Investing Basics
This is the money a company makes after all costs have been paid.
Profit
If demand rises but supply stays the same, prices usually move in this direction.
Upwards
Investors often buy this precious metal during times of uncertainty.
Gold
What does CEO stand for?
Chief Executive Officer
When prices rise (and therefore money buys less), this is occurring).
Inflation
Shares (stocks)
A period of falling economic activity is called this.
Recession
If OPEC cuts oil production, the price of oil will most likely do this.
This trillion-dollar company is famous primarily for producing AI chips and graphics processors.
NVIDIA
This term describes the total value of goods and services produced in a country each year.
GDP (Gross Domestic Product)
This measures how much money an investment makes compared with how much was originally invested.
Return (rate of return/percentage return)
What is the current UK inflation rate? (+/- 0.3% variance allowed)
3%
If If a new technology dramatically cuts electricity costs, business may expect profits to do this.
Increase
This is the largest supermarket (by market cap) listed on the UK stock market
Tesco
This is the proportion of a country's workforce that is not currently employed.
Unemployment rate
Diversification
After the USA and China, what is the country with the highest GDP?
Germany
The opposite of a bull market is a ___ market
Bear
What are the main market indices of the UK stock market? (name 2)
FTSE 100, FTSE 250, FTSE 350, FTSE All-Share
The value of the next best option you give up when making a decision is called this.
Opportunity cost
This famous investor is known for running Berkshire Hathaway.
Warren Buffett
What was the name of the ship that blocked the Suez Canal in 2021?
Evergreen/Ever Given
Lower interest rates generally make borrowing more or less attractive?
More
When a company sells part ownership to investors, it issues these.
Shares
A situation where 1 person's gain is exactly offset by another's loss (i.e. no one can gain without someone else losing)
Constant-sum game (allow zero-sum game)