Stock Market
The 500 largest publicly traded companies in the US.
What does the S&P 500 track?
Measure of the total value of goods and services produced in a country over a time period.
What is GDP?
Spreading investments across different assets.
What is diversification?
___ investing is buying undervalued stocks with strong fundamentals and holding them for the long term.
What is value investing?
A portion of a company's earnings paid to shareholders.
What is a dividend?
Makes borrowing more expensive, slows down economy
What happens when the Fed raises rates?
A company's stock price relative to it's earnings.
What is the P/E ratio?
____ investing strategy focuses on buying stocks of companies with strong earnings growth potential, even if their current valuations are high.
What is growth investing?
Company increases it's number of shares, reducing the share price proportionally.
What does a stock "split" mean?
What is a market mover?
This risk is specific to a company or industry.
____ investing is when one invests in stocks that regularly distribute a portion of their earnings to shareholders.
What is dividend investing?
Subprime mortgage lending and risky financial derivatives.
What was a main cause of the 2008 financial crisis?
When a country's imports exceeds it's exports
What is a current account deficit?
Cryptocurrency (number 1 out of crypto, bonds and mutual funds )
Which type of investment has the highest risk?
Long-term investment strategy that focuses on buying and holding investments for a long time (ex: index funds).
What is passive investing?
Right to sell a security at a specified price up to the date of expiration.
What is a put option?
When the central bank purchases government bonds to add liquidity into the economy.
What is quantitative easing?
A technical analysis pattern, shaped like an "M," signals a potential reversal from an uptrend to a downtrend.
What is a double top?
Long-term strategy that involves consistently investing a fixed amount of money at regular intervals, regardless of market conditions.
What is dollar-cost averaging?