Understanding Stocks and Ticker Symbols

This video tutorial introduces the concept of stocks, explaining that owning stock means owning a part of a company. It covers the purpose of issuing stocks, how investors can earn money, and the role of ticker symbols and exchanges. The video also discusses the challenges of identifying companies, brands, private companies, and subsidiaries when investing. Finally, it emphasizes the importance of understanding these concepts before buying stocks.

What does owning a stock represent in terms of company ownership?

• Owning the company's employees

• Owning the company's debts

• Owning a slice of the company's assets

• Owning the entire company

Why do companies issue stocks?

• To increase their debts

• To decrease their market value

• To raise money for expansion and modernization

• To reduce their workforce

What is a ticker symbol?

• A unique group of numbers identifying a stock

• A unique group of letters identifying a stock

• A company's logo

• A company's slogan

Which of the following is an example of a stock exchange?

• NASDAQ

• Google

• Facebook

• Amazon

How can you earn money from stocks over time?

• By giving them away

• By selling them at a higher price than purchased

• By holding them indefinitely

• By selling them at a lower price than purchased

What happens if the stock price is less than what you paid for it?

• Your investment increases in value

• Your investment decreases in value

• You earn dividends

• You gain ownership of the company

What is a common roadblock when searching for a company's ticker?

• Typing in the company's brand name

• Typing in the company's address

• Typing in the company's phone number

• Typing in the company's CEO name

What is a subsidiary?

• A company that is privately owned

• A company that is publicly traded

• A company that is 50% or more owned by another company

• A company that owns other companies

What should you consider before buying a company's stock?

• The company's employee count

• The company's logo

• The company's ticker symbol

• The company's market value

What is the relationship between a parent company and a subsidiary?

• The parent company is owned by the subsidiary

• The subsidiary is owned by the parent company

• They are competitors

• They are independent of each other