Trading & Markets
What is a “bid price”?
The highest price a buyer is willing to pay.
What are the three main things banks do?
Store money, lend money, and earn profits from interest/fees.
What is the “front end” of an app?
What the user sees and interacts with.
What does it mean to “own equity” in a company?
You own a share of the company.
What is financial risk?
The chance of losing money.
What is an “ask price”?
The lowest price a seller will accept.
What is a credit score used for?
Measuring how risky it is to lend you money.
What is the “back end”?
The logic, servers, and database that power the app.
What is a dividend?
A portion of the company's profit is paid to shareholders.
Why are safer investments usually lower-return?
Because low risk usually comes with low reward.
What is a “market order”?
An order to buy or sell immediately at the best available price.
What does a “debit card” pull money from?
Your bank account balance.
What is the cloud, in simple terms?
Someone else’s computer that stores or runs your app online.
What is diversification?
Spreading money across different assets to reduce risk.
What is a stop-loss order?
An automatic sell order set to limit losses.
What does “market volatility” mean?
How much prices move up and down.
What does an API do for digital payments?
It allows apps (like Cash App) to communicate with banks.
What is an example of a front-end language?
HTML, CSS, JavaScript, React, Swift, or Kotlin (any one acceptable).
What is the main difference between stocks and bonds?
Stocks = ownership; Bonds = lending.
What is the purpose of asset allocation?
Balancing investments between riskier and safer assets.
What is T+2 in stock trading?
Settlement occurs 2 business days after a trade.
What is “clearing and settlement” in payments?
The process is where money officially moves, and ownership is updated behind the scenes.
What role do APIs play in FinTech apps?
They act as bridges that allow apps to connect to banks, exchanges, or other services.
What is an ETF?
A fund that holds many assets and trades like a stock.
What is liquidity risk?
The risk that you can’t sell an investment quickly without losing value.