Stock Indexes
What is a stock index
A collection(portfolio) of stocks used to keep track of the market in a larger sense
What is a stock?
A share in the company, a small piece of ownership.
What is a brokerage?
A firm that matches buyers and sellers for investments, and helps people manage investing.
Who you might sell a share of a stock to?
What is a portfolio?
A list of your investments
Does an index fund have more or less growth potential than a managed fund?
In general, it will have a much higher growth potential
What is a certificate of deposit?
A account in a bank where you deposit money, where it grows and accumulates small amounts of interest.
What stock was shorted by hedgefund investors in early 2021, just for people to buy it and extremely inflate the value.
Gamestop
Does an investment in bonds or stocks have more risk?
Stocks have a higher risk
What is liquidity?
The extent to which a security can be bought and sold; how accessible your money or assets are
How many stocks are in the NASDAQ?
What is a mutual fund?
A diversified portfolio of many different investments that is managed that many people buy shares of.
What happens if you want to withdraw money from a bond or certificate of deposit early, before the set timeframe?
There are extra fees because you are taking out money before an agreed upon time, which will diminish returns on the investment greatly.
Name the two ways you can profit from buying stocks.
Capital gains(selling at a higher price), and dividends
Which is more risky, stocks or a certificate of deposit?
What is the full name of the S&P 500
The Standard and Poor's 500
What is an index fund?
A diversified portfolio of stocks imitating an index such as the Dow Jones.
What is a dividend?
What does NYSE stand for
The New York Stock Exchange
What is one downside of a managed fund?
The fees will take away from overall profit
How many stocks are in the Dow Jones Industrial Average?
There are 30 stocks in the Dow Jones
What is a bond?
When you loan a company or the government your money in return for payback with interest.
You borrow a security from someone, proceed to sell it in the market, buy it back later, hopefully at a lower price, return the security, and take the difference.
Which company currently has the highest market cap?
Apple, followed by Microsoft, then Nvidia
True or False? Information, even if not true, can cause a stock's value to drop.
True