Global Markets & Capital Flows
Which country’s citizens invest the highest percentage of their wealth in stock markets?
the United States.
Over 50–60% of US households have stock exposure
What is stock and bond?
Stock = ownership; Bond = loan to a company/government.
What does P/E ratio compare?
Price per share to earnings per share.
What is FOMO? Give an example
Fear Of Missing Out.
Which company is led by Elon Musk and produces electric cars?
Tesla, Inc.
This country has high household savings, aging population, and one of the largest government bond markets in the world
Japan
What does IPO stand for?
Initial Public Offering.
High P/E may indicate what?
High growth expectations (or overvaluation).
What is overconfidence bias?
Believing you know more than you actually do.
Who is known as the “Oracle of Omaha”?
Warren Buffett
Which country has the second-largest stock market in the world?
China
What is market capitalization?
Total value of a company’s shares (price × number of shares).
What does ROE measure?
Return on Equity — profitability relative to shareholders’ equity.
What is herd behavior in investing?
Following the crowd instead of doing own analysis.
Which company became the first to reach $1 trillion market cap?
Apple Inc.
Which region is known for having the strongest technology sector dominance in public markets?
The United States (Silicon Valley effect, big tech giants)
Why are emerging markets considered riskier investments?
Political instability, currency risk, weaker institutions.
If debt-to-equity ratio is very high, what does it mean?
Company uses a lot of debt financing (higher financial risk).
What is confirmation bias?
Searching only for information that supports your existing belief.
Which investor built Berkshire Hathaway into a trillion-dollar conglomerate and is known for long-term value investing?
Warren Buffett
Which sector has historically delivered the highest long-term returns globally?
Technology (though with higher volatility)
When interest rates rise, what usually happens to stock markets?
They tend to fall (higher borrowing cost, lower valuations)
What does free cash flow indicate?
Cash available after operating expenses and capital expenditures.
What is loss aversion?
Bias that makes investors avoid selling losing stocks
Which investor popularized value investing and wrote "The Intelligent Investor"?
Benjamin Graham