Unit 8: Questions

If you want to get the actual number of stocks traded, simply multiply the volume number by ( )

100

( ) was the year in which the Stock Market crash started the Great Depression after an incredible plunge which made millionaires poor in the space of hours

1929

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

1929 crash

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

1932, 89

"The Curb Exchange" continued to grow and was renamed the American Stock Exchange, also known as ( )

AMEX

The very first stock exchange was created in 1531 Antwerp, ( )

Belgium

( ) 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

Give two examples provided that represent a blue chip stock: ( ) and ( )

Boeing and AT&T

After the ( ), Wall Street became more important and the New York Stock Exchange was getting all the business it could handle

Industrial Revelation

A floor ( ) is just like the people you see on the news clips on television when they show a bunch of people frantically waving their arms and dropping paper all over the floor

broker

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

cash

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

cautious

A ( ) is similar to a rise in the market and signifies a good time to buy if you are looking to purchase stocks

climb

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 directly affect the ( ) stock. You get a high chance of making a profit with ( ) stock.

common

Another question to ask yourself is: How has the company been doing against is ( )

competition

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

day

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

dividend

A price-earnings ratio is figured out by calculating the relationship between the price of the company's stock and the ( ) 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 call a broker and arrange to buy stock, the broker calls a person on the floor of the exchange, probably an ( ) of his

employee

What are for names for a stock?

equities, securities, issues, and shares

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 ( ) of the New York Stock Exchange

floor

When you enter the business world of purchasing stocks, you must realize that this not ( )

gambling

The activity of 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 ( )

hundreds

One of the first rules that almost any investor will tell you is: Do not invest any money that you can't afford to ( )

lose

When reading the 52 weeks high and low, the greater the ( ) between the two numbers, the greater the ( ) for the stock to gain or lose money for the investor

margin, risk

In order to get a professional to purchase stocks and control the money given to him, millions of people purchase ( )

mutual funds

Some of the stocks offered to get on the NYSE were ( ) to be put in the NYSE, so a brisk business was running outside on the curb of the street

not good enough

A standard unit of value in the stock market is a ( )

point

A question to ask before you invest any money is: Is the company making a ( ) or service that somebody wants?

product

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

profit

Jim receives a copy of a plan for a new radio station being proposed in his town. Within the information he learns the potential for profits, the risk involved, and how much capital is needed in order to become a shareholder. Jim is looking at ( )

prospectus

A broker is the person who will do 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 now yours

report, house

In our story about purchasing stocks, the broker tells you, "Well, right now a share in Mattel Toys is going for 10 dollars, 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 ( )

share

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

share

When you buy stock, you will be referred to as a shareholder or ( )

stockholder

The floor broker purchases your 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

True or False: A preferred stock is a financial return that has a set limit

true

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 profit grow and that is a good sign for investing

true

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

true

True or False: Standard & Poor's 500 is a type of stock index favored by professionals because it includes a far wider range of public companies than the Dow Jones industrial average does

true

True or False: The S&P list contains the 500 largest publicly held companies

true

True or False: Your portfolio is all of the various stocks or bonds that you, as an investor, hold

true

The 52 weeks high and low will tell you about the ( ) of a stock. If the numbers show little difference between each other, there

volatility

Look closely at the volume number- of a tiny ( ) is shown before the number, the volume is not given in hundreds but is the actual number of stocks traded

z