STOCK exchange day 2

Stock is a share of ______________ of a company

• ownership
• debt
• liabilities
• expenses

Risk means

• Possibility of loss or damage
• Always results in profit
• Guaranteed success
• No chance of failure

No matter how few stocks a person owns they still are a partial

• Owner of the company
• Employee of the company
• Creditor of the company
• Manager of the company

A company sells stock in order to

• Buy office supplies
• Pay employee salaries
• expand or earn more money

• Increase the CEO's salary

When the stock is sold to the public it is called

• Called a private offering
• Called an initial public offering
• Called a secondary market transaction
• Called a bond issuance

You receive part of the companies profits called

• Salary
• Bonus
• Dividends
• Interest

Why do stockholders have limited liability?

• Because they are not personally responsible for the company's debts
• Because they have paid for their shares in full
• Because they are protected by the company's insurance
• Because they have a special agreement with the company's creditors

Which people have the lowest risk tolerance

• young person with a rocky income

• Young person with a stable income

• 45 year old man with so/so stability

• 60 year old financially stable

Which one let's you attend board meetings

• Common Stock

• Preferred Stock

They sell stocks in lots of

• 100
• 10
• 1000

• 5