Basics
What is a stock?
A portion (share) of a publicly-traded company and its assets
Name the 3 types of stocks which we mentioned
Growth stocks, value stocks, income stocks
If a stock chart is green, what does this mean?
The company is doing well.
How old must you be to open an account (for trading)?
18, or must be signed up by a parent or guardian
What do growth stocks go towards?
All the profit is reinvested into the company to increase growth
True or false: Warren Buffet was not successful at first
True
What is an exchange?
An exchange offers specific stocks to be traded
What is a value stock?
A stock that investors believe is trading at a value less than it’s worth
Who is one of the world’s most successful investors?
Warren Buffet
What days and times is the Stock Market trading open?
Monday to Friday, 9:30 - 4:00
Is the risk of investing in value stocks higher or lower, and why?
Risk of investing is lower because value stocks are generally from larger, well-established companies
Name one of the stocks ranked as the best performing stocks in 2024.
Nvidia, Walmart, Amazon, Apple, AMEX, Palantir
One of purposes of stocks (which we mentioned)
Money, companies need money to operate. Capital, cash available for spending - machinery or factories
Why doesn’t a high dividend yield always mean a company is doing well?
Sometimes high dividend yields are given out to attract investors
An investment strategy based on a set of clearly defined fundamental criteria that seeks to identify companies with outstanding quality characteristics
What is a quality investment?