Investing for Beginners

What is the process called when a company sells parts of itself (shares) to the public to raise money?

• Stock Exchange

• Initial Public Offering

• Dividend Distribution

• Market Capitalization

How many shares did Facebook initially offer during its 2012 IPO, and at what price per share?

• 421 million shares at $45 per share

• 337 million shares at $38 per share

• 84 million shares at $20 per share

• 16 billion shares at $38 per share

In theory, what right does an individual gain by purchasing a stock in a company?

• The right to manage the company's daily operations.

• The right to receive a portion of the company's profits.

• The right to veto decisions made by the Board of Directors.

• The right to immediately sell the stock for a higher price.

What is the primary purpose of a stock split, as demonstrated by Apple's 2014 action?

• To increase the overall value of the company.

• To make shares more affordable and accessible to a wider range of investors.

• To reduce the company's net income.

• To consolidate shares into fewer, more expensive units.