Brother Paul
A stock is a small piece of ownership in a company.
The stock market is a place where people buy and sell stocks.
What is the stock market?
It is the highest price a stock has reached in the last year.
What is a '52-week high'?
This represents the total number of shares bought and sold during the day.
What is volume?
Under $2 Billion
What is a small cap?
Long-term investing is like planting a tree—it takes time and patience to grow wealth.
What is the analogy used for long-term investing?
It means most stock prices rise.
What does it mean when the stock market 'goes up'?
This is calculated by multiplying the stock price by the number of shares.
How is 'Market Cap' calculated?
This is the percentage of the stock price paid as dividends each year.
What is divided yields?
Small-cap companies are riskier but grow faster; large-cap companies are more stable.
What is the key difference between small-cap and large-cap companies?
A shareholder is a person who owns one or more stocks in a company.
Who is a shareholder?
Money a company pays to shareholders from its profits.
What is dividend?
This measures how expensive a stock is compared to the company’s earnings, calculated by dividing the stock price by earnings per share (EPS).
Explain the P/E Ratio.
Over $10 Billion
What is a Large Cap?
$2 Billion to $10 Billion
What is a mid cap?
Small-cap companies are riskier but grow faster; large-cap companies are more stable.
What is the key difference between small-cap and large-cap companies?
The profit made when selling a stock for more than its purchase price.
What is a capital gain?
When a stock is priced lower than its worth, meaning it could be a good deal.
What does it mean if a stock is 'undervalued'?
Two main ways investors make money from stocks?
What are capital gain and earing dividends?
The analogy used for long-term investing.
What is it takes time and patience to grow wealth?
Companies sell stocks to raise money to grow their business.
Why do companies sell stocks?
This determined by supply and demand.
What determines stock prices?
Why is research important in stock investment?
Research is important to determine if a stock is a good investment and understand the risks.
Evaluate P/E Ratios, market cap, 52-week highs/lows, and overall trends.
What should an investor evaluate when considering a stock?
The 3rd planet from the sun.
What is Earth?