INTRODUCTION TO THE STOCK MARKET



Name:___________________________ Period: ___ Date: _____________429831591440 Stock Market BasicsWhat is the definition of a stock? What is the definition of a bond?Explain the difference between buying a stock and buying a mutual fund: Buying a stock is buying an interest in only _________ company. Buying a mutual fund is buying an interest in __________________________________________What are two of the advantages of mutual funds?93726088900______________________________________________________________________00______________________________________________________________________5715005016593726049530______________________________________________________________________00______________________________________________________________________57150031115What are two reasons companies issue stocks?93726088900______________________________________________________________________00______________________________________________________________________57150050165937260149225______________________________________________________________________00______________________________________________________________________57150083820Why do people buy stock?Generally, stocks provide a higher return than other investments. We can also say that the higher the rate of return, the higher the risk, so what can you say about the risk of investing in the stock market? Is it very risky or not very risky?Ways the stock value can change:115570117475______________________________________________________________________00______________________________________________________________________018345150126301506915150120015If you had 500 shares of stock worth $12.00 a share, how much would your total investment in the stock be? (Hint: number of shares X value per share) $___________If the stock split 2 for 1, how many shares would you have after the split? $_______What would the stock price per share be after the split? $___________What would be the value of your total investment in the stock be after the split? $________480060059055Beta value measures a stock’s ______________________________ compared to overall changes in the stock market.If a stock has a beta value of 1.5 and the market goes up 10%, by what percentage would you expect the value of the stock to rise? (Hint: market percentage increase X beta value) ________%If the beta value is 2.0 and the market goes up 10%, by what percentage would you expect the value of the stock to rise? ________%187325149225When interest rates go up, what generally happens to stock prices?______________________528637515240If a business is doing poorly, what generally happens to stock prices?________________________________If a company has too much debt, what generally happens to stock prices?____________________________If the stock market as a whole goes up, what generally happens to stock prices?____________________________The year-to-date percent change on a stock quote shows the change in stock prices since what date?_____________________The 52-week high & low shows price changes during what period of time?____________________What is a ticker symbol?________________________________________________What does dividends per share tell you?________________________________________________What is price/earnings ratio?________________________________________________If the volume on the stock quote reads 120, how many shares of stock were actually traded?_________________The high and low shows price changes during what period of time?__________________________What is the close price?_______________________________________What is the net change?_______________________________________Fill out the following information for a stock quote from Yahoo finance.866775258254400901700219011400865505258127400384492535579040043414953209289005905032019304406900293941400440690029394140033985202834639002349500325056400162941029343340059050420207716294102934334001628775292925400590504196508867410257746400590503184980867410256603400590503202565902970218566900590503202565902970218566900902970170560900902970141858900820420106108400589915202565Stock Indexes: What does the DOW track?471995578740What does the S&P 500 track?Which is more accurate—the DOW or the S&P?Why?What kinds of stocks are traded on the NASDAQ?2004060-5334025. What does a bull market mean?______________________________________26. What does a bear market mean?______________________________________4761865140970What is a broker?Stock Exchanges:What is a stock exchange?Name three characteristics of the New York Stock Exchange:826135154305_____________________________________________00_____________________________________________457200533404572000220980826135248920_____________________________________________00_____________________________________________457200162560784860221615_____________________________________________00_____________________________________________4572001682754914900137160Name two characteristics of the American Stock Exchange:784860140970_____________________________________________00_____________________________________________34480551435749300113665_____________________________________________00_____________________________________________34861532385 What is a regional stock exchange?Name two characteristics of the NASDAQ:890270141605_____________________________________________00_____________________________________________457200717554572001003308902702540_____________________________________________00_____________________________________________The stock exchange is organized based upon the laws of ___________________ and __________________________.If demand for a stock is high, the price will probably go ___________ because _________________________________________.If demand for a stock is low, the price will probably go ____________ because _________________________________________.Simply investing in the stock market will not guarantee that you will make money. There are over _________________ individual stocks and ________________ mutual funds.Some suggestions to pick stocks are:Buy stocks in a company that you _________________________________________Suggestions (___________________) from people who are already investing.Suggestions from a ________________________________________It is very risky to _________________________________________________________ Diversification means that you ______________________________________________Name four Internet sites where you can go to get stock information: ................
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