Blog #1

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. people buy and sell stock because they hope to accumulate a large amount of stock within a company so that they may wield some level of power within that company.

2. What is the difference between a public and a private company?
- 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?
- Dow Jones Industrial Average : index value=10012.2 point change=10.1 points percent change=0.10 percent

4. What is a blue chip stock?
- A blue chip stock is the stock of a well-run company, having high profit earnings and low yeild.

5. What is the New York Stock Exchange and the NASDAQ?
- The group, now known as Nasdaq-OMX, controls and operates the NASDAQ stock exchange in New York City. A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities.

6. What is a mutual fund and how do they operate, why can they be good?
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