Task 3: Who am I if I own stocks?
Script
When a person buys stocks in a company, that person becomes a shareholder in that company. Stockholder is another name for shareholder. A shareholder can also be called an investor of the company. When that company makes money, which can also be called earned income or profit, the value of the company’s stock often increases. That’s because more people may become interested in investing in the company. Sometimes, shareholders receive a dividend, which is part of the company’s earned incomes, in the form of a cash payment.
Some people try to make money by buying and selling stocks. Stock prices can move up and down. Shareholders may make money or lose money by selling stocks that they own, depending on whether the price has gone up or down since they bought their shares. A company’s stock price may be affected by market or economic conditions. For example, let’s say that BCD Enterprises is a software company that has introduced a new video game into the market. If that game is a hit, sales of the video game could boost the company’s earnings. Because of the potential for BCD Enterprises to grow, its stock may be viewed as an attractive investment and its stock price may go up as more people buy its shares. On the other hand, let’s say the video game that BCD Enterprises introduced is a flop. Or, it could be a good time, but BCD introduced it at a time when people are spending less on leisure products, and hardly anyone is buying the game. So it’s reported that BCD is losing money because of this new product. Then the stock price for BCD Enterprises may go down if a number of shareholders decide to sell their shares.
1. What is the passage mainly concerned with?
C) The influence of shareholders’ buying and selling on a company.
2. Which of the following is NOT the same as a shareholder?
B) A person selling shares on behalf of others.
3. What may affect a company’s stock price?
D) All of the above.
4. According to the passage, which of the following is true if a company’s product is good?
A) The company’s stock price may go up.
5. Why does the speaker mention BCD Enterprises?
D) BCD is used as an example to illustrate the stock market principles |