Methods of Investing
On average how long do you hold investments for when you are investing?
3-5 years
How do you calculate Equity
Equity: total assets - total liabilities
What is the phrase for "A company’s total profit/number of shares"
Earnings Per Share
Define what buying and selling is.
Buy: To purchase a share in a publicly traded company
Sell: To sell a share in a publicly traded company
Who is our Vice President this year?
Justin Liu
On average how long are you holding investments for when you are trading?
Any short amount of time from 1 hour, to 1 day, to a week, to a month.
How do you calculate Revenue
sales price * number of units sold
What is a good way to measures a company’s performance over a year.
52 Week High/Low
What does it mean to Short-sell.
To bank a company’s stock going down and “short it” to capitalize on the loss.
Who was the Vice President last year?
Matt Shadid
As an investor would you be worried about losing money over the span of a day, week, or month?
No, you are only looking at the long-term performance of the stock.
How do you calculate Net Profit
Net Profit: revenue - all operating costs, interest, tax, and other expenses
What is the word for "An amount of money (per share) a company distributes to its shareholders, typically quarterly"
Dividend
What is the difference between a call option and a put option?
Call options: Allows the investor to buy the asset at a stated price within a specific timeframe.
Put options: Allows the investor to sell the asset at a stated price within a specific timeframe
What is the name of our club advisor?
Mrs.Fox!!!
As a trader would you be worried about losses in the span of a day, week, or month?
Yes, you are trying to make money quickly so you would be worried about losses in the short term.
How do you calculate Gross Profit and explain how it is different from Net Profit
Gross Profit: revenue - the cost of goods sold
What is the ratio that is the "Price per share / Earnings per share; measures how undervalued a company is (the lower the better)."
P/E Ratio
Give 5 examples or things you can invest in.
Real estate, Bonds, Mutual funds, Hedge funds, Gold, Oil, The stock market (stocks), Indexs
What are the names of the two investing competition that we run at Business Club?
Pick-A-Stock Competition & Marketwatch Competition
What is the difference between investing and trading? Which one is better? Give a reason why one is better with clear reasoning.
Investing is buying stocks for the long term and trading is buying stocks for the short term. Answers may vary.
Explain what Market Capital is and how to calculate it.
Market Capital: Used to gage how a company’s doing and how many people hold positions as it’s the number of shares all investors’ hold * share price
Define what a P/B ratio is. *This was not in the slideshow so double the points if you get it right*
Afinancial ratio used to compare a company's current market value to its book value (based on its assets)
What is the difference between a bull market and bear market?
“Bear” market: A bear market is the condition when securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment
“Bull” market: A bull market is the condition when prices are rising or are expected to rise. There is a positive investor sentiment that the market is doing well.
What was the name of our President last year?
Stephen Lin