This term describes how actively a stock is traded in the market.
Stock Volume
Making another investment to protect against losses
Hedging
When interest rates go up, stock prices usually go
up?
down?
Stay stagnant?
down
This refers to a company’s total obligations or debts.
Liabilities
This investor founded Berkshire Hathaway.
Warren Buffet
This occurs when stock prices fall 20% or more from recent highs.
Bear Market
Using borrowed money to invest and increase possible gains or losses.
Leverage
This is when the government or central bank tries to control inflation by raising rates.
Monetary Policy
This ratio compares a company’s stock price to its earning per stock share
p/e ratio
This type of investor is known for betting against companies.
Short seller
This major U.S. stock exchange is known for tech-heavy companies like Apple and Nvidia.
Nasdaq
This means spreading your money across different investments to reduce risk.
Diversification
This is the U.S. central bank that controls interest rates.
Federal Reserve
This is the profit a company keeps after subtracting all expenses.
Net Income
This female investor is known for high-risk, high-reward trades and runs ARK Invest.
Cathie Wood
This is the difference between the highest price a buyer will pay and the lowest price a seller will accept.
Bid-ask spread
Adding money to your investments little by little over time.
dollar-cost averaging
This measures how expensive everyday goods are getting.
CPI ( Consumer Price Index)
This ratio measures a company’s profitability by comparing net income to revenue.
Net Profit Margin
This investor became famous for predicting and profiting from the 2008 housing crash.
Michael Burry
This type of risk affects the entire market and cannot be eliminated through diversification.
Systematic Risk
Investing in many companies at once through a single fund
Index investing
This is the combination of slow economic growth and high inflation.
Stagflation
This type of profit is calculated before interest and taxes are deducted.
Operating Income (Ebit)
This investor is known for the “All Weather Portfolio” strategy.
Ray Dalio