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What Is a Stock

August 25, 2012. What Is a Stock?. 2. Income, Saving and Investing. Households earn income.Income is payments received by a household by selling or renting productive resources.Households usually spend some of their income and save some of it.Saving is income not spent on consumption or taxes.So

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What Is a Stock

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    1. What Is a Stock? Lesson 4

    2. August 26, 2012 What Is a Stock? 2 Income, Saving and Investing Households earn income. Income is payments received by a household by selling or renting productive resources. Households usually spend some of their income and save some of it. Saving is income not spent on consumption or taxes. Some households use their savings to purchase stocks.

    3. August 26, 2012 What Is a Stock? 3 Lesson 4 Visual 1 Mathematics and Economics Questions Question 1. Stocks represent ownership in a corporation.

    4. August 26, 2012 What Is a Stock? 4 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 1. True. Stocks are shares of ownership in a corporation.

    5. August 26, 2012 What Is a Stock? 5 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 2. 50% written as a decimal is 5/100.

    6. August 26, 2012 What Is a Stock? 6 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 2. False. 50% written as a decimal is .5.

    7. August 26, 2012 What Is a Stock? 7 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 3. Mark bought 100 shares of Nike stock, and each share sold for $35.50. If no fees were involved, Mark paid $3,550 for the shares.

    8. August 26, 2012 What Is a Stock? 8 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 3. True. 100 x $35.50 = $3,550.

    9. August 26, 2012 What Is a Stock? 9 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 4. If Jenny has $100 in a savings account and earns 2 percent interest this month, she has earned $20 in interest.

    10. August 26, 2012 What Is a Stock? 10 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 4. False. 2 percent of $100 = $2.00

    11. August 26, 2012 What Is a Stock? 11 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 5. The closing price for a share of Wal-Mart stock was 37.25. This means that the price of the share was $37 and one-quarter of a dollar. One-quarter of a dollar is .20.

    12. August 26, 2012 What Is a Stock? 12 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 5. False. The closing price for a share of Wal-Mart stock was $37 and one-quarter of a dollar. One-quarter of a dollar is .25, not .20.

    13. August 26, 2012 What Is a Stock? 13 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 6. People who own stocks are guaranteed a return on the money they have invested in stocks.

    14. August 26, 2012 What Is a Stock? 14 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 6. False. Investing is stocks involves risk. Less risky investments are savings accounts and government bonds.

    15. August 26, 2012 What Is a Stock? 15 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 7. The only way stockholders make money is through dividend payments while they own the stock.

    16. August 26, 2012 What Is a Stock? 16 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 7. False. Stockholders make money through dividend payments or by owning stocks that increase in value.

    17. August 26, 2012 What Is a Stock? 17 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 8. One way stockholders make money is to sell their stock for more than they paid for it.

    18. August 26, 2012 What Is a Stock? 18 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 8. True. A common way for stockholders to make money is to sell their stock for more than they paid for it.

    19. August 26, 2012 What Is a Stock? 19 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 9. Stockholders can reduce the risk on their stock investment by diversifying their portfolios.

    20. August 26, 2012 What Is a Stock? 20 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 9. True. A common way for stockholders to reduce risk is by owning stocks in a variety of corporations.

    21. August 26, 2012 What Is a Stock? 21 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Question 10. The New York Stock Exchange is the only place where people can buy and sell stocks.

    22. August 26, 2012 What Is a Stock? 22 Lesson 4 Visual 1 (Continued) Mathematics and Economics Questions Answer 10. False. In addition to the New York Stock Exchange, people may buy stocks on the American Stock Exchange and the NASDAQ.

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