Stock Market Fundamentals
Represented by a ticker symbol, essentially one unit of ownership in a company. Like real estate or bonds, it's a type of equity. You can earn dividends with these as well.
Stocks/Shares
True/False?
Many top players in the competition invest in random, rather not so well known stocks than rather your typical Apple and Nvidia stocks
True!
Banks raise these, and stocks drop. What is it?
Interest rates
What does ETF stand for?
Exchange-Traded Fund
Who pays interest to bondholders?
The bond issuer
These are the main two ways you make money off of a stock. You can either ___ it or ___ it.
Buy, Short
Before buying any stock, what metaphysical thing do you need before you choose to make that investment?Mr. Kaminski's best advice this year!
Before buying a stock, have a REASON for buying it.
Countries impose this on other countries' AI companies, steel companies, and other industries
Tariffs
Why might investors choose a sector ETF instead of buying individual stocks?
Diversification within the sector and lower company-specific risk.
Which type of bond is issued by cities and states?
Municipal bonds
Anything of value, has an intangible form too which includes patents. We see two of these things in the stock market, bonds and equities.
Assets!
To short a stock, what is the minimum price it has to be in order to do so?
A. 15-20
B. 30-40
C. 5-10
D. 67-100
A.
You can't short stocks below 15 dollars, if you short stuff frequently then you are familiar with this error message.
Which U.S. institution is mainly responsible for setting interest rates?
The Federal Reserve
What is the primary difference between a market-cap-weighted ETF and an equal-weight ETF?
Market-cap-weighted ETFs give larger companies more influence, while equal-weight ETFs give all companies similar weighting.
What is a mutual fund?
A pool of money from many investors used to buy investments.
Value of all company's shares (Price)(Total shares issued)
Market Cap (Capitalization)
Everyone has their own "reaction" to changes in a stock. Your personal reaction may cause you to change the way you invest in that stock. An important competition strategy being that you have to consider another party's reaction more than you own. Who/what is this other party?
Investors/The Public
Why can expectations about future Fed policy move markets even before rates actually change?
Markets are forward-looking and price in expected future conditions.
What famous ETF ticker tracks the Nasdaq-100 and includes many tech companies?
QQQ
True or False: Mutual funds can hold many different stocks or bonds.
True
This common financial metric is calculated by dividing a company's current share price by its earnings per share. Investors use this ratio to determine whether a stock is undervalued or overvalued.
P/E (Price to Earnings) Ratio
Not putting all your eggs in one basket; useful for the competition although it can't fully protect you from losses
Diversification
Why might shipping companies and ports be heavily impacted during trade disputes?
Global trade volumes may decline.
Which ETF tracks the S&P 500: SPY, QQQ, or DOGE?
SPY
What does the Federal Reserve often do to fight inflation that can negatively impact bond prices?
Raise interest rates