In a few words, what do you think of the stock market?
Stock markets are a place where buyers and sellers can trade stocks. Stocks represent ownership in a company and the price of the stock depends on the demand of the company. You can invest in stocks by buying them through a brokerage account.
Investing in the Stock Market
Stock: A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. Stock Market: A public marketplace where investors can buy and sell securities, such as stocks and bonds. Brokerage Account: An account established with a broker or other financial institution that allows an investor to buy, sell, and hold investments.
The first stock market was established in Amsterdam in 1602. The oldest stock exchange still in operation is the London Stock Exchange, founded in 1773. The New York Stock Exchange (NYSE) is the largest stock exchange in the world with a market capitalization of more than $22.4 trillion.
Work together in pairs: What is the role of the Securities and Exchange Commission (SEC) in regulating the stock market?
Work together in pairs: What are the advantages and disadvantages of investing in the stock market?
Brain break: Create a drawing of a landscape that has an alien spaceship crash-landing in it. The crash must be portrayed realistically, with the alien spaceship in the foreground in the process of crashing and the landscape in the background. Make sure to include details like smoke, fire, and destruction.
What is the stock market?
- A place to buy and sell stocks
- A place to buy and sell goods
- A place to buy and sell bonds
- A place to buy and sell currencies
What are stocks?
- Shares of a company's ownership
- Units of currency
- Bonds issued by a company
- A type of commodity
What is a stock exchange?
- A marketplace for trading stocks
- A marketplace for trading bonds
- A marketplace for trading currencies
- A marketplace for trading commodities
What is the purpose of investing in the stock market?
- To make money
- To save money
- To gamble
- To buy goods
What is the most important factor when investing in the stock market?
- Doing your research
- Choosing a reputable broker
- Having a good luck charm
- Taking advice from friends