1.What exactly is a stock and why do companies sell stock in the first place?
- A stock is a certificate that shows that you own a small fraction of a corporation. when you buy a stock, you are paying for a small percentage of the company. Companies sell stock in order to raise investment capital.

2.What is the difference between a public and a private company?
- The different between a public and a private company is that a public company is one whose stock is traded by the public, e.g., listed on an exchange such as the New York Stock Exchange or NASDAQ. A private company is one whose stock is generally held by one shareholder or a small group of shareholders.

3.What is the Dow Jones Industrial Average?
- The Dow Jones Industrial Average (DJIA) is an index of thirty, blue chip stocks that are traded in the United States. It is believed that by looking at the companies on the list, a person can get a general picture of how the market as a whole is performing. The Dow is perhaps the most quoted and followed index in the world, and dates back to May 26, 1896. It was then comprised of 12 stocks and opened at 40.94.

4.What is a blue chip stock?
- A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.

5.What is the New York Stock Exchange and the NASDAQ?
- The New York Stock Exchange is a stock exchange located in Lower Manhattan. It is the world's largest stock exchange by market capitalization of its listed companies at US$28.5 trillion as of May 2008. NASDAQ is National Association of Securities Dealers Automated Quotations. Their job is to keep computerized data system to provide brokers with price quotations for securities traded over the counter.

6.What is a mutual fund and how do they operate, why can they be good?
-A mutual fund pools money together from thousands of small investors and then its manager buys stocks, bonds or other securities with it. The mutual fund works by being managed by a professional investment manager who buys and sells securities for the most effective growth of the fund. As a mutual fund investor, you become a "shareholder" of the mutual fund company. When there are profits you will earn dividends. When there are losses, your shares will decrease in value.
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7.What are some of the biggest companies on the stock market (in total value of their stock?)
Berkshire Hathaway is well known for years now and has been a valuable stock in the market.

8.What is the PE ratio of a stock?
The PE ratio of a stock plays an important role because it looks at the relationship between the stock price and the company's earnings. It is the popular metric of stock analysis.

9.What is a stock dividend?
The stock dividend is a stock distribution declared by a corporation's board of directors paid to the current shareholder.

• What exactly is a stock and why do companies sell stock in the first place?A stock is simply a place of exchange to allow individual investors or shareholders of a company to come together to buy and sell stock. When you purchase or sell a share, this no longer has anything to do with the company that issued the share. As for the company is concerned, it is already a shared issued.
  
• What is the difference between a public and a private company?The company is one whose stock is traded by public, e.g.; listed on an exchange such as the new york stock exchange or NASDAQ. A private company is one whose stock is generally held by one shareholder or a small group of share holders.
  
• What is the Dow Jones Industrial Average? The average value of thirty large industrial stocks,
  
• What exactly is a stock and why do companies sell stock in the first place?
• What is the difference between a public and a private company?
• What is the Dow Jones Industrial Average?
• What is a blue chip stock?
• What is the New York Stock Exchange and the NASDAQ?
• What is a mutual fund and how do they operate, why can they be good?
• What are some of the biggest companies on the stock market (in total value of their stock?)
• What is the PE ratio of a stock?
• What is a stock dividend?