Vocabulary
Money used to purchase an asset with the goal of making a profit is known as this
What is Investing?
The "EPS" stands for this
What is Earnings per Share?
When you purchase stock in a company, you become a(n) _________ of the company
What is owner?
The interest rate of a bond is known as this
What is coupon?
A type of fund that tries to match or outperform a specific index is known as this
What is an Index Fund?
A type of investment consisting of a portfolio of stocks, bonds, or other securities is known as this
What are Mutual Funds?
The average PE ratio range is
What is 15-25?
The stock index that is considered the "best" indicator of the overall stock market is this index
What is the S&P 500?
The 2 main issuers of bonds are
What are corporations and the government?
The price at which investors buy and sell fund shares is known as this
What is the Net Asset Value (NAV)?
The practice of spreading money among different investments to reduce risk is known as this
What is Diversification?
The Rule of 72 allows a person to know how long it will take to do this
What is double their money?
When a company divides the existing shares of its stock into multiple new shares, this occurs
What is a stock split?
Bonds issued by state/local governments are known as these
What are municipal bonds?
A fund where a professional manager selects investments in an attempt to outperform the market
What is an Actively Managed Fund?
The statistical measure of the change in price of a given security
What is Volatility?
Calculate the EPS given the following info:
Price per Share: $10
Total Earnings: $1,000
Outstanding Shares: 1,000
What is $1?
When you purchase stock in a company, you become a(n) _________ of the company
What is owner?
A bond with a AAA rating is known as this type of bond
What is an investment bond?
The cost to manage a fund is known as the ___ ___
The benchmark number to be considered good is __?
What is Expense Ratio?
What is less than 0.2%?
Having an abundance of valuable possessions or money that is sustainable long term
What is Wealth?
Calculate the PE ratio given the following info:
Price per Share - $20
Total Earnings: $1,000
Earnings per Share: $1
What is 20?
The 2 major stock exchanges in the U.S. (NYSE & NASDAQ) represent this percentage of the entire global market value
What is 46%?
The 3 major bond rating agencies we talked about in this class are
What are S&P, Moody's, and Fitch?
The Barstool/Dave Portnoy backed fund "Buzz" is an example of this type of fund
What is an Exchange Traded Fund (ETF)