Understanding the Stock Market Basics
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Questions and Answers

What is the main purpose of companies issuing shares on the stock market?

  • To raise capital for their operations and growth (correct)
  • To generate returns for brokers
  • To decrease the value of the company's stocks
  • To provide regular income to investors
  • What is the main goal of investors in the stock market?

  • To provide capital to companies
  • To disrupt the trading process
  • To buy shares at a lower price and sell them later at a higher price (correct)
  • To decrease the value of the company's shares
  • What is the role of brokers in the stock market?

  • Generating returns for companies
  • Facilitating trades between buyers and sellers for a fee (correct)
  • Issuing shares to raise capital
  • Providing regular income to investors
  • Which term refers to the organized platforms where buying and selling of shares happen in the stock market?

    <p>Exchanges</p> Signup and view all the answers

    What is the main purpose of common stock in the stock market?

    <p>To raise capital for companies</p> Signup and view all the answers

    What is the main purpose of a stock market?

    <p>To provide a platform for companies to issue shares and raise capital</p> Signup and view all the answers

    What is the primary goal of investors in the stock market?

    <p>To buy shares at a lower price and sell them at a higher price for a profit</p> Signup and view all the answers

    What are some company-specific factors that can influence the value of a stock?

    <p>Financial performance, such as strong earnings and revenue growth</p> Signup and view all the answers

    Who are the main participants in the stock market?

    <p>Companies, investors, brokers, and exchanges</p> Signup and view all the answers

    What is the role of exchanges in the stock market?

    <p>Organized platforms where buying and selling of shares happen</p> Signup and view all the answers

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