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

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

• stock market
• shareholder
• portfolio
• industry

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

• TRUE
• FALSE

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.

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

Tags

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.