Stock Basics
This is what you call a single unit of ownership in a company.
Share
This popular index tracks 500 of the largest companies in the U.S. and is used as a general measure of the stock market's health.
S&P 500 (Standards & Poor)
Instead of picking individual stocks, this type of fund automatically tracks a market index like the S&P 500.
Index Fund
In early 2020, global stock markets crashed dramatically due to the economic uncertainty caused by this event.
COVID-19 Pandemic
This is the term for the total market value of all a company's outstanding shares, used to measure how big a company is.
Market Cap Estimate
This is the name of the building in New York City where the largest stock exchange in the world is located.
New York Stock Exchange (NYSE)
This is the name for the very first time a company sells its shares to the public.
Initial Public Offering (IPO)
This basic investing strategy means not putting all your eggs in one basket by spreading money across many different investments.
Diversifying
In 2008, the U.S. economy entered a severe recession largely triggered by the collapse of the ______ market.
"Housing" Market
This ILLEGAL act involves trading stocks using information that is not available to the general public.
Insider Trading
This is the money a company pays out to its shareholders from its profits, usually every three months.
When the overall stock market is falling and investors are pessimistic, it is named after this animal.
Bear Market
This is the term for the interest you earn on top of interest you've already earned, which causes your money to grow faster over time.
Compound Interest
This early 2000s crash happened when investors realized that many internet companies were wildly overvalued and had never made a profit.
Dot-Com Bubble Crash
This simple ratio compares a company's stock price to its annual earnings per share, and investors use it to judge if a stock is over or underpriced.
Price-to-Earnings Ratio (P/E Ratio)
When stock prices are rising and investors are optimistic, the market is named after this animal.
Bull Market
This is what it is called when you sell a stock for more than you paid for it.
Capital Gain
This workplace retirement account lets employees contribute pre-tax money from their paycheck to invest for the future.
401(k) Account
In 2021, everyday investors on Reddit banded together to drive up the price of this struggling video game retailer's stock, squeezing hedge funds that had bet against it.
GameStop (GME)
This federal agency was created after the 1929 crash to regulate the stock market and protect investors from fraud.
Securities and Exchange Commision (SEC)
This is the short abbreviation used to identify a stock on an exchange, like "TSLA" for Tesla.
Ticket Symbol
This is the word for how easily you can buy or sell an investment quickly without affecting its price.
Liquidity
This is the percentage return you earn on an investment over a year, used to compare different investments fairly.
Rate of Return
This catastrophic stock market crash in 1929 wiped out investors and helped trigger the Great Depression.
Stock Market Crash of 1929--Black Tuesday
This type of investor buys shares in a company believing the price will rise significantly over many years, rather than trying to make quick trades.