Stockmarket Crashes
Which event is often cited as the culmination of the subprime mortgage crisis?
The collapse of Lehman Brothers
Which of the following is a potential pitfall of using AI tools for research?
Detection of AI-generated text
What is a key advantage of investing in stocks compared to real estate?
Stocks are liquid assets
What is one reason investors might choose to diversify their portfolio?
To lower potential losses and to diversify risk.
In which year was the ASX founded?
1987
What is a subprime mortgage?
A home loan for borrowers with lower credit scores
What is crucial to include when using AI tools for research?
References and bibliography
What is a potential income source from investing in shares?
Dividends
What does a longer investment horizon typically allow for?
The ability to ride market fluctuations and maximise share price growth.
What is the main function of the ASX?
What was the most significant financial crisis since the Great Depression?
The 2007-2008 financial crisis
What should students assess regarding the sources provided by AI tools?
The credibility of the sources
What happens to shareholders if a company goes bankrupt?
They may lose their entire investment
What type of companies can you invest in on the ASX?
Publicly listed companies
Which index tracks the performance of the 200 largest companies on the ASX?
S&P/ASX 200
What was a contributing factor to the 1987 stock market crash?
Overvalued market
What should you not do when using AI for researching?
Copying and pasting content
What is the role of dividends in stock investments?
They may be distributed based on annual income to the shareholders twice a year.
Product Diversification and Invest for the long-term.
What is a requirement for a company to be listed on the ASX?
A track record of profitability or a strong management team
Which president is mentioned as a key event affecting the New York Stock Exchange?
Donald Trump
What is the main advantage of using AI over conducting a Google Search?
Efficient data analysis and summarised weblinks.
What is the main reason and benefit of investing in shares?
Potential capital gains
Which sectors often do well in a period of recession?
Healthcare, Large Banks, Energy and Consumer Staples.
Which sector includes companies that provide essential services like water and electricity?
Utilities