Name: Grade: Date:
Story 01:
"What is the Stock Market? An
Introduction to Buying and Selling
Stocks"
The stock market is a place where shares of
companies are bought and sold. A share
represents a small ownership in a company.
People who buy shares are called investors. The
stock market allows companies to raise money to
grow their business, and it gives investors the
chance to earn profits if the company does well.
Stock prices change based on supply and demand.
When many people want to buy a stock, its price
goes up. When fewer people are interested, the
price goes down. Major stock markets include the
New York Stock Exchange (NYSE) and NASDAQ.
Investors can buy and sell stocks through brokers
or online platforms. They can hold onto their
stocks in hopes that prices rise or sell them if they
expect prices to fall. However, investing in stocks
is risky, as prices can be unpredictable. Some
people make a lot of money from the stock
market, while others may lose money.
Overall, the stock market plays a crucial role in
the economy by helping businesses grow and
giving people a chance to invest in them.
Name: Grade: Date:
Story 01: Comprehension Questions:
1. What is a share?
2. Why do companies sell shares?
What happens to the price of a stock when many
3.
people want to buy it?
4. How can investors buy and sell stocks?
5. Why is investing in the stock market risky?
Name: Grade: Date:
Story 01: Multiple Choice Questions:
1. What is the stock market?
a) A place where groceries are bought
b) A place where companies sell shares
c) A store for buying and selling products
d) A place where only investors can visit
2. What is a share?
a) A piece of a company's profits
b) A loan given to a company
c) A small ownership in a company
d) A type of bank account
3. What happens when demand for a stock is low?
a) The price goes up
b) The price stays the same
c) The price goes down
d) The stock is removed from the market
4. Which of the following is a major stock exchange?
a) eBay
b) Amazon
c) NYSE
d) Google
5. Who are the people that buy shares called?
a) Consumers
b) Brokers
c) Investors
d) Shareholders
Name: Grade: Date:
Story 01:
FILL IN THE BLANKS:
1. A share represents a small
___________ in a company.
2. People who buy shares are
called ___________.
3. The New York Stock Exchange is
an example of a ___________.
4. Stock prices rise when there is
high ___________.
5. Investors buy and sell stocks
through ___________ or online
platforms.
Name: Grade: Date:
Story 01: TRUE / FALSE :
True/False
N Statment
Answers
A share is a small ownership in a
1 company.
Companies sell shares to make more
2 profit.
Stock prices remain constant over time.
3
The stock market is risky because stock
4 prices can be unpredictable.
Investors can only buy stocks through
5 banks.
Name: Grade: Date:
Story 02:
"How Stock Prices are Determined:
Supply, Demand, and Market Factors"
Stock prices are influenced by a variety of factors,
with supply and demand playing a key role. Supply
refers to the number of shares available for
purchase, while demand represents how many
investors want to buy those shares. When demand
for a stock is high and more people want to buy it
than sell it, the price of the stock increases.
Conversely, when there is low demand, or more
people want to sell than buy, the price decreases.
Other factors that affect stock prices include
company performance, economic conditions, and
market trends. For example, if a company
announces higher profits, its stock price might rise
as more investors see it as a good investment. On
the other hand, if the economy is struggling, stock
prices can fall because people may be less confident
in investing.
Stock prices can also be influenced by news and
events. Major news stories, such as a new product
launch or changes in leadership, can cause prices to
rise or fall rapidly.
Overall, stock prices are determined by a mix of
supply, demand, and market conditions, making
them highly unpredictable.
Name: Grade: Date:
Story 02: Comprehension Questions:
What is supply in the stock market?
What happens to stock prices when demand is
high?
How does company performance affect stock
prices?
What role do economic conditions play in stock prices?
Can news events affect stock prices? How?
Name: Grade: Date:
Story 02: Multiple Choice Questions:
1. What happens when demand for a stock is high?
a) The stock price stays the same
b) The stock price decreases
c) The stock price increases
d) The stock becomes unavailable
2. Which of the following is an example of a factor that
affects stock prices?
a) Number of employees in a company
b) Economic conditions
c) Company uniforms
d) Office location
3. What is one reason stock prices might fall?
a) The company reports a loss
b) The company hires more employees
c) The weather is bad
d) A holiday is coming up
4. If more people want to sell a stock than buy it, the price
usually:
a) Increases
b) Decreases
c) Stays the same
d) Doubles
5. What is one way news can affect stock prices?
a) News has no effect on stock prices
b) News increases the number of stocks available
c) Positive news can make stock prices rise
d) Negative news can make more people buy stocks
Name: Grade: Date:
Story 02:
FILL IN THE BLANKS:
1. Stock prices rise when ___________
is higher than supply.
2. ___________ and ___________ are key
factors that affect stock prices.
3. Good company performance can
cause stock prices to ___________.
4. Economic struggles can lead to
___________ stock prices.
5. News and ___________ can quickly
impact stock prices.
Name: Grade: Date:
Story 02:
TRUE / FALSE :
True/False
N Statment
Answers
Stock prices are mainly determined by
1 supply and demand.
Stock prices never change when there is
2 news about a company.
If a company performs well, its stock
3 price may increase.
When supply is low and demand is high,
4 stock prices tend to fall.
Economic conditions can have a big
5 impact on stock prices.
