Financial assets
Funds, Markets, Trading
Risk and Return
Risk Management
Investment Strategies
100
This type of stock pays regular dividends and has priority over common stockholders in case of liquidation
Preferred stock
100
The market provides financing to local and international traders who urgently need short-term funds, and loans.
Money markets
100
The largest stock exchange in the world by market capitalization.
the New York Stock Exchange (NYSE)
100
This term refers to spreading investments across different asset classes to reduce risk.
Diversification
100
Bid price is
The price at which buyers are willing to purchase an asset.
200
This index tracks the top 500 publicly traded companies in the U.S.
the S&P 500
200
This term describes a market in which stock prices are rising and investor confidence is high.
BULL Market 
200
The statistical measure of how much an investment's returns fluctuate over time.
Standard deviation
200
An investor builds a portfolio with five stocks from the same industry. They believe they are diversified because they hold multiple stocks. What key mistake are they making in terms of risk management?
They are not properly diversified because all stocks are in the same industry, meaning they are likely to move together and not reduce overall risk
200
Value investing
A type of investing that focuses on undervalued companies based on fundamentals
300
According to the Investment Company Act of 1940, how often must investment companies compute their NAVs?
Daily
300
How will you choose funds?
Past performance and fee structures
300
What is correlation ?
Relations of assets, how two assets move in relation to each other
300
NPV shows insight about ___
NPV is used to help determine how much an investment, project, or any series of cash flows is worth today.
300
Investors who believe prices will fall and try to profit by selling borrowed stocks engage in this practice.
short selling
400
A financial contract that derives its value from an underlying asset, like options or futures.
a derivative
400
The 2010 Flash Crash exposed vulnerabilities in market structure, particularly the role of these market participants, who provide liquidity but can also withdraw instantly.
high-frequency traders
400
This risk arises when an investor’s purchasing power declines due to rising prices over time.
inflation risk
400
Making investment decisions to replicate a benchmark or index
Passive investing
400
How can you minimise risk in your portfolio?
Insurance
Diversification
Hedging: Use options, futures
Stop-Loss Orders
500
a company's outstanding shares are
those that are held by its shareholders
500
decentralized exchanges, impersonal, constant, underlying formula and the composition of the liquidity pool dictate the price
You read about what?
AMMs
500
Bonus
500
500
Before Harry Markowitz's paper, what was a common investment wisdom?
Put all your eggs in one basket and watch it well
500
The two rules of investing according to Buffett: Rule #1: ____, Rule #2: ____.
‘Never lose money,’ ‘Never forget Rule #1’