Basic Stock Info
At its root, what's a stock?
An investment into a company hoping to increase your initial investment over time
Chipotle Mexican Grill or YUMC - (Burger King, Pizza Hut, and Taco Bell)
YUMC is approximately $50.32 and Chipotle is approximately $39.40 per share
Option 1 - This stock just reached double its all-time high in just 24 hours and now has thousands of transactions per second.
Option 2 - This stock has consistently grown at an average of 12% per year over the last ten years and shows no sign of slowing down.
While Option 1 seems more lucrative, Option 2 is far safer and offers a strong return on investment.
You invested $100 monthly for ten years at an interest rate of ten percent per year (Simple interest)
$13,200 is the exact number
What is a 401k?
benefit that helps workers invest for retirement
Businesses use proceeds from stock sales to expand and improve their operations.
NVIDIA or Apple?
NVIDIA is roughly $191 per share and Apple is roughly $259 per share
Option 1 - This company is doing fantastically and decides to do a stock split
Option 2 - This company has been performing well, but now faces controversy, and the CEO has been fired
Option 1 is the better option, as a stock split can often help the stock, indicating the company is doing well enough that more shares make sense.
Option 2 is risky, as with a change in leadership, the company changes, and could provide poor results
How much more does money in an investment account grow on average than a savings account? Be within 10% of the true value
100 times more
Open an IRA which stands for Indiviual Retirement Account that one can save for years until retirement.
What are "concentration risks" in stocks?
Concentrating your investment can be very risky as if your one stock fails due to management or the economy, it's very hard to recover and thus causes large amounts of lost money.
Tesla or Microsoft?
Tesla has an average share cost of roughly $426, and Microsoft has an average share cost of roughly $413
Option 2 - The management of this company are horrible yet yield a slightly higher return on investment on average but you dislike them and feel poorly about investing in them
Option 1 as even though the other one has a higher return if you like a company and want to be part of their success than join them as your more likely to make a higher return due to the fact you are staying with them and trust them.
How much money would one have if they invested early from the age of 25 for fourty years until they retire at age 65 if they put their money in a stock with an annual interest rate of 8% putting in $325 a month.Hint its a lot of money used to be the standard for retiring...
One million dollars!!
What percent of your income is typically recomended to be invested into a 401k?
10%