Stock Market 101
Part of a company's profits (earnings) that it pays as money to stockholders is called?
Dividend
What is someone's Net Worth?
The total wealth of an individual, company, or household, taking account of all financial assets and liabilities.
Free Points
Felicia's portfolio reads 2.01% for "Today's Gains". What does that mean?
"Today's gains" is the indicative gain on a portfolio position since the open price that morning. (Usually a percentage).
In this case, it means Felica's portfolio grew 2.01% today.
What is an IPO?
Initial price offering
What is Cash Borrowed?
Cash Borrowed is how much money you've borrowed from your trades.
What type of investor doesn’t like to take risk?
A Conservative Investor
What's the difference between overall gains and overall returns?
They both represent total gains on a portfolio position adding unrealized(haven't sold yet)gains on current holdings, realized (already sold) gain from sales, and dividends.
If Mr. Barker bought 100 shares of GE for $15 and sold them at $25. What is his profit?
1000 dollars
What is %Holdings (Percent Holdings)?
Name an Investor you know, what you like about them, and something about their portfolio (Net Worth, A Stock They Own, and etc.).
Points Determined Post Fact Checking.
An electronic, computer-linked market that completes trades over a vast computer network.
NASDAQ
What's the difference between transaction date and order date?
Order date is when you ordered the stock. Transaction date is when the order has been executed/completed.
What's the difference between Cash Remaining and Buying Power?
Cash Remaining is the amount of cash available to make a trade.
Buying Power is the amount of cash available to make a trade, plus any margins(borrowing money from a broker in order to purchase stocks).
What is diversification, and why is important?
Diversification is a strategy that consists of having a wide variety of investments within a portfolio. Portfolio holdings can be diversified across asset classes and within classes, and also geographically—by investing in both domestic and foreign markets. It's important because it minimizes risk.
What is Warren Buffet's Net Worth? Does he prefer long term or short term investments?
87.3 billion and Long Term "Value" Investments.
A great way to learn investing is by studying a stock investor that has been successful. (Meaning, their portfolios and philosophies.)
An index of 500 large company stocks that represent all major sectors of the U.S. economy. Many people think this gauges the direction of the Stock Market in general.
S&P 500
What is a "Short Reserve"?
The amount of money required to close short positions in your account. (This pertains to short-selling.)
What is "Short Selling"?
Short selling occurs when an investor borrows a security and sells it on the open market, planning to buy it back later for less money. Short-sellers bet on, and profit from, a drop in a security's price. Short selling has a high risk/reward ratio: It can offer big profits, but losses can mount quickly and infinitely.
What is Bill Ackman's Net Worth? Does he prefer long term or short term investing?
$2.2 billion, and Long Term "Activist" investing.
Activist means he buys a stock that's undervalued and pushes for everyone to realize the same value.
A great way to learn investing is by studying a stock investor that has been successful. (Meaning, their portfolios and philosophies.)
What’s a difference between an ETF and an Index Fund?
Answer Varies:
- When they're traded?
- How to buy them?
- ETFs are generally cheaper