121. Reading Skills Comprehension: Stock and Shares

By | July 11, 2019

This passage is a fine stock and shares definition which describes stocks and shares meaning with stocks and shares explained. Stocks and shares trading requires the knowledge of stock and shares difference with stocks and shares dividends. Find these stocks and shares tips Reading Skills get sharpened by unseen passage reading comprehension test. We provide reading comprehension exercises with answers. Go through reading comprehension passages with multiple choice questions will help you in reading comprehension questions. We provide simple comprehension passages with questions and answers which have value based questions. These unseen comprehension passages are really helpful to all. Go through this reading comprehension pdf and reading passage worksheets to learn English.

STOCK AND SHARES

Read the following passage and answer the following questions:-

We’ve heard about the stock market and the wild price swings taking place. Are stocks some form of gambling? It seems that way because of the large amounts of money that people make and lose when trading stocks. Stocks are actually parts of a company. If you own stock in Walt Disney Corporation, you are part owner of that company. You own part of Disney World!
Companies that are divided into shares that people can buy and sell are called corporations. These corporations use much of their profits to build the company. They spend it on research and development to bring out new products, building new factories and equipment and sometimes buying other companies. The profits that aren’t reinvested into company growth are paid out to the shareholders as dividends. The more shares of stock you own, the more dividends you get.

The stock market is made up of a number of exchanges where buyers offer to purchase shares of a company’s stock at a price they think is fair. Owners, who want to sell, offer to give up their stocks at a price they think is fair. When those two prices are the same, a sale is made. Millions of shares are traded every business day.
When things are looking better for a company, more people want to own its stock, so the price goes up. But sometimes, buyers aren’t willing to pay as much and those holding the stock are more willing to sell, even if it means taking less money than they paid for it. Then the price falls. Perhaps, someday you’ll want to start a business. If you don’t have enough money to start your company, you might issue and sell shares of stock. That means you’ll have to share ownership with others, but you can get the money you need to start up.                                                                                                                 

(a) What are stocks?
(b) What are companies that are divided into shares called?
(c) Trading means to
(d) When a company reinvests the money, it
(e) When a corporation is making a lot of money, it usually pays some of it to the stockholders. Those payments are called
(f) When do more people want to buy a company’s share?
(g) What can be done to arrange money if you do not have enough funds to start business?
(h) Find the word from the passage which means ‘investigate systematically’.

Ans : (a) Stocks are actually parts of a company which enable a common man to be a part owner of that company.

(b) These companies are called corporations.
(c) buy and sell stocks
(d) brings out new products, builds new factories and sometimes buys other companies
(e) dividends
(f) More people want to buy a company’s share when things are looking better and it is making the good profit.
(g) You might issue and sell shares of stock to get the money you need to start up.
(h) ‘Research and development.

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