Stock Market Basics
What does owning a share of stock represent?
Partial ownership of a company
What company uses the ticker AAPL?
Apple
What is a dividend?
A payment or distribution to shareholders
You buy a stock for $50 and sell it for $60. What is your profit per share?
$10
Which major index tracks approximately 500 leading U.S. companies?
S&P 500
What are the two main actions investors take when trading stocks?
Buying and selling
Which company owns Instagram and WhatsApp?
Meta
What does ETF stand for?
Exchange-Traded Fund
You own 10 shares worth $25 each. What is their total value?
$250
What is the central bank of the United States?
Federal Reserve / Fed
What is a market called when stock prices are generally rising?
Bull market
Which company is famous for its AI chips and graphics cards?
Nvidia
What is diversification?
Spreading money across different investments
A stock goes from $100 to $120. What is the percentage gain?
20%
What type of order buys or sells immediately at the best available price?
Market Order
What does IPO stand for?
Initial Public Offering
What company uses the ticker GOOGL?
What is a bear market?
A market that has fallen 20% or more from a recent high
A company has 1 million shares trading at $50. What is its market cap?
$50 million
What trading strategy attempts to profit when a stock falls?
Short selling
What is market capitalization?
Total value of a company's outstanding shares
What company is associated with Warren Buffett and owns GEICO?
Berkshire Hathaway
What does the P/E ratio compare?
Stock price to earnings per share
A stock falls 50%. What percentage gain is needed to recover?
100%
Name a financial statement reported in a company's quarterly earnings
Income/P&L statement, Balance sheet, Cashflow statement, or Statement of Shareholder's Equity