Dollar Cost Averaging
This investing strategy involves regularly investing a fixed amount of money regardless of market conditions.
What is Dollar Cost Averaging?
This term describes the practice of borrowing money from a broker to buy more securities.
What is buying on margin?
This is what happens when you borrow a stock and sell it, hoping to buy it back at a lower price.
What is short selling?
This U.S. city is home to the world’s most famous financial district.
What is New York City?
This ratio, expressed as an acronym, compares a company’s stock price to its earnings per share.
What is the P/E ratio?
This is the primary benefit of Dollar Cost Averaging for nervous or new investors.
What is reducing the emotional impact of market volatility?
This is what you pay your broker when borrowing money to invest.
What is interest?
This is the outcome a short seller hopes for after initiating a short position.
What is a decrease in the stock's price?
This is the name of the most well-known stock exchange located on Wall Street.
What is the New York Stock Exchange?
This acronym stands for a major U.S. stock index composed of 500 companies.
What is the S&P 500?
Over time, Dollar Cost Averaging tends to result in this type of average share price.
What is a lower average cost per share?
This is what happens to your profits and losses when you trade with margin.
What is they get bigger (amplified)?
This video game retailer became famous for its short squeeze in 2021.
What is GameStop?
This person manages portfolios of stocks, bonds, or other assets for individuals or institutions.
What is a portfolio manager?
This acronym stands for a type of fund that trades like a stock and typically tracks an index.
What is an ETF?
This kind of market condition makes Dollar Cost Averaging especially useful.
What is a fluctuating or volatile market?
This is a key reason why margin accounts are considered high-risk.
What is losses can be amplified beyond your initial investment?
This is the reason short selling carries unlimited risk.
What is there’s no ceiling on how high a stock’s price can go?
This professional buys and sells securities on behalf of clients or a firm.
What is a trader?
This acronym refers to the process of a private company offering stock to the public for the first time.
What is an IPO?
This is one common criticism of Dollar Cost Averaging when compared to lump-sum investing.
What is it can produce lower returns in consistently rising markets?
This happens when your account doesn’t have enough value to cover your borrowed amount.
What is a margin call?
This term describes a rapid increase in a stock’s price caused by short sellers being forced to buy back shares.
What is a short squeeze?
This is the title for someone who helps companies raise money and advises on mergers and acquisitions.
What is an investment banker?
This acronym represents a measure of how effectively an investment was.
ROI