Study Guide for the Stock Markets Test

Introduction to Investing and the Stock Markets

Study Guide for the Test on Stock Markets and Investing is below:

(I Will be adding items next week, too)
Anything in Blue was added recently

These items will help you prepare for the quiz:

• Uncle Mort’s Money article and questions we answered in class.
• Building a Fortune – Joe Becherer article
• Strategies for Stock Selection article (How to Pick a Stock)
• The World of Mutual Funds homework (and the reading)
• Compound Interest homework (Watching Your Money Grow)
• True and False Quiz Activity Q & A (remember the signs you held up?
• Practice Online Quizzes!
• Stock Market notes
• Supply and Demand notes 
• NOTES in your binder as well. We took more this way in this unit than Unit 1.

Major Stock Concepts to know and know well:

 What were all of the reasons we learned about why people invest - 3 big reasons - do you remember?

 Explain the magic of compounding...(How does it work?) How is it different from simple interest?

 What does it mean to own stock?

Be able to compare stocks to bonds - remember the chart we made in class? 

 How do you know what stock to pick? (what are the strategies of choosing a company to invest in? (we discussed 6 possible strategies)  Can you identify and explain all of them?

 How do you read a Stock Quote (what is "Last Price or Last Trade, Volume, DIV, Market Cap, PE, etc...?

 What does it mean to sell short? (How does it work?)

 What is a stock split?

 Why do corporations issue stock? (What are they using the money for? What are examples - there were 4 we learned?)

 Why don’t you keep your life savings in a mattress in your home? (2 reasons - what are they?)

 When is a good time to begin investing in yourself? (and why?)

 What are the three largest stock exchanges in the United States?

What are commodities? Be able to explain.......

What is the DOW? What is it's purpose? Who created it? When?

What are Mutual Funds? What are Index Funds? What are sector funds? Look at the homework on Mutual Funds - all of those questions are fair game... I know there are several questions here - be sure to explain what these are:  General Mutual Fund, Sector Mutual Fund, Index Mutual Fund

What does "market cap" mean on a stock quote/summary?

What are the definitions of supply and demand?

Explain the Laws of Supply and Demand - (these are different from the question above)

What factors can change the level of demand for a good or service? (we learned 4)

What are the factors which can change the level of supply for a good or service? (We will learn 3)

Knowing what you know now about supply and demand and using the experience from the Candy/Coke activity in our room - explain why stock prices can go up and down...


READ BELOW:

Make sure you can answer the questions above, thoroughly! If you can’t ask Mr. M!

STOCKS AND BONDS with TEXAS BILL