Stock Market Basics
This worksheet introduces grade 10 students to fundamental concepts of the stock market, including stocks, bonds, exchanges, and investment strategies.
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Stock Market Basics
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Read each question carefully and answer to the best of your ability. For multiple-choice questions, select the best option. For fill-in-the-blank and short-answer questions, write your responses in the space provided.
1. What does a 'stock' represent in the stock market?
A loan made to a company
A share of ownership in a company
A fixed interest payment
A government-issued security
2. Which of the following is NOT a major stock exchange?
New York Stock Exchange (NYSE)
NASDAQ
London Stock Exchange (LSE)
Federal Reserve Bank
3. A is a type of investment that represents a loan made by an investor to a borrower (typically corporate or governmental).
4. The concept of 'diversification' in investing means spreading your investments across various assets to reduce .
5. A 'bull market' is characterized by falling stock prices and investor pessimism.
True
False
6. Dividends are portions of a company's profits paid out to its shareholders.
True
False
7. Briefly explain the difference between a primary market and a secondary market in the context of stock trading.
8. What are two common reasons why individuals invest in the stock market?
Use the words below to complete the sentences.
9. A is a financial professional who executes buy and sell orders on behalf of clients.
10. The term refers to the degree of variation of a trading price series over time, often used as a measure of risk.