Lesson 2: What is the Stock Market?

Businesses listing their entire company for sale

Businesses selling partial ownership of their companies to raise capital

Investors buying stock in hopes of being hired by companies

People making donations to companies that need funding

Investors are pessimistic about how the stock market will perform

The economy is not doing as well

More investors are buying stocks, which causes stock values to increase

The unemployment rate in the country increases

Experienced highs and lows but increased in overall value

Had slight ups and downs but stayed about the same in value

Rarely experienced changes and has maintained the exact same value

Gone through severe ups and downs with an overall decrease in value

A BULL market is when the stock market is rising and the economy is booming, while a BEAR market describes a declining market and a receding economy

A BULL market is when there is a decline in the stock market and the economy is receding, while a BEAR market describes a rising market and a booming economy.

Optimistic/Positive

Pessimistic/Negative

It is hard to predict trends, and trends can only be identified once they’ve already happened

The stock market is typically in a BEAR market for a specific period of time

You have to invest large amounts of money to have your decisions match the performance of the stock market

The stock market is typically in a BULL market for a specific period of time

Yes

No