Investment basics
This is the term for a regular payment made by a company to its shareholders from its profits.
What is a dividend?
This type of investment represents ownership in a company and can be traded on stock exchanges.
What is stock? or stock
This economic term refers to the total value of all goods and services produced in a country within a year.
What is Gross Domestic Product (GDP)?
In 2023, this semiconductor company saw a significant rise in stock value due to its advances in AI technology.
What is NVIDIA Corporation (NVDA)?
LMT
What is Lockheed Martin?
This strategy involves spreading investments across different assets to reduce risk.
What is diversification? or diversification
This is the term for the total value of all a company's shares of stock.
What is market capitalization (market cap)?
This is the general increase in prices over time, leading to a decrease in the purchasing power of money.
What is inflation?
This investment metric, often used to evaluate the performance of a stock, is calculated by dividing the stock's current price by its earnings per share.
What is the price-to-earnings ratio (P/E ratio)?
BA
What is Boeing?
This financial instrument is a loan made to a corporation or government that promises to repay with interest over time.
What is a bond? or bond
This term refers to the first time a company offers its stock to the public.
What is an Initial Public Offering (IPO)?
This is the term for the central bank of the United States, which controls the country’s monetary policy.
What is the Federal Reserve?
This term describes a market condition where stock prices are rising or are expected to rise, often characterized by investor optimism.
What is a bull market?
NOC
What is Northrop Grumman Corporation?
This ratio is commonly used to evaluate the profitability of an investment, calculated by dividing net income by shareholders' equity.
What is return on equity (ROE)?
This is a strategy where investors buy stocks when prices are low and sell them when prices rise.
What is buy low, sell high?
This term describes the phenomenon where a currency's value rises compared to other currencies, making exports more expensive and imports cheaper.
What is currency appreciation?
Which stock was considered the best performer of 2023?
AbercrmFitch (ANF) gained 285.1%
RTX
What is RTX Corporation?
This ratio measures a company's financial leverage, calculated by dividing total debt by total equity.
What is the debt-to-equity ratio?
This type of stock has fixed dividend payments and priority over common stock but typically doesn't offer voting rights.
What is preferred stock?
This economic principle states that as production increases, the additional output generated by each additional unit of input will eventually decline.
What is diminishing marginal returns?
What is the current stock price of Apple Inc. (AAPL)?
Check, 10% range
LHX
What is L3Harris?