Investment
Basics
Basics
This stands for "Return on Investment" and measures profitability.
What is ROI?
What is the NYSE?
A billionaire investor known as the "Oracle of Omaha."
Who is Warren Buffett?
A strategy of buying undervalued stocks for long-term growth.
What is value investing?
The risk that an asset cannot be quickly sold without losing value.
What is liquidity risk?
A type of security that represents ownership in a company.
What is a stock?
A well-established company with a history of stable earnings.
What is a blue-chip stock?
An individual investor who buys and sells securities for personal gain.
What is a retail investor?
The practice of investing a fixed amount regularly, regardless of price.
What is dollar-cost averaging?
A fixed-income investment that represents a loan to a government or company.
What is a bond?
The potential of losing money in an investment.
What is the primary risk of investing?
A prolonged period when stock prices decline.
What is a bear market?
What is a hedge fund?
An investment fund that uses pooled money to make aggressive trades.
A fund that tracks an index and trades like a stock.
What is an ETF?
The risk that rising prices will erode the purchasing power of money.
What is inflation risk?
Spreading out investments to reduce risk.
What is diversification?
Selling borrowed stocks in hopes of buying them back at a lower price.
What is short selling?
Investors who provide funding to startups in exchange for equity.
What are venture capitalists?
A method of analyzing a company's financial health to determine its stock value.
What is fundamental analysis?
The principle that higher returns come with higher risks.
What is the risk-return tradeoff?
A collection of stocks used to measure market performance.
What is a market index?
The process of a company going public by offering shares for the first time.
What is an IPO?
A professional responsible for making investment decisions for a fund or client.
What is a portfolio manager?
A strategy of profiting from price differences in different markets.
What is arbitrage
What is a credit default swap?
A financial derivative that transfers credit risk from one party to another.