Wealth Basics
What is the term for the total value of what someone owns minus what they owe?
Net Worth
What is a unit of ownership called?
Share
What is the amount of a product available for sale called?
Supply
What do we call a financial statement of expenses and income?
Budget
What is the act of buying and selling stocks called?
Trading
What are the items of value that a person owns, like property, cash, or investments?
Assets
What is the marketplace where stocks are bought and sold?
Stock Market
What is the desire of consumers to purchase a product at a given price called?
Demand
What is the difference between an asset's market value and what it cost called?
Equity
What is the difference between the stock's highest bid price and lowest asking price?
What are obligations or debts that a person owes, like loans or credit card balances?
Liabilities
What is the process of spreading investments to reduce risk called?
Diversification
What happens to stock prices when demand for stock increases?
They typically rise
What is the measure of an economy's productivity, often represented by GDP?
Economy
What is the primary reason stock prices change?
Changes in supply or demand
What do we call the money spent on goods, services, or bills?
Expense
What do we call the unique series of letters representing a stock?
Stock Symbol
What happens when supply exceeds demand?
Prices usually fall
What are stocks or other investments that may increase your wealth over time?
Growth Assets
What does it mean to own a diversified portfolio?
Owning a mix of different types of investments
Wealth passed from one generation to another
Generational Wealth
What are payments made to shareholders from a company's profits called?
Dividends
What term describes the overall relationship between supply, demand, and pricing in an economy?
Market Dynamics
What economic principle explains how price is determined by supply and demand?
Price Mechanism
What financial metric shows how profitable a company is compared to its expenses?
Profit Margin