Stock Market
The collection of markets and exchanges where buying and selling shares of companies take place
What is the Stock Market?
The process of selling a stock right before an anticipated dip in the price of the said stock
What is shorting a stock?
The value at the bottom of an income statement.
What is net income?
The section of a balance sheet in which a company’s debt is included in.
What are Liabilities?
The conflict between the calculated value of a company and the market's perceived value of the company
What is Book Value vs. Market Value?
A share of a company
What is a stock?
the famous investing saying about taking advantage of the market's volatility to exploit its downsides and upsides
(hint: it's what you're trying to accomplish when you short a stock)
The net earnings (profit) of a company that appears on an income statement
What is Net Income?
The section of a balance sheet that would differ between to companies with everything identical apart from capital structures.
What are liabilities?
The accounting technique used to lower the cost value of a finite life or intangible asset incrementally through scheduled charges to income.
What is Amortization?
The original home of the New York Stock Exchange
(hint, the Wolf of ____)
The person you borrow stock from during the process of shorting
What is a stock broker?
The amount of money that a company actually receives during a specific period
What is Revenue?
Assets - Liabilities = ______
What is Equity?
The ratio for valuing a company that measures its current share price relative to its per-share earnings
What is the Price to Earnings Ratio?
A type of mutual fund that tracks parts of the market index, e.g the S&P 500
What is an index fund?
T or F: It is riskier to short stock than to invest long-term.
What is True?
Revenue - Cost of Goods Sold = _____
What is Gross Profit
The part of the balance sheet that represents the stocks issued by the company that investors can own.
What is equity?
Net Income / Average Total Assets = ______
What is the Return on Assets or ROA?
Selling at low points and buying at high points ____ the volatility of a stock.
What is increases the volatility?
Investors shorting a stock _____ the volatility of that stock.
What is decreases?
What D&A stands for on an income statement.
What is depreciation and amortization?
A financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time.
What is a Balance Sheet?
The accounting method that calculates declines in the value of an asset over time
What is Depreciation?