Basic Investments
A share of ownership in a company
What is a stock?
Market condition where prices are rising
What is a bull market?
Fee charged for executing trades
What is commission?
Letters representing a company's stock
What is a ticker symbol?
Largest stock exchange in the world
What is the NYSE?
A loan to a company or government that pays interest
What is a bond?
Market condition where prices are falling
What is a bear market?
Collection of investments owned by an individual
What is a portfolio?
Number of shares traded in a period
What is volume?
Famous index tracking 500 large companies
What is the S&P 500?
A professionally managed fund pooling money from many investors
What is a mutual fund?
Order to buy/sell immediately at current price
What is a market order?
Spreading investments across different assets
What is diversification?
Price-to-earnings ratio
What is P/E ratio?
Who is nicknamed the "Oracle of Omaha" for being such a successful investor?
Who is Warren Buffett?
A fund that trades like a stock and tracks an index
What is an ETF?
Order to buy/sell only at a specific price
What is a limit order?
Total value of a company's shares
What is market cap?
How quickly a stock price changes
What is volatility?
Term for selling a stock you don't own... Borrowing shares to sell now and buying them back later, hoping the price goes down.
What is short selling?
A fund that mirrors a market index like the S&P 500
What is an index fund?
Order to sell when stock hits certain lower price
What is a stop loss?
Payment made by company to shareholders
hat is a dividend?
Professional who buys/sells stocks
What is a broker?
An agreement to buy or sell a stock/commodity at a specific price on a future date.
What is Futures trading?