1
Money is ________ according to the Bible.
Amoral
The higher the risk you take, the ________ the return.
higher
Where do we trade stocks in the United States?
NYSE
What is the reason that companies choose to go public?
To raise capital
What does EPS Stand for
Earnings per share
What does P/E stand for
Price to earnings ratio
Savings accounts, gambling, CDs, stocks, real estate. List these in order from least risky to most risky.
Savings accounts, CDs, Stocks, real estate, gambling
ROI stands for what?
Return on investment
Which type of company can you buy stock from?
Publicly Traded.
What is the equation for EPS
EPS = Net income / outstanding shares
What is the equation for P/E Ratio?
P/E = Share price / EPS
What is a share of stock?
It shows that you have ownership in that company as an investor.
You have $50,000 to invest in Google. Google is trading at $2,250 per share. How many shares of Google can I buy?
50,000 / 2250 = 22.22 shares
If Apples net income is $3,500,000 and outstanding shares are 45,000 then what is the EPS?
77.77
Cintas has an EPS of 45 and is currently trading at $315 per share. Solve for the P/E ratio for Cintas.
7
True or False? Market, Limit, Go, Stop, Trailing stop are all types of market orders when dealing with stocks?
If False, which one is not a type of market order?
What kind of companies can you invest in?
Public and private. You can invest in both, only public companies offer shares of stock for you to purchase.
List 3 ways to diversify your stocks.
1. across types (stocks, bonds, real estate)
2. Across Sectors (raw materials, banking etc.)
3. Domestic vs International investments
Tell me the Bible verses we discussed in class about how to handle wealth. What is the point or moral of the story?
Matthew 25: 14-30 Parable of the Talents. When God blesses us with Talents (wealth) He wants us to go out and produce more talents. Use them for His Glory. Do not be like the one servant who buried his talent and did nothing with it.
What are the 3 market indices that gauge how the market is doing each day?
Dow Jones, S&P 500 and Nasdaq 100