Download The Stock Market

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Personal Finance
Stock Market
Lesson 1: The Stock Market
Directions
 Answer all the questions below each question on this Word document.
 Save it as: The Stock Market.
 Put your name in the header.
 All answers must be in complete sentences. Do Not Copy And Paste.
 Go to http://wayback.archiveit.org/3635/20130906093843/http://library.thinkquest.org/3088/stockmarket/introduction.html
 On the left hand side of the screen you should see a menu. Click on “INTRODUCTION,” read
the information on this page and answer any questions below that pertain to this information.
 Continue to click next after each section.
1. How did the Colonial Government, during the American Revolution, raise money to
fund its wartime operations?
2. How was the NYSE created?
3. How was the AMEX created?
4. What are the three major stock exchanges?
5. What is a share?
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6. What is a brokerage house?
7. When you buy stock do you usually get a paper stock certificate?
8. Who actually buys the stocks?
9. What is a Floor Broker?
10. How does a Floor Broker report that they have bought a stock?
11. Describe the simplified process of buying a stock?
12. Define an open mutual fund.
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13. Define a closed mutual fund.
14. What is SEC abbreviated?
15. What is the role of the SEC?
16. What is insider information?
17. Who do SEC rules apply to?
18. What is one rule that applies to investors?
19. What profession has the largest burden of rules from the SEC?
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20. Why is October 19, 1987 a significant date for those involved with the stock market?
21. List one example that affects the value of stocks.
22. What is stock?
23. What two ways can you vote if you are a shareholder?
24. What is a proxy ballot?
25. What is a ballot?
26. What is a penny stock?
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27. What is a growth stock?
28. What is a blue chip stock and give an example?
29. What three questions should you keep in mind before investing in a company?
30. Define common stock.
31. Define preferred stock.
32. Define Stock Split.
33. Define Reverse Split.
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34. What is the one type of corporation you can buy stock in?
35. Define Publicly held Corporation?
36. Define Privately-held Corporation (Closely held).
37. Define fundamental analysis.
38. Define technical analysis.
39. Define broker?
40. List two types of brokers in a brokerage firm.
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41. Define a market order.
42. Define Volatility.
43. Define Short Selling
44. Define Buying on Margin.
45. Define Margin Account.
46. Define Warranty.
47. What's your philosophy on stock tricks? Would you try any of the examples
given? Why or why not?
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48. Define a bull market.
49. Define a bear market.
50. Define a yo-yo stock.
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