Stock Market Common Knowledge

A company owned by families or a small number of investors and do not issue stock to the public.

• public company
• industry
• private company
• portfolio

Stocks represent ownership in a corporation.

• TRUE
• FALSE

Tags

CCSS.RI.11-12.7

CCSS.RI.9-10.7

CCSS.RL.11-12.7

CCSS.RL.8.7

CCSS.RL.9-10.7

A holder or owner of stock in a company or corporation.

• stock market
• shareholder
• portfolio
• industry

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

People who own stocks are guaranteed a return on the money they have invested in stocks.

• TRUE
• FALSE

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CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.8.1

CCSS.RL.9-10.2

You can buy stock in any company in the world.

• True, all companies are required to offer stock.
• False, a company is only listed on the stock exchange if it wants to be.

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.1

CCSS.RL.8.1

CCSS.RL.9-10.2

One way stockholders make money is by selling their stock for more money than they paid for it.

• TRUE
• FALSE

Why does a company issue stock?

• to brag about their profits
• to attract money
• to gain publicity
• because it is required by law

The stock market is a physical place.

• Yes, it's located in most major cities around the world.
• No, trading is all done online.
• Yes and No, there are physical places where stocks are sold, but they are also sold virtually.

The possibility of losing some or all of a particiular investment.

• risk
• index
• industry
• profit

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CCSS.HSS.CP.B.7

CCSS.HSS.MD.A.2

CCSS.HSS.MD.A.3

CCSS.HSS.MD.B.5

The DOW Jones Industrial Average is an index of 30 American companies.  Why is the DOW Jones Industrial Average important?

• It tells Americans how much debt the country is in.
• It helps economists predict when a stock market crash will happen.
• It tells Americans how many jobs are out there.
• It provides a snapshot of how the stock market and the US economy is doing.

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.2

CCSS.RL.8.1

CCSS.RL.9-10.2