Podcast
Questions and Answers
What is the primary reason companies sell shares through IPOs?
What is the primary reason companies sell shares through IPOs?
- To decrease the market demand for shares
- To lower the value of existing shares
- To raise capital for growth and expansion (correct)
- To increase the number of shareholders
What is the main purpose of a stock split?
What is the main purpose of a stock split?
- To decrease the number of available shares
- To increase the value per share
- To make shares more affordable to investors (correct)
- To stabilize daily fluctuations in stock prices
How do stock values generally respond to company growth?
How do stock values generally respond to company growth?
- Depend on the company image
- Decrease in value
- Stay stagnant
- Increase in value (correct)
Which factor can influence stock prices based on the information provided?
Which factor can influence stock prices based on the information provided?
What role do stock exchanges like NYSE and Nasdaq play in the global stock market?
What role do stock exchanges like NYSE and Nasdaq play in the global stock market?
What distinguishes common stocks from preferred stocks?
What distinguishes common stocks from preferred stocks?
How can an individual invest in the stock market?
How can an individual invest in the stock market?
What determines the price fluctuations of stocks in the market?
What determines the price fluctuations of stocks in the market?
Why do companies sell stocks through initial public offerings (IPOs)?
Why do companies sell stocks through initial public offerings (IPOs)?
What is one advantage of investing in the stock market over keeping money in a bank account?
What is one advantage of investing in the stock market over keeping money in a bank account?
Why is research considered essential before investing in stocks?
Why is research considered essential before investing in stocks?
Study Notes
- Stock market is a global network where securities are traded, representing ownership in companies.
- Companies sell shares through IPOs to raise capital for growth and expansion.
- Stock exchanges like NYSE, Nasdaq, TSX, NSE, and JPX facilitate trading globally.
- Share values reflect company performance; growth increases share value.
- Stock splits occur when share prices become too high, making shares more affordable.
- Example: Apple had multiple stock splits, increasing number of shares while lowering individual share price.
- Stock prices can be influenced by factors like company image, supply and demand, leading to daily fluctuations.
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Description
Explore the fundamentals of the stock market, including how companies raise capital, the role of stock exchanges, factors influencing stock prices, and the impact of stock splits on share values.
