18 Questions
What is a common way to make money in the stock market?
Stock price goes up and you sell
What is the purpose of dividends in the stock market?
To provide a steady income for shareholders
What does it mean when it is said 'not all companies pay dividends'?
Companies have different strategies regarding distributing profits
How does diversifying your investment portfolio help manage risk?
By spreading investments across different assets
Which type of investment involves buying a small piece of ownership in a company?
Stocks
What is the primary purpose of short quiz and pop quiz mentioned in the text?
To evaluate students' knowledge on market trends
What does a Bull Market represent?
Stock prices are rising and the economy is doing well
In a Bear Market, what is the general sentiment about the economy?
The economy is bad and a recession is looming
What does '52-Week Hi and Low' refer to in a stock table?
The highest and lowest prices at which a stock has traded over the past year
What does 'Price/Earnings Ratio' indicate in finance?
The current stock price divided by earnings per share for the last four quarters
What does 'Net Change' represent in a stock table?
The net change from the previous day's closing price
What aspect of a stock does 'Dividend Per Share' highlight?
The annual dividend payment per share
What is the main difference between Common Stock and Preferred Stock?
Common Stock offers one vote per share, while Preferred Stock may not include voting rights.
What is the advantage of holding Blue Chip Stocks in a portfolio?
They are less volatile and generally considered stable investments.
In the context of stocks, what does it mean to be a 'residual owner'?
The owner has the last claim on the company's assets and earnings.
What distinguishes Primary Markets from Secondary Markets in the context of the stock market?
Primary Markets involve creating new stocks, while Secondary Markets involve trading existing stocks.
What is the main distinction between Short-term and Long-term investments in the stock market?
Short-term investments last up to 2 months, while Long-term investments last more than 9 months.
Why do companies not directly participate in the buying and selling of their own stock?
To prevent market manipulation and ensure fair trading practices.
Learn about making money in the stock market through capital gains and dividends. Discover how stock price movements and dividends drive profits for shareholders.
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