What is it called when a company issues shares for the first time?

  • Primary share sale
    Some people might call it that, but there’s a better-known term.
  • Share buyback
    No, this is something else.
  • Initial Public Offering
    That’s right!
  • Merger
    No, this is something else.

Who benefits when a stock is bought and sold after the IPO?

  • The company
    No, they only benefit from the IPO or from new share issues.
  • The buyer or seller
    That’s right!
  • No one, the market balances out the winners and losers
    No, this is not true.
  • Warren Buffett
    No, though he’s benefited from a lot of stock sales to be sure.

Which of these is NOT a reason share prices rise or fall?

  • Share buybacks
    No, shares do move on this.
  • The company’s financial health
    No, shares do move on this.
  • Reddit
    No, shares do move on this.
  • All of those are reasons stocks move
    That’s right!

What are bulls and bears?

  • Bulls believe prices will rise, bears believe they’ll fall
    That’s right!
  • Bulls believe prices will fall, bears believe they’ll rise
    No, that’s not right.
  • Bulls don’t care about prices, bears only care about prices
    No, that’s not right.
  • Bulls want to make money, bears want to lose it
    No, that’s not right.

What will make you more money, stocks or bonds?

  • Stocks
    No, that’s not right.
  • Bonds
    No, that’s not right.
  • Both provide the exact same return
    No, that’s not right.
  • Returns can not be predicted like that
    That’s right!

4

of 5

🔥 Nice!

You are firmly on your feet and seem to be ready to enter the stock market, but you are still stumbling over some issues. Our course will help you walk lightly and confidently. But be prepared to act on your own in the future.
Lesson 5

ETFs: how to invest in hundreds of companies easily

Lesson 5

ETFs: how to invest in hundreds of companies easily

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Our lessons built to be finished in order. Every lesson requires some knowledge from a previous one. Please procede to the last lesson you’ve started.