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Stock Market Terms

Stock Market Terms

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Stock Market Terms


1. What does supply and demand for a stock change about the stock?commission

A price B people

C control


2.


If there is a low demand for a stock the price of that stock will ...

A *Fall B Can't determine

C Rise D not Change


3. What is NASDAQ?

A What stocks are called when they are bought and sold

B An automated system for trading stocks

C Certificates certifying you own a stock D The biggest stock market in the world


4. Commission on stocks are paid to who?

A Stock market B Stock holder

C Stock broker D Stock exchange


5. Why are stock symbols used instead of company names?

A Accuracy and Convenience of use

B new computers would not accept large company names

C Stock brokers continued to make mistakes D Investors demanded it


6. What is the primary reason why companies issue stocks?

A To guarantee the success of a new product

B To provide for their employee's retirements

C To ensure a stable market D To raise extra money for the company


7. What are stock shares?

A Certificate showing a company's income B Certificate showing a company's dividends

C Certificate showing a company's retirement system

D Certificate showing partial ownership of a company


8.National Association of Securities Dealers Automated Quotations,

or NASDAQ,

A uses ebay to help make the trades

B uses a computer automated system for trading

C uses stockbrokers in conjunction with the Dow to make trades

D uses the same trading system as the NYSE.


9. What is the goal of an investor?

A Open a new investment account B Keep a stock for their entire life

C Buy low and sell high D Help a company get bigger


10. The S&P 500 is a stock exchange in Chicago of 500 random companies.

A True B False


11. Where are some other stock exchanges?

A Los Angeles, San Francisco, and Atlanta B Buffalo, Athens, Lawrenceville

C Chicago, Las Vegas, Detroit D Boston, Chicago, and San Francisco


12.

A bull market is

A When the market is doing bad B When the market is going steady

C When the market is rapidly unchanging D When the market is doing good


13.

When the American Revolutionary War began, the Colonial government was in need of _______? So they began to selling bonds

(a type of stock).

A Gold B Oil

C Cash D Land


14. In 1792, twenty-four merchants signed an agreement that started the ______ ?

A NASDAQ B New York Stock Exchange

C DOW Industrial Average D S & P 500


15. Why does a company decide to issue stocks?

A It needs to raise a lot of money very quickly for growth.

B It wants to take on new debt

C It needs more expenses D It wants to look better to investors


16. The NYSE is an exchange where daily auctions (the biding of stocks) determine the price for thousands of different stocks.

A True B False


17.


The Dow is the top

A 25 companies in their industry B 50 companies in their industry

C 500 companies in their industry D 30 companies in their industry


18. Stocks are a share of ownership in a company and a person who owns one or more shares of stock is called a ...

A Broker B Securities

C Dividend D Stock Holder


19.

What is a stock?

A A part of a share of showing profit in a company

B A document that represents ownership in a company

C A document that states you are worth a lot of money

D A person who buys things for you


20. How far back can stocks be traced?

A 1901 - 100 years ago B American Revolution - 200 years ago

C 1970 - 80 years ago D California Gold Rush - 100 years ago


21. What ultimately determines the price of a particular stock?

A Supply and Demand B Shares

C Parents D Computers


22. What type of tree was it that a group of investors begin to sell stock under.

A Peach B Elm

C Oak D Button


23.

A bear market is

A When the market is rapidly unchanging B When the market is doing good

C When the market is doing bad D When the market is going steady


24. When you buy a stock, most of the money goes towards...

A Most of the fees associated with the New York Stock Exchange. B

A large part of the government agency that oversees all stock market transactions.

C The paper that the certificate is printed on.

D A part of everything that the company owns like buildings, chairs, computers.


25. If lots of people decide to sell the same stock and few people want the stock, the price of that stock will likely...

A Rise B Fall

C Unchange D depends on prices


Answer Key

1. a 2. a 3. b 4. c

5. a 6. d 7. d 8. b

9. c 10. b 11. d 12. d

13. c 14. b 15. a 16. a

17. d 18. d 19. b 20. b

21. a 22. d 23. c 24. d

25. b

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