The Stock Market Flashcards
1
Q
what is a stock?
A
a small share of ownership of a company
2
Q
what is the stock market?
A
place that employs stock brokers to assist investors in buying and selling shares
3
Q
capital gains is…
A
the stock price going up after buying something –> demand for shares goes up because investors believe the company is growing in value and are willing to pay more for shares of the company
4
Q
what are dividends?
A
companies paying out a portion of their profits as dividends to shareholders
5
Q
why were companies increasing sales and profits in the 20’s?
A
as the economy boomed, many companies were increasing prices –> demand for stock goes up = increasing stock prices
6
Q
what was the immediate cause of the depression?
A
people trying to get ‘rich quick’ by ‘playing’ the stock market
