Stock market terms (Business gr 10)

Question 1

Bull Market

Answer 1

Most prices on the stock market are rising

Question 2

Bear Market

Answer 2

Most prices on the stock market are falling

Question 3

IPO

Answer 3

Initial Public Offering - The first time a company releases stocks to the public

Question 4

Portfolio

Answer 4

A diverse package of stocks

Question 5

Penny stocks

Answer 5

Stocks that cost less than a dollar

Question 6

Name 5 different examples of sources of income:

Answer 6

1. Employment
2. Self-employment
3. Investments
4. Government transfers
5. Lotteries

Question 7

E.I

Answer 7

Employment Insurance - (the Government will take money off your paycheck)

Question 8

CPP

Answer 8

Canada Pension Plan - (the Government will take money off your paycheck)

Question 9

Name 6 examples of deductions off your paycheck:

Answer 9

1. E.I
2. CPP
3. Private Pension Plan
4. Taxes
5. Union
6. Benefits

Question 10

Where do you buy stocks?

Answer 10

• Online
• Stockbroker
• Investment dealers etc.

Question 11

What does “ask price” mean?

Answer 11

Lowest price an investor is willing to sell for

Question 12

What does “bid price” mean?

Answer 12

Highest price an investor is willing to pay

Question 13

What is a blue chip stock?

Answer 13

A stock that is generally known for being good investments and worth your money because they are reliable, trustworthy, well known, stable etc.
- an example of this is APPLE, NIKE or TESLA

Question 14

What is a corporate bond?

Answer 14

A bond issued by a corporation in order to raise financing for a variety of reasons

Question 15

Advantages of investing in stocks?

Answer 15

• Smooth and Continuous Transactions
• Diversification
• Dividend Benefits
• Investment Gains etc

Question 16

What is a mutual fund?

Answer 16

A ‘pooled’ collection of assets that invests in stocks, bonds, and other securities.

Question 16

What is a mutual fund?

Answer 16

A ‘pooled’ collection of assets that invests in stocks, bonds, and other securities.

Question 17

Name 3 good things to know when investing:

Answer 17

1. Diversify - invest in a variety of stocks
2. Think logically when investing money (especially large amounts)
3. Understand the risks of investing

Question 18

Advantages of bonds?

Answer 18

• Predictable income stream
• High liquidity
• Legal protection

Question 19

Reasons why you should buy stocks: (3)

Answer 19

1. You can make money
2. Dividend income
3. Benefits of growth overtime