stock market and investing test review!! (test on 3/8)
when was the NYSE founded?
1792
when was the NASDAQ founded?
1971
who founded the NYSE?
24 stockbrokers
3 S&P stocks
CVS health, facebook, paypal
what is the second largest stock market in the US?
NASDAQ
what is the largest stock market in the US?
NYSE (new york stock exchange)
mutual funds
a collection of stocks, bonds, and other securities
what is the most common security in a retirement account?
a mutual fund
what is a stock market?
a place where stocks are bought and sold
dividend
a share of the company's profits paid by the company to stockholders
stock
a tiny piece of a company that a person owns
security
a tradable financial asset
what is considered the least risky investment?
bonds
what street is the NASDAQ on?
broadway
bonds
certificates sold by companies or the government to raise money
3 dow jones stocks
coca-cola, mcdonalds, microsoft
what helps investors reduce risk by investing in a variety of securities?
diversification
know 3 dow jones stocks and 3 S&P stocks that DO NOT overlap
examples you CANNOT use: the 3m company, apple, chevron, JPmorgan chase, nike
do private or public companies sell stock?
public companies
most americans are invested in mutual funds through their ___________________ fund.
retirement
what are the two most common ways for a stockholder to make money from stocks?
sell them high, collect dividends
which category of stocks is the riskiest and why?
small cap stocks because the chance of these companies failing is greater than a larger company
what are the three categories of stocks?
small cap stocks, mid cap stocks, large cap stocks
large cap stocks
stock in companies with a market value more than $10 billion
mid cap stocks
stocks in companies with a market value between $2 billion and $10 billion
what are mega cap stocks?
stocks in companies with a market value of more than $200 billion
small cap stocks
stocks of companies with market values of less than $2 billion
what are the three most common types of securities?
stocks, bonds, and mutual funds
what type of stocks is the NASDAQ known for?
tech stocks (microsoft, apple, amazon, etc.)
which stock market is more volatile and why?
the NASDAQ is more volatile because it has numerous smaller companies listed
what is the benefit of investing in a mutual fund?
the investor gains instant diversification
what does the dow jones industrial average track?
the stocks of 30 well-known large cap companies
what does the S&P 500 track?
the stocks of 500 large cap US stocks that are the most widely held by investors
what is the most common way americans invest in the stock market?
through retirement accounts (401(k), 403(b), roth IRA)
what is the primary reason a company would go public and sell stocks?
to raise money to reinvest into the company to help it grow
what street is the NYSE on?
wall street
what type of stocks is the NYSE known for?
"blue chip" stocks
what percentage of americans don't have investment in stocks?
45%
what percentage of americans have investments in stocks?
55%
which of the two largest stock markets is the oldest and during whose presidency was this stock market founded?
NYSE; george washington
diversification
helps investors reduce risk by investing in a variety of securities
which category of stocks do mega cap stocks fall into?
large cap stocks
which category of stocks is referred to as "blue chip" stocks?
large cap stocks
which category of stocks will most likely offer dividends?
large cap stocks
what three criteria are used to mark a stock as a "blue chip" stock?
leader/top of their industry, well established, household name (starbucks, disney, nike, etc.)
what city are the NYSE and NASDAQ located in?
new york city
