Wall Street & The Markets
Named after a large mammal, this type of market is characterized by rising prices and optimistic investors
What is a bull market?
This financial statement displays a company's total assets, liabilities, and shareholders' equity at a specific point in time.
What is a balance sheet?
Launched in 2009 by the pseudonymous Satoshi Nakamoto, this was the world's first decentralized cryptocurrency.
Who is Bitcoin?
This is the type of tax you pay on the profits made from selling an asset like a stock or real estate that you held for more than a year.
What is long-term capital gains?
Financial planners typically suggest keeping 3 to 6 months of living expenses in this.
What is an emergency fund?
This 3-letter acronym represents the first time a private company sell shares to the public.
What is an IPO?
This term describes a portion of a company's earnings distributed directly to its shareholders.
What is a dividend?
This financial instrument is a contract that gives the buyer the right, but not the obligation, to buy or sell a stock at a set price.
What is an option?
This type of tax deduction reduces your taxable income by a fixed amount set by law, regardless of your actual expenses.
What is the standard deduction?
This 3-digit score measures a consumer's creditworthiness
What is a credit score?
This is the largest stock exchange in the world by market capitalization.
What is the New York Stock Exchange?
This is the financial metric calculated by subtracting a company's total liabilities from its total assets.
What is net worth?
This trading strategy involves borrowing shares of a stock you don't own, selling them, and hoping the price falls so you can buy them back cheaper.
What is short selling?
This financial strategy involves selling losing investments to offset capital gains and lower your tax bill.
What is tax-loss harvesting?
This legal document specifies how an individual's personal assets and guardianship choices should be handled after death.
What is a will?
What is the regulatory body created by Congress in 1934 to protect investors and maintain fair, orderly, and efficient markets.
What is the SEC? (Securities and Exchange Commission)
This standard financial metric calculates a company’s current stock price divided by its earnings per share.
What is the P/E ratio?
Bonus: This ratio improves the P/E ratio by factoring in how fast a company's profits are expected to grow? What is a PEG ratio?
This digital public ledger securely records cryptocurrency transactions across a network of computers.
What is a blockchain?
The U.S. uses this type of progressive tax system, meaning your tax rate increases as your income moves up into higher thresholds.
What is a marginal tax bracket system?
Bonus 1: How many federal income tax brackets are there? Seven
Bonus 2: Name the tax rate for each bracket? 10%, 12%, 22%, 24%, 32%, 35%, 37%
This is the term for a financial strategy where an individual establishes a separate legal entity to hold and protect their assets for heirs.
What is a trust?
This index measures the implied volatility of the S&P 500 options and is widely referred to as Wall Street's "Fear Gauge."
What is the VIX (Volatility Index)?
Bonus #1: What is the historical range in value? 9.14 (11/2017) & 82.69 (3/2020)
Bonus #2: What is the typical range? 11-26
This corporate action divides existing shares into multiple new shares to lower the price per share without changing total market value.
What is a stock split?
These private investment partnerships use advanced risk-management and speculative techniques to chase high returns for wealthy clients.
What is a hedge fund?
This parallel tax calculation system ensures high earners cannot use loopholes to escape paying a baseline tax.
What is the AMT (Alternative Minimum Tax)?
In the popular 50/30/20 budgeting framework, the "20" represents the percentage of income dedicated to this category.
What is savings?
Others are Needs and Wants