Intro. to the Stock Market

• What exactly is a stock and why do companies sell stock in the first place?
• - Stock represents the company's asserts and ownerships. Companies sell stocks in order to capitals.
• What is the difference between a public and a private company?
• - The difference between a public and a private company is that private company is owned privately and in the other hand, the public companies are shared by the public which means that the stocks are shared and the shareholders have rights for portion of company's profit.
• What is the Dow Jones Industrial Average?
• - The Dow Jones Industrial Average tracks variety of stocks to assists investors.
• What is a blue chip stock?
• - A blue chip stock is a stock that is known as safe and excellent in financial shape.
• What is the New York Stock Exchange and the NASDAQ?
• - The New York Stock Exchange is one of the biggest stock exchange in U.S. It is responsible for setting policies, supervising member activities, listing securities, overseeing the transfer of member seats, and evaluating applicants. The NASDAQ stands for National Association of Securities Dealers Automated Quotation. It is the largest electronic screen-based equity securities trading market in United States.
• What is a mutual fund and how do they operate, why can they be good?
• - Mutual fund is a tool that pools funds from the investors and invests it in stocks, bonds, and other securities. The mutual fund is operated by investment companies by selling shares to the public which is used to purchase any type of securities (stocks, bonds, money markets). They can be good because mutual fund is easy to manage them since it's monitored by professionals and it brings many benefits such as diversification in portfolio, liquidity, and more.
• What are some of the biggest companies on the stock market (in total value of stock) ?
• - Some of the biggest companies on the stock market are Hasen Natural, Apple, Comtech Telecommunication, McDonald's, ExxonMobile, and more.
• What is the PE ratio of a stock?
• - The PE ratio of a stock is the measure of price paid for a share annual net income or profit earned by the firm per share.
• What is a stock dividend?
• - Stock dividend represents the share's portion of company's profit yearly.