Virtual Business Final Exam 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 tools does HowTheMarketWorks have to help you choose stocks?
-suggested stock lists -current market news -research tools with company information and quotes
What does a stock represent?
A percentage of ownership of a company including assets and profits
What is a Mutual Fund?
A pool of securities you can buy as an investment
Which event had a part in The Great Depression?
Black Thursday
How are stock prices determined?
By a continuous auction process between buyers and sellers
Who invented the Dow Jones Industrial Average?
Charles Dow
What is Bid Price?
Highest price a buyer is willing to pay for the stock
What is a disadvantage of Mutual Funds?
Mutual funds can have maintenance fees regardless of fund performance
What was the name of New York City when Wall Street was first built?
New Amsterdam
Where is Wall Street?
New York
When traders use the term "ideas," they can mean what?
One-off traders & High term trades
What's the best way to invest in stock?
Practice
The Dow Jones Industrial Average is a(n) _
Price-weighted index
Over for the last 30 years or so, which investment produced the highest percentage returns?
Stocks
Wall Street is the home of the_
Stocks
How is the Dow Jones Industrial Average calculated today?
Stocks with higher prices are given a greater weight in the index & The divisor for the Dow is adjusted as additions and subtractions (such as mergers and stock splits) have been made to the index
What invention helped give rise to the NYSE?
Telephone
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 make a trade
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
What does it mean to "Diversify" your portfolio?
To hold more than 1 stock & For your stocks to not be all in the same area of the economy
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
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?
"The Dow" & The "DJIA"
How can you tell what professional stock analysts recommend?
-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 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
Who is the Dow Jones Industrial Average named after?
Charles Dow and Edward Jones
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 one difference between Mutual Funds and ETFs?
Mutual Funds cannot be day-traded
Where did traders in New York originally meet?
Outside near a buttonwood tree
What is Preferred Stock?
Stock that gets paid dividends first
Over the last 90 years, which investment produced the most volatile returns?
Stocks
What was the biggest event leading to stocks being the most frequently traded security type on the exchange?
The Industrial Revolution
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
The NYSE stock exchange is the largest in the site?
World