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The Third Quiz

Feb 23, 2016

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The Third Quiz . Review. What does “caveat emptor” mean? . What does “caveat emptor” mean? . Let the buyer beware – it means the burden of gaining or learning all the information about a stock falls on the person buying it. Bulls, bears, what does it mean? . Bulls, bears, what does it mean? . - PowerPoint PPT Presentation

The Third Quiz

The Third Quiz ReviewWhat does caveat emptor mean? What does caveat emptor mean? Let the buyer beware it means the burden of gaining or learning all the information about a stock falls on the person buying it.Bulls, bears, what does it mean? Bulls, bears, what does it mean? Bulls believe the stock market will go up, and buy long (keeping the stocks for a long time, so they will go up). Bears believe the opposite. Whats an investment bank? Whats an investment bank? This is an entity that buys an entire issue of some corporations stock and then sells that stock to the public. Whats an underwriter? Whats an underwriter? An entity that specializes in selling stocks or bonds to the public. What goes on an balance sheet? What goes on an balance sheet? Assets things a businesses owns of valueLiabilities debts a business owes to other people or businessesNet Worth the difference between assets and liabilities What is insider trading? What is insider trading? When someone buys or sells stock based on information that no one else has. Having the information isnt a crime, but acting on it is. This is what Martha Stewart went to jail for. Why do we have security markets? Why do we have security markets? They are a great place to buy or sell stocks, theyre also an important place to determine the price of stocks (using supply and demand, of course) What are dividends? What are dividends? When you own a share of a company, and you get a share of the profits, those are dividends. Why would you go to a brokerage firm when you could use a web site to buy stocks? Why would you go to a brokerage firm when you could use a web site to buy stocks? For expert advicebrokerage firms spend a lot of time and money researching stocks and bonds. What is capital growth (when were talking about stocks, that is)? What is capital growth (when were talking about stocks, that is)? If you buy stocks for 10 dollars a share and you sell it later for 15 dollars a share, then the 5 dollars a share you make on the investment, is called capital growth. The End