Famous investors
Who was warren buffets mentor?
After all expenses, what is the money that a company keeps called?
Net earnings
What is EPS?
Net Earnings/Number of shares outstanding
What is fiscal policy?
The use of government revenue to influence the U.S economy
define assets and liabilities in simple terms.
Assets put money into your pocket, Liabilities take money from your pocket.
Who created the index fund?
John C. Bogle
State the accounting formula
A=L+E
What is the P/E ratio
Price/Earnings
What is macroeconomics?
The part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
The poor work for money, the middle class works for money, but the rich _______?
Have money work for them
Who was the manager of the fidelity magellan fund through the 1980’s?
Peter Lynch
Are taxes taken out before or after business expenses?
After
What is the difference between short term and long term debt?
Short term debt is due withing a year, long term debt is due anytime longer than a year
What is the corporate tax rate in the U.S?
21%
What are the 6 words to financial literacy?
“Live like no other so you can live like no other” Who is that quote from?
Dave Ramsey
How are the accounts of assets organized on a balance sheet?
from most liquid to least liquid
In simple terms, Define cash flow
How much cash goes in V.S how much cash goes out
When demand increases, what else tends to follow?
Prices
What is the number one expense for most poor people and how can you avoid it?
Taxes is the number one expense poor people have to pay. The main way to avoid taxes is the issuance of debt. Debt is tax free.
Name the two famous investors whom Warren buffet (for the most part) based his investment strategy off of?
Ben Graham and Phil Fisher
If a company choses one day to buy back their own shares with the intention to issue them out at a later date to boost earnings temporarily, what is that called?
Treasury shares
What is the return on asset ratio?
Net earnings/Total assets
What does the Fed do in order to reduce money supply?
Sell government bonds
Poor Dad encourages getting a job and working your way up the ladder, but what does Rich Dad encourage?
owning the ladder