Economics Ch. 3 Quiz#1

Steps to Purchasing Stock: 1) ... 2)... 3)... 4)... 5)...

1) you call a broker 2) the broker calls a person in the floor of the exchange, probably an employee of his 3) the floor broker ford to the area allotted for that particular stock 4) he buys the desired amount of the stock from the company 5) he reports it on the floor, and then back to your brokerage house. The stock is yours.

The former name of the curb traders; in began in 1908

American Stock Exchange

Which stock exchange is described below? This exchange began in 1908. It was originally called the "curb exchange" and emerged to sell the stocks not considered reliable enough for other exchanges.

American Stock Exchange

A financial weekly publication which features information in buying and selling stocks

Barron's

People will subscribe to publications such as __________ and the _____________, to get info in investing more wisely.

Barron's and the Wall Street Journal

The very first stock exchange was created in 1531 in Antwerp, ____________

Belgium

In the early days of our nation the Colonial Government was looking for a way to finance its wartime operations, so it sold ___________

Bonds

Work for the shareholder done by the broker, such as selling and buying stock

Broker services

When selling your stock, you would call the broker and the process would go almost the same way. The broker deducts his ____________ and then pass the money on to you

Commission

Offers significant discounts for conducting purchases over the Internet

Discount brokerage

True/ False Traders would often meet on what is known as a farmers market area known as Fisherman's Wharf in NY

False

Your broker tells someone to buy 6 shares of Mattel stock for you. The person he is talking to is called the floor broker and the transaction takes place on the ___________________

Floor of the stock market

Started in the mid-19th century; financial emphasis moved from farming to manufacturing

Industrial Revolution

The largest of all American Stock Exchanges ; created in 1792

New York Stock Exchange

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 _____________ is a statement explaining the plan of a business or financial endeavor, including the financial status, the officers, recent performance, and the profits that an investor may realize

Prospectus

Jim received a copy of a new radio station being proposed in his town. Within the info 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 a _____________

Prospectus

A broker is the person who will do the actual _______________ if the stocks for you

Purchasing

A unit of the equal parts of the capital stock divided by a corporation

Share

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 aid the desire to own a _________ in the business.

Share

One who owns shares of a business on the stock exchange

Shareholder

Mattel, as well as thousands of other companies, offers the opportunity to buy a part of their company by selling _______

Shares

A place where financial securities are bought and sold

Stock Exchange

From its humble origins of the 1700s, the ______________ in America has grown to be a major financial force in the world today

Stock market

A device which gives constant updates on the activity of the NYSE

Stock ticker

What is a composite index of stock prices representing 30 of the nations largest companies?

The Dow Jones Industrial Average

The floor broker purchases your 6 shares of Mattel stock and them reports the trade to the floor. That means that hundreds of computers over the NYSE have recorded your _______________

Transaction

True/ False The NYSE began with a handful of men standing in from of a buttonwood tee near the Trinity Church in East Manhattan shortly after the American Revolution

True

True/False When you purchase a share, you have purchased a little piece of the company.

True

True/False England's first Stock Exchange originated in 1773

True

True/False The New York Stock Exchange is also known by its initials, " NYSE"

True