STOCK MARKET BASICS
This is a share of ownership in a company.
What is a stock?
A company shares great news about higher profits. Investors get excited, and this usually happens to the stock.
What is it goes up?
Buying low and selling high is the goal of this basic strategy.
What is making a profit?
Between a government bond and a start-up stock, this is the safer investment.
What is a government bond?
This type of analysis uses charts and trends to predict stock movement.
What is technical analysis?
This is when a company offers its stock to the public for the first time.
What is an IPO?
The CEO quits suddenly. Investors worry, and this often happens to the stock price.
What is it drops?
This is when you earn interest on both your money and the interest it has already earned.
What is compound interest?
This budgeting rule says to use 50% of your money for needs, 30% for wants, and 20% for savings/investing.
What is the 50/30/20 rule?
This ratio compares a company’s stock price to its earnings.
What is the P/E ratio?
Companies may pay this to shareholders as a portion of their profits.
What is a dividend?
The government raises interest rates. Borrowing money gets more expensive, and this can happen to the stock market.
What is it goes down?
Investors do this when they decide not to buy or sell a stock.
What is hold?
This digital asset is an example of a high-risk investment.
What is cryptocurrency?
This strategy involves selling a borrowed stock and buying it back later at a lower price.
What is short selling?
This investing practice spreads your money across different types of investments to reduce risk.
What is diversification?
Gas prices surge. These types of companies often make more money when that happens.
What are oil or energy companies?
Starting to invest young gives your money more time to do this.
What is grow (compound)?
This is the strategy of spreading your money across different investments.
What is diversification?
These are large, reliable companies with a history of stable performance.
What are blue-chip stocks?
Most tech companies are listed on this stock exchange.
What is the NASDAQ?
A global crisis causes people to cancel trips. These companies may see their stock prices fall.
What are airlines or travel companies?
This type of investment pools money from many people to buy a variety of stocks or bonds.
What is a mutual fund?
For long-term growth, many people invest more heavily in these.
What are stocks?
This investing style focuses on companies that care about sustainability, fairness, and good leadership.
What is ESG investing?
Environmental, Social, and Governance