on the stock page as:
high, low, and close
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
brokerage house
initial location where stock transaction takes its first steps. The broker acts as an intermediary in purchase
Millions of people purchase _ , which is an easy way to have a professional buy stocks for them.
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 good enough
bear
one who believes the outlook for a market or stock is down.
shareholder
one who owns shares of a business on the stock exchange.
prospectus
plan of a financial endeavor, including how much capital is needed in order to be a shareholder
After all expenses are subtracted, the amount of money left after a sale is called a:
profit
A broker is the person who does the actual _ of the stocks for you.
purchasing
retail
selling directly to consumer with costs included to cover manufacturing, advertising, and overhead
A unit of the equal parts of the capital stock divided by a corporation is called a _ .
share
climb
similar to a rise in the market, signifies a good time to buy if you are looking to purchase stocks
Industrial Revolution
started in the mid-19th century; financial emphasis moved from farming to the factory
crash
stock market events of 1929 in which investors lost millions of dollars due to a stock market that kept falling.
net change
the change of the price of the stock from the previous day
New York Stock Exchange
the largest of all American stock exchanges, created in 1792
volume
the number of stocks that were traded on the previous day
preferred stock
the owners of this type of stock will collect their dividends first, before the owners of common stock
broker
the person who will do the actual purchasing of the stocks for you.
Which of these words is NOT a name for a stock?
tickers
A stock is a representation of the part of the company that you own.
true
First, all the common stock in a company must be issued. Then the company will begin to issue preferred stock .
true
Investors' fears can become so powerful that increased movement on the stock exchange occurs, causing a financial panic.
true
Look closely at the volume number - if a tiny "z" is shown before the number, the volume is not given in hundreds but is the actual number of stocks traded.
true
Purchasing and selling has to do with the rise s and dips in the market.
true
Putting money into stocks is a risky thing.
true
Standard & Poor's ® 500 is a type of stock index favored by professionals because it includes a wider range of public companies than the Dow Jones SM industrial average does.
true
The very first stock exchange was created in 1531 in Antwerp, Belgium.
true
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.
true
When you purchase a share, you have purchased a little piece of the company.
true
Your portfolio is all of the various stocks or bonds you, as an investor, hold.
true
correction
when the market is trying to steady itself out after a monumental movement
broker services
work done for the shareholder by the broker, such as selling and buying stock.
receipt
written proof that a purchase has been made.
