Stock Exchange
What usually sets the prices on a stock exchange?
Supply and Demand.
What is an IPO?
Initial Public Offering (when the company becomes public)
What is a dividend?
Money that a company pays to its shareholders from the profits it makes.
What is the main reason companies issue stock?
To raise capital without incurring debt, to help finance growth, to pay off debt, fund new projects.
What are the three largest stock exchanges in the world after the NYSE and the Nasdaq?
Shanghai Stock Exchange, Japan Exchange Group (Tokyo Stock Exchange), Hong Kong Stock Exchange / Euronext.
What is the P/E ratio?
The price–earnings ratio is the ratio of a company's share price to the company's earnings per share.
What are two major types of stocks a shareholder can buy?
Common Stocks. Preferred Stocks.
What is insider trading?
It is when one with access to non-public, price-sensitive information about the company buys, sells, or deals shares of the company, or counsels to do so.
What is Euronext?
What countries does it operate in (8)?
Euronext is a European stock exchange operating in France, the Netherlands, Belgium, Ireland, Portugal, Italy, Greece and Norway.
What time zone is used for trading hours in North America?
Eastern Time. Even if you enter trades with an online brokerage outside of trading hours, it will only be entered once the hours are open.
What is the average stock market return? In percentage. As measured by S&P 500.
10% return per year.
How often is a public company required to report it's profits?
Quarterly. Every 3 months.
What was the first company to introduce the buying and selling of stocks?
And when or where?
The Dutch East India Company, 1611, Amsterdam.
What is a bull market?
What is a bear market?
A bull market occurs when stock prices rise, and investor optimism is high. A bear market occurs when stock prices fall and investor pessimism dominates.
What company has the highest price per share in the world?
Who is it lead by?
Berkshire Hathaway Inc. led by Warren Buffet around $750,500 per share.
What is the Dow Jones Industrial Average?
Name 5 companies it tracks.
The Dow Jones Industrial Average, often just called the Dow, is a stock market index. It tracks 30 of the largest and most influential companies in the United States.