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 the (1)______
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
jumps. (3)______
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.