Investopedia
Microeconomics
Investing
Invest or Sell
Miscellaneous
100

How much money do you start out with in our game?

$250000

100

What is investing?

Investing is the act of putting your money into assets, such as stocks, bonds, or real estate, with the expectation that they will grow in value over time and generate returns

100

What is diversification?

This investment strategy involves spreading your money across different types of investments to reduce risk.

100

You bought 150 shares of Company A at $60 each. The stock price has been hovering around $60 for months with no clear upward movement. You hear rumors about a potential acquisition that could increase the stock's value. Should you invest more or sell?

Invest more. If the acquisition news could drive the price higher, it might be worth buying more shares before the announcement. But, make sure you are okay with the potential risk if the news doesn't materialize.

100

What is the retail price?

This is the price a customer pays for a product, not what it costs to make.

200

When does Investopedia simulator open?

9:30 am, and goes till 4:00pm

200

What is a stock?

A stock is a type of security that represents a share of ownership in a company

200

What is the stock market?

This financial market is where investors buy and sell shares of public companies.

200

You purchased 200 shares of Company Z for $40 each, and the price has recently dropped to $30. The company is facing a short-term issue but has strong long-term prospects. Should you invest more or sell?

Invest more. The drop in price could be a good opportunity to buy more shares at a discount, especially if you believe the company will recover over time.

200

What are assets?

This is the term for the total value of everything a person or company owns.

300

Give an example of a stock you can invest in on Investopedia

Any and All

300

What is supply?

How much suppliers are willing to sell at a certain price

300

What is a bond?

This type of investment is a loan to a company or government that pays you interest over time.

300

You invested $10,000 in a tech ETF that has gained 25% over the past year, bringing your portfolio to $12,500. You’re worried about an upcoming market downturn. Should you invest more or sell some of your holdings?

Sell some holdings. Taking profits and rebalancing your portfolio could reduce risk in case of a downturn. It’s always smart to lock in some gains when markets are volatile.

300

What are liabilities?

This is the term for what a company owes—like loans, bills, or other debts.

400

How does the stock buying work?

To buy a stock, someone has to be willing to sell

400

What is demand?

The quantity that is demanded by consumers

400

What is a dividend?

This term refers to the percentage of a company’s profits that are paid to shareholders, usually in cash.

400

You bought 50 shares of Company Y at $20 each. Over the past year, the share price has fallen to $12. Your research indicates the company is improving and the price could recover. Should you invest or sell?

If you believe in the company's recovery, this is a good opportunity to add more shares at a lower price, potentially benefiting from future gains when the price rises.

400

What is profit?

This is the official term for the money a business earns after subtracting expenses.

500

Whats the name of the simulation we are using to invest? (be specific)

Investopedia Simulator

500

What is elasticity?

The response of one variable to another, (price to quantity, or vice versa)
500

What is return on investment (ROI)?

This term describes the total return on an investment, including both capital gains and dividends, expressed as a percentage of the initial investment.

500

You purchased 100 shares of Company X for $50 each. Now, the share price has risen to $75. You need quick cash but you don’t think the price will go any higher. Should you invest or sell?

Sell. Since the price has risen and you need quick cash, selling would lock in the gains. Holding onto it when you don't expect further price increases could risk losing value.

500

What is an income statement?

This is the official term for the money a business earns after subtracting expenses.