Market Terms

a place where stocks and bonds are sold

• coporation

• bull market

• bear market

• stock exchange

When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.

• dividend

• asset

• stock

• bankrupt

What is represent for A in the white circle?

• Funds

• Financial markets

• Indirect finance

• Financial intermediaries 

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.

Label the continuum of market structures.

a

b

c

d

Oligopoly

Pure Competition

Monopolistic Competition

Monopoly

Match statements below to the market to which it most closely relates. (Must be placed in alphabetical order.)

a

c

d

f

i

g

h

e

j

b

Most price control for buyers

Potential for collusion

Similar products

Benefits sellers

Most price control for sellers

Highest prices

Benefits buyers

Most common type of market

Lowest prices

Similar products with higher prices

Answer explanation

StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion that included Bumble Bee Foods and Chicken of the Sea. A federal judge in San Francisco ordered StarKist to pay a $100 million fine in a canned tuna price-fixing conspiracy involving the industry's top three companies.

Match statements below to the market to which it most closely relates. (Must be placed in alphabetical order.)

a

c

d

f

i

g

h

e

j

b

Potential for collusion

Most price control for buyers

Lowest prices

Similar products with higher prices

Similar products

Most price control for sellers

Benefits buyers

Highest prices

Benefits sellers

Most common type of market

Answer explanation

StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion that included Bumble Bee Foods and Chicken of the Sea. A federal judge in San Francisco ordered StarKist to pay a $100 million fine in a canned tuna price-fixing conspiracy involving the industry's top three companies.

someone who lends or gives money in hopes of making a profit

• portfolio

• stockbrocker

• shareholder

• investor

A time when stock prices are falling

• bull market

• transaction

• bear market

A person who buys or sells equities for his or her clients is a

• Insurance agent

• financial advisor

• stockbroker

• accountant