Three Statements & Valuation
THE accounting equation.
What is Assets = Liabilities + Equity?
This index tracks the 500 most valuable stocks in the U.S.
What is the S&P 500?
This is the FEDs target inflation rate.
What is 2%?
One of the hottest and most commonly misunderstood job in finance.
What is investment banking?
The name of the current Fed Chair and why Trump had beef with him.
What is Jerome Powell / Wouldn't lower rates?
This non-cash expense lowers your taxes but doesn't actually cost you cash in the current period.
What is Depreciation (or Amortization)?
Investors often refer to the "FAANG" stocks. The "A"s stand for Apple and Amazon. What does the "G" stand for?
What is Google (Alphabet)?
This generally happens to the price of existing bonds when the Federal Reserve raises interest rates.
What is "They go down"?
This is the generally advised framework for responding to a behavioral interview question (Acronym and terms).
What is STAR: Situation, Task, Action, Response)?
Finance and Investment Club's faculty advisor (Think Eastern Europe).
What is Andrey Ukhov?
If you could only choose one financial statement to evaluate a company's viability, you would choose this one. (According to most professionals)
What is the Cash Flow Statement?
This beverage company has the highest gains of any stock...of all time.
What is Monster Energy?
This happens to the money supply when the Federal Reserve buys bonds in the open market (Quantitative Easing).
What is "It increases"?
Passing the FINRA SIE exam allows you to pursue any one of these certifications.
What is Series 6, Series 7, Series 22, Series 57, Series 79, Series 82, Series 86/87, Series 99?
Last years 3 club leaders.
What is Georgii, Ethan, and Caroline?
In a Discounted Cash Flow (DCF), we project future cash flows and "discount" them back to the present using this rate.
What is WACC (Weighted Average Cost of Capital)?
Diversifying your portfolio eliminates/decreases this type of risk.
What is unsystematic or individual risk?
Economists argue that a tariff generates a deadweight loss that is paid by this group.
What is society?
This type of firm would participate in a LBO.
What is private equity?
In the movie The Big Short, Dr. Michael Burry (played by Christian Bale) bets against the housing market using this specific derivative instrument.
What are Credit Default Swaps (CDS)?
Companies with high growth potential but low current earnings (like tech startups) are usually valued using this multiple instead of P/E.
What is EV / Revenue (or Price / Sales)?
When you sell a put option with an exercise price of $38, a premium of $3, and the stock is priced at $40 at expiration; you make this much money off the contract.
What is $3/contract?
If a company has a Return on Assets (ROA) of 2.0, and revenue increases by $10 and inventory increases by $10, this will be the resulting impact on the ROA.
What is a decrease?
The main holdings a wealth manager would aim for in a portfolio built for a client near retirement.
What is majority fixed income?
The names of all 8 stocks in our club portfolio.
What is Cameco Corp, Quest Diagnostics, Newmont, Texas Instruments, Domino’s Pizza, Vertiv, Pfizer, JPMorgan Chase?