Current Events
This major U.S. stock index recently hit record highs, driven mostly by tech companies.
What is the S&P 500?
A share of ownership in a company is called this.
What is a stock?
This is what you give up when you choose one option over another.
What is opportunity cost?
You lend your friend $20 and expect it back later,you’re basically doing this.
What is lending?
This is money borrowed that must be repaid.
What is debt?
If rising oil prices continue, the Federal Reserve might respond by doing this.
What is raising interest rates?
When a company shares profits with shareholders, it pays this.
What is a dividend?
This is the minimum return you expect before saying “yes” to an investment.
What is the required return?
You buy something hoping to sell it later for more, you’re doing this.
What is investing?
This is the cost of using borrowed money.
What is interest?
This global conflict is pushing oil prices higher and affecting the economy
What is the U.S.–Iran conflict?
A market driven by only a few big companies lacks this.
What is diversification?
This tells you how long it takes to get your money back.
What is the payback period?
You check your bank account before buying something instead of after, you are doing?
What is budgeting / being financially aware?
Too much debt increases the risk of this.
What is default (or bankruptcy)?
A long-term trade war between major economies can contribute to this global economic outcome that can affect stock markets
What is a slowdown / recession?
When stock prices rise very quickly due to excitement (like AI), but not necessarily fundamentals, experts worry about this.
What is a Bubble?
Picking a safe investment instead of a risky one because you don’t want to lose money shows this.
What is risk aversion?
You earn money without working extra hours,this is called this.
What is passive income?
Using borrowed money to increase potential returns is called this.
What is leverage?
Who is Tim Cook?
This hypothesis states that stock prices reflect all available information.
What is the efficient market hypothesis (EMH)?
You have two options, Stock A = 10% return, 5 S.D. and Stock B = 20% return, but 10% S.D. Which one do you choose?
Either is fine
You take a risk hoping for a bigger reward,that’s this trad
What is the risk-return tradeoff?
This measures a company’s ability to pay interest on its debt.
What is the interest coverage ratio?