Stock Market Crash
What year was the most well known stock market crash?
1929.
What usually sets the prices on a stock exchange?
Supply and Demand.
What is a share/stock?
A share in ownership of a company.
What is a dividend?
Money that a company pays to it's shareholders from the profits it makes.
What is the main reason companies issue stock?
To raise money without having to pay money back or give interest payments like through a loan.
What stock market crash affected the real estate market mostly?
The 2008 economic crash.
What is the largest stock exchange in the world? What country is it located?
The New York Stock Exchange (NYSE), United States of America.
What is a margin call?
A request for funds from a broker when money must be added to a margin account to meet minimum capital requirements.
Who is often considered to be the greatest investor in modern times?
Warren Buffet.
What does IPO stand for?
Initial Private Offering.
What was the worst day of the Great Depression later referred to as?
Black Tuesday.
Is the S&P 500 a mutual fund or an Index?
An Index.
What market are stockbrokers?
Primary Market.
What are two major types of stocks a shareholder can buy?
Common Stocks. Preferred Stocks.
How often is a public company required to report it's profits?
Quarterly. Every 3 months.
How many shares were traded on October 24th, 1929 (Black Thursday), in New York.
Over 13 Million (16 Million).
What are the three largest stock exchanges in Canada?
Toronto Stock Exchange (TSX), TSX Venture Exchange, Montreal Exchange.
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.
In the NYSE, companies cannot fall below a certain price per share for longer than a month, what is this price?
$1 per share. If a company goes under this for longer than a month, then they will begin the delisting process.
What asset did most people buy during the Great Depression?
U.S. Savings bonds.
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 are short term investments known as?
Marketable securities
How much money did stockholders in New York lose on October 29th, 1929?
Over $14 billion.
What company has the highest price per share in the world? Who is it lead by?
Berkshire Hathaway. Lead by Warren Buffet. At $400,000 per share.