Lesson 58 - unit 12 Flashcards
What is a stock market?
A real or virtual place to buy and sell stocks.
What is the largest actual stock market in the world?
The New York Stock Exchange.
What are said to be the 2 main emotions driving the buying and selling of stocks?
Fear and greed.
What is the most reliable way for a non-professional to invest in the stock market?
Invest in a mutual fund.
What is the Dow Jones Industrial Average?
It takes the stock values of a few key companies and uses a formula to determine a cumulative value for those stocks.
What is the NASDAQ?
The National Association of Securities Dealers Automated Quotations. It is an electronic stock market.
What is the S&P 500?
The Standard and Poor 500 is a stock index of 500 companies traded on the NYSE or NASDAQ.
What is a commodities exchange?
A specialized market where commodities such as farm products, energy sources, and metals are bought and sold.
What is a futures contract?
An agreement for a speculator to buy a commodity from a producer at a specified time in the future for a price set today.
How is the stock market a good indicator of economic activity, and how is it an incomplete indicator?
It is a good indicator of the success of large companies, but it is a less broad and accurate reading of the overall economy.
