Stocks 101
A share of ownership in a company.
What is a stock?
A debt security where the issuer pays interest to bondholders.
What is a bond?
This metric is price divided by earnings per share.
What is the P/E ratio?
This "Oracle of Omaha" is known for value investing.
Who is Warren Buffett?
In this year, Gamestop stock surged over 1,600% after a Reddit-driven trading frenzy led by dumb money
What is 2021?
The price at which a stock is bought or sold on the open market.
What is the market price?
The date on which a bond's principal is repaid to investors.
What is the maturity date?
A measure of return on investment, expressed in percentage.
What is ROI?
This investors inverse etf has outperformed the market for the past 2 year
Who is Jim Cramer?
This is when in 2010 the market collapsed with the market wiping out a $1 trillion in under 30 minutes
What is Flash Crash?
This type of stock typically pays regular dividends and has priority over common stock.
What is preferred stock?
The face value of a bond, typically $1,000.
What is the par value?
The measure of a stock's volatility in relation to the overall market.
What is beta?
This "father of value investing" wrote "The Intelligent Investor".
Who is Benjamin Graham?
The 1987 stock market crash is commonly known as this.
What is Black Monday?
This is the term for dividing a company's existing shares into multiple new shares.
What is a stock split?
The yield on a bond minus inflation is known as this.
What is the real yield?
A metric that compares a company's market value to its book value.
What is the price-to-book ratio?
The Wolf of Wall Street
Who is Jordan Belfort?
This early 2000s bubble burst after excessive speculation in internet companies.
What is the dot-com bubble?
The opposite of a stock split, merging shares into fewer shares.
What is a reverse split?
Bonds rated below BBB or Baa are known as these high-risk, high-yield securities.
What are junk bonds?
This metric measures the profitability of a company relative to total equity.
What is ROE?
This hedge fund manager gained fame for predicting the 2008 housing crisis.
Who is Michael Burry?
The global financial crisis of 2007-2008 is often linked to this type of mortgage.
What is the subprime mortgage crisis?