The Stock Market When a new company is organized and shares are sold, it is not hard to determine the value of each share: all the shares together represent the total value of the company. Ⅰ. The best way to explain how the stock market works. To imagine you form a company to produce a soda with 4 friends: 1) putting in $600 together for the expenses involved in the (1) of (1) ______ the company; 2) stating every (2) represents $10 of the present value of the company; (2) ______ 3) owning a share signifies--a part owner of the company. Ⅱ. Stock price increases when (3) is good and the value of the company (3) ______ jumps. 1) the (4) $600 invested→$1,800 in value at present (4) ______ 2) $10 per share originally → (5) each currently (5) ______ Ⅲ. Stock price falls when business is worse and the value of the company drops. 1) (6) of $1,800 → a low point of $300 (6) ______ 2) $30 per share $5 → per share Ⅳ. How to buy stocks 1) to find a (7) buying and selling stock for other people; (7) ______ 2) the stockbroker’s entering a stock market; 3) the stockbroker’s inquirement of other brokers about your buying; 4) the stockbroker’s (8) of the stock purchase; (8) ______ 5) to pay the bill the amount of purchase & the stockbroker’s (9) (9) ______ You have to pay the broker whenever he buys and sells for you, (10) (10) ______ each time you sell stock and sometimes when you buy. You may also pay a small fee to the owners of the place where the stock is bought or sold.