economics- stock market test
What is the Dow Jones Industrial Average?
(DJIA) is the most widely followed barometer of day to-day stock market activity.
what are the 3 different stock exchnages?
- New York stock exchange (NYSE) - National association of securities dealers automated quotations system (NASDAQ) - American stock exchange (AMEX)
what is buy low, sell high?
Buy when the price is low [Invest wisely within your means] (Not a lot of money) and sell when the stock is doing really well. Make sure to stay in touch with what's happening with the market.
How does NASDAQ (National Association of Securities Dealers Automated Quotations system) Work?
It uses reliable computer systems to handle the exchange of stocks between buyers and sellers.
what is OTC?
Over-The-Counter Market (OTC) is a stock market in which trading is almost exclusively done through dealers who buy and sell for their own investors. (NASDAQ is often called and OTC)
What are Bid Prices?
The Bid Price is the price dealers pay the investors - the price investors receive from the dealers
what is "spread"?
The difference between the bid and ask prices is called the bid-ask spread (or just spread)
what is NASDAQ (National Association of Securities Dealers Automated Quotations system)?
a computer network of dealers who distribute timely security price quotes to its subscribers. It's the place where people go to buy and sell shares of stock.
what is a bear market?
a condition in which securities prices fall and widespread pessimism causes the stock market's downward spiral to be self-sustaining.
what is a bull market?
a financial market of a group of securities in which prices are rising or are expected to rise.
what is a stock symbol?
a stock symbol is something that usually consists of many letters and numbers or a combination of both.
what is a ticker symbol?
an abbreviation used to identify publicly traded shares of a particular stock on a particular stock market
What is the Standard and Poor's 500 Index?
another barometer of day-to-day stock market activity. The S & P 500 is a daily index of stock prices of 500 specific corporations in the United States
how is AMEX different than the other 2 exchanges?
it began before the civil war. it has a smaller base of corporations, it is too small for the NYSE and NASDAQ
barometer
measures the stock prices
what are ask prices?
the price dealers receive from investors - the price investors pay dealers
who receives funds from the IPO? when?
the proceeds from the first day of official sale goes directly to the company. From the second day onwards the proceeds of the sale of company stocks go directly to the shareholders, general public, stock brokers and NOT directly back to the company that issued the stock.
what is an initial public offering (IPO)?
when a company offers its stock for sale to the public for the first time
