Investing Essentials
This represents ownership in a company.
What is a share?
A place where stocks are bought and sold.
What is a stock market?
This company started as an online bookstore and is now a global giant.
What is Amazon?
This is the first and most well-known cryptocurreny.
What is Bitcoin?
This means putting all your money into one investment and incurring a lot of risk.
What is lack of diversification?
This ratio compares a company's stock price to its earnings and is often used to determine if a stock is overvalued.
What is the P/E ratio (price-to-earnings ratio)?
This index tracks hundreds of the largest publicly traded companies in the U.S.
What is the S&P 500?
This is money you earn from an investment.
What is a return?
When stock prices are rising over time, it's called this type of market.
What is a bull market?
This car company is named after one of the most prominent electrical scientists.
What is Tesla?
Crypto is not controlled by the government, meaning it is this.
What is unregulated?
This term refers to buying something just because everyone else is.
What is herd mentality?
This investment strategy involves borrowing money to increase potential returns (and risk).
What is margin trading?
This famous investor said, "Be fearful when others are greedy and greedy when others are fearful."
Who is Warren Buffet?
This spreads your money across different investments to reduce risk.
What is diversification?
When stock prices are falling over time, it's called this type of market.
What is a bear market?
You may wonder why Cupertino is on your weather app, it's where this tech company was founded.
What is Apple?
Daily Double: This meme coin started out as a joke but gained popularity.
What is Dogecoin?
This event caused a global economic downturn in the late 2000s.
What is the 2008 Financial Crisis?
This type of fund trades on an exchange like a stock but holds a collection of assets.
What is an ETF (Exchange-Traded Fund)?
This social media-fueled event caused shares of GameStop (GME) to skyrocket in 2021.
What is a short-squeeze?
This is the central bank of the U.S. Government.
What is the Federal Reserve (the Fed)?
This order buys or sells a stock immediately at the current price.
What is a market order?
Originally shipping DVDs to your house, it soon replaced Blockbuster with its streaming capabilities.
What is Netflix?
This technology powers cryptocurrencies.
What is blockchain?
This happens when investors panic and sell everything quickly.
What is a market crash?
This term describes a sudden drop of 10% or more in the stock market.
What is a correction?
Warren Buffett owns this company, which is well-known in the world of real estate and worth nearly $500 a share.
What is Berkshire Hathaway (BRK-B)
This is what you naturally incur when investing in the stock market.
What is risk?
This arrangement sets a specific price at which you want to buy or sell.
What is a limit order?
If you have ever done research, chances are you used this to find your answer.
What is Google?
Extreme price swings in crypto are described with this term.
What is volatility?
During the 2008 Financial Crisis, this institution had the biggest bailout price tag at roughly $182 billion.
What was AIG (American International Group)?
This type of diversification strategy reduces risk by investing across different asset classes like stocks, bonds, and real estate.
What is asset allocation?
This term describes the risk that affects the entire market, not just a single company.
What is systemic risk?