Investment basics
What does ROI stand for?
Return on Investment
What is a term when stock market prices are rising
Bull market
What is the place where buyers and sellers meet to trade stocks?
Stock exchange
What is a cash reserve for unexpected expenses called?
Cash buffer
Who is a shareholder
The owner of the company
What is the term for a market in decline
Bear market
Who is a person that buys and sells financial assets for profit?
A trader
What term describes the balance between risks and benefits in decision -making
trade-off
What are bonds
Lending money to earn interest
What is a dividend?
Part of a company´s profit that is annually paid to shareholders if the owners decide to do so.
Define ForEx trade
Trading in value in one currency against the other.
Define `ballpark figure`
A number that is approximately correct
Define IPO
Initial public offering
What is a ´backer`in financial terms?
A person or organization that provides financial support
What is meant by liquidity?
The ease with which assets can be turned into cash.
Define the term trade-off.
The concept of giving up one thing in return for another.
What does ´yield`refer to in finance?
The income return on an investment, usually as a percentage.
Explain the term `market capitalization`?
Market c. is the total market value of a company´s outstanding shares ( stock price x number of shares)
What are commodities in trading?
Raw materials or primary agricultural products traded on markets
Define diversification`in investment strategy.
Diversification is investing in a variety of assets to reduce risk.