TED-Ed: Oliver Elfenbaum: How does the stock market work?
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Business, Life Skills
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KG - University
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What was the primary reason the Dutch East India Company sold shares to private citizens?
To compete with other companies
To reduce the number of ships in their fleet
To fund their expensive voyages
To avoid paying taxes
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the first step a company takes when it decides to go public?
It opens new branches
It reduces its workforce
It advertises itself to big investors
It starts selling products online
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does an increase in stock demand affect the stock price?
The stock price decreases
The stock price becomes unpredictable
The stock price remains the same
The stock price increases
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What can cause a company's stock price to fall?
An increase in production technology
A new product launch
A rise in investor confidence
A decrease in demand for its stocks
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why do most professionals recommend long-term investing?
Because it guarantees quick profits
Because it is less affected by market noise
Because it requires less initial investment
Because it is only for the rich and powerful
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