Intro to Finance
Which are more volatile, small or large cap stocks? Explain why.
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What is the 52 week range?
Chart of a stock's prices over the past year
What is on the x and y axis of a stock chart?
Name three types of investment (not including stocks)
Real estate, crypto, collectors items, etc.
Explain foreign exchange rates
Rate at which you can swap dollars for foreign currency, and vice versa.
Name 3 of the eleven stock market sectors.
Communication services, consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology
What does the EPS (earnings per share) of a company represent, and how can it be found?
What is on the profile of a stock?
Information about the stock, its mission, its history, some big positions in the company
What is an ETF?
Collection of stocks traded as its own asset
What are futures?
A 'contract' to buy or sell a certain asset at a set price and date
What is a bull market?
When market is going up
Why is diversifying important, and what are some different ways you can diversity your portfolio?
Market cap diversification, sector diversification, portfolio diversification (investing in stocks, bonds, real estate, etc.)
What is the equation for the market cap of a stock?
Total shares * current share price
Name three foreign currencies.
Yen, Pounds, Euros, etc.
What is cryptocurrency? For a second bonus set of points, what is the type of technology that it uses to run?
.../Blockchain
NASDAQ, S&P, Dow Jones
Briefly define what a dividend is.
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How much are small, mid and large cap stocks worth?
Small: <2 billion
Mid: 2-10 billion
Large: >10 billion
What is the benefit of investing in foreign currency?
They can increase in value against the dollar
What are factors that affect real estate prices?
Location, economy health, interest rates, etc.
What does EBITDA stand for?
Earnings before interest, tax, depreciation, and amortization
What is the one percent rule?
1% of your capital is the maximum risk per trade
What does ROI stand for, and why is it important when investing (in anything)?
Return on investment
What is tax harvesting?
Taking losses to reduce taxable income
What is the shorting process?
Borrow stock, sell high, buy low, return borrowed stock and keep the change