Stock Market Review
If you had invested $100 in 1965 in the 500 stocks of the S&P 500 Index, how much would you have had in 2011?
$6,072
What does it mean to "Diversify" your portfolio?
*A and B* To hold more than 1 stock For your stocks to not be all in the same area of the economy
What tools does HowTheMarketWorks have to help you choose stocks?
*All the above* -Suggested Stocks lists -Current market news -Research tools with company information and quotes
How can you tell what professional stock analysts recommend?
*All the above* -The Chaikin Analytics tool on the trading page -The Analysts page of the Quotes tool -Searching for stock symbols on business websites
When was the Dow Jones Industrial Average invented?
1896
What is a Mutual Fund?
A fund that follows an index you can buy like a stock
What does a Stock represent?
A percentage of ownership of a company including assets and profits
Which event had a part in The Great Depression?
Black Thursday
What was the most frequently traded security type in the early days of Wall Street?
Bonds
What is the most common winning investment strategies for new beginners?
Buy what you know
How are stock prices determined?
By a continuous auction process between buyers and sellers.
Who invented the Dow Jones Industrial Average?
Charles Dow
Who is the Dow Jones Industrial Average named after?
Charles Dow and Edward Jones
What is a Bid Price?
Highest price a buyer is willing to pay for the stock
What should you look for when buying stock of a company you know?
If their stores always seem busy
Why invest in stocks?
In order to invest and receive money
What is a disadvantage of Mutual Funds?
It is hard to diversify your portfolio using mutual funds
What is one difference between Mutual Funds and ETFs?
Mutual Funds cannot be day-traded
What was the name of New York City when Wall Street was first built?
New Amsterdam
Where is Wall Street?
New York
Where did traders in New York originally meet?
Outside near a buttonwood tree
What's the best way to invest in stock?
Practice
The Dow Jones Industrial Average is a(n) ___.
Price-weighted index
What is Preferred Stock?
Stock that gets paid dividends first
Over the last 30 years or so, which investment produced the highest percentage returns?
Stocks
Over the last 90 years, which investment produced the most volatile returns?
Stocks
Wall Street is the home of the ___?
Stocks
What invention helped give rise to the NYSE
Telephone
What was the biggest event leading to stocks being the most frequently traded security type on the exchange?
The Industrial Revolution
How can you find stock news about any company?
The Quotes page on HowTheMarketWorks
Which of these buildings have NOT been located on Wall Street?
The Supreme Court
What does a Stock Quote represent?
The last price a seller and buyer agreed to to make a trade
In the late 1800s, what factors led to the growth of the NYSE?
The need for funds to finance new companies and build railroads
What is the "Dividend Yield"?
The percentage of the stock's price that is paid out in dividends per year
Which of these items can you find in a stock quote?
The stock's current daily volume
What is "Net Change"?
The total amount a stock's price has changed since the previous trading day
Which is a characteristic of open-ended mutual funds?
They are tied to a stock index and not actively managed
How do you invest in stocks?
Trade money for stock
Where can you find the "Sectors" tab?
Under the "Markets" Section
Young city's investors would meet here to trade Revolutionary___?
War bonds
The NYSE stock exchange is the largest in the?
World
Which is one major advantage of Mutual Funds?
You have a fund manager so you do not need to constantly monitor your investments
What is another name for the Dow Jones Industrial Average?
a. "The Dow" b. The "DJIA" *d. Both A and B*
When traders use the term "ideas," they can mean what?
a. One- off trades c. High term trades *d. A and C*
How is the Dow Jones Industrial Average calculated today?
a. Stocks with higher share prices are given a greater weight in the index. c. The divisor for the Dow is adjusted as additions and subtractions (such as mergers and stock splits) have been made to the index. *d. Both A and C*