Investing
This strategy involves buying the entire market through ETFs and S&P
Passive Investing
What does “profit margin” mean
Net income divided by sales—shows how much profit a company makes.
This statement tells you how much a company owns v owes
What is the balance sheet
Does a higher standard deviation in a stock’s price means it is more stable
NO
This ratio is calculated by Price per share divided by Earnings per share
P/E
This term involves buying a hot stock based on headlines and commotion
Speculation or emotional investing
What is Return on Equity (ROE)
Net income divided by total equity—how well a company uses its money to make profit.
This number tells you how much cash the business generates after expenses and capex
Free Cash Flow
True or False: Net income and revenue are the same thing.
False
Who is the CEO of JP Morgan
Jamie Dimon
Name one of Benjamin Graham’s three principles of investing
Analyze a company, protect yourself from loss, aim for adequate (not extraordinary) returns.
What is the formula for Return on Assets (ROA)
Net income ÷ total assets
A company has a high P/E ratio. What are two possible reasons for that?
Investors expect future growth OR the stock is overvalued.
What "D" word, which literally means "money" in Spanish, has become a slang term for money in English?
Dinero
What is dollar-cost averaging
Investing the same amount regularly regardless of price; it helps avoid buying too high.
What’s the difference between a bull market and a bear market?
Bull = rising prices; Bear = falling prices
What is missing Assets = _______ + Shareholders Equity
Why might a company show positive net income but still be struggling financially?
It could have poor cash flow or high debt payments.
Which Minnesota-based S&P 500 company has the NYSE ticker symbol "MMM"
A company’s EPS is $5, and its stock price is $100. What is its P/E ratio
20
Name one other index or Mutual fund besides the S&P
Russel 100, Dow Jones, VIX, NASDAQ
What does a high debt-to-equity ratio mean
The company is using more borrowed money, which could be risky.
What’s the main purpose of a company’s balance sheet?
To show what a company owns (assets) and owes (liabilities), and its net worth (equity).
The most commonly known stock index in its country, the KOPSI is a stock index of the exchange in which Asian country?
South Korea
What company owns the ticker T
AT&T