Short Selling
P/E Ratio
Order Types
Buy or Short
100

You short 50 shares at 70 dollars each and the price drops to 60 dollars. What id your profit?

500 dollars

100

What is a P/E ratio.

Comparison of the price of a stock to its earnings.

100

What is a market order. 

An order to buy/sell at the current price

100

Apple's new Iphone does not sell as expected

Short

200

How you profit in short selling

Stock price goes down

200

Is lower or higher PE ratio better?

Lower

200

What is a limit order

An order to buy/sell a stock at a specific price

200

American Airlines has the lowest PE ratio of all airlines in America.

Buy

300

Name a reason you would short a stock.

...

300

A PE ratio helps to determine if:

A company is undervalued or overvalued.

300

What is the drawback of a limit order?

No guarantee your trade gets filled.

300

Target stock has reached levels of resistance

Short

400

Why is short selling risky?

Unlimited losses, but limited profits.

400

You should onyl compare PE values of:

companies within the same sector

400

Define support and resistance.

Support: buyers tend to buy at this price

Resistance: Sellers tend to sell at this price

400

An S&P 500 index fund has done poorly this month

Always buy S&P 500, in the long run it always goes up

500

Give a technical explanation of how short selling works

You borrow a stock from a broker, sell it, and buy it back to return it.

500

Name 3 companies that a PE ratio would help you decide between.

...

500

What is this an example of?


Support level.

500

Walmart has a lower PE ration than Roblox

Trick question, not enough information.