slivers of companies that you can buy on the stock market
What is Stocks?
coupons you can use to buy/sell stock at a certain price. They are traditionally sold as a way to reserve the right to buy/sell 100 shares of a stock at a certain price.
What is Options?
something Venture Capital Funds and Wealth Managers do when they think a stock will go down.
Treasury Bonds
One standard U.S. equity options contract generally represents this many shares.
What is 100?
funds you can buy that represent multiple stocks. ___s fluctuate on the market day the same way a stock would (in real time).
What is ETFs
options you buy to SELL a stock at a certain price when you think it will go down.
What is Put Options?
short sellers make money when a stock's price does this.
What is decreases?
a bill someone may buy from the government or a company, which is a way of giving them a loan in exchange for more money from the company or government in the future
What is Bonds?
This is the price paid to purchase an options contract.
What is the premium?
funds you can buy that represent multiple stocks. However, these are priced at the beginning and end of each market day and do not fluctuate as much as ETFs do.
What is Index Funds?
You buy these when you think the stock is going to go up, so you can buy it at a low price and then sell for more.
What is Call Options?
This is the opposite of short selling, where investors buy shares hoping their value increases.
What is going long?
loans you can give to the government for more money in the future. They are more reliable but take longer, and what you make is less.
What is T-Bonds
An investor purchases a call option with a $50 strike price. The stock rises to $65. The option has this much intrinsic value per share.
What is $15?
When most stock prices are rising and the market is doing well, it is known by this animal name.
What is Bull Market?
This is the predetermined price at which an option holder can buy or sell a stock.
What is Strike Price?
This occurs when short sellers rush to buy back shares, potentially causing the stock price to rise rapidly.
What is a Short Squeeze?
loans you give to a company.
What is Corporate Bonds?
This term describes how quickly an option loses value as it approaches expiration, assuming other factors remain constant.
What is time decay?
This is a famous index of 500 large U.S. companies used to measure the overall health of the stock market.
What is S&P 500?
This is the date when an options contract expires and is no longer valid.
What is Expiration date?
Unlike traditional investing, short selling has theoretically unlimited losses because of this.
What is the unlimited potential for a stock's price to rise?
This occurs when a bond issuer fails to make required interest payments or repay the principal.
What is Default?
A stock has 20 million shares sold short out of 100 million available shares. This is its short interest percentage.
What is 20%?