Investing Basics
The process of allocating money with the expectation of generating income or profit over time.
What is investing?
A share representing partial ownership in a company.
What is a stock?
Which type of investments have the highest risk (name 2)?
Stocks and Cryptocurrency
What is Yahoo Finance?
True or False: Stocks represent a loan to a company
False – stocks represent ownership, while bonds represent loans
Interest earned on both the initial investment and past interest, allowing money to grow exponentially.
What is compound interest?
A unique series of letters representing a company's stock on an exchange, e.g., SHOP.TO for Shopify.
What is a ticker symbol?
Spreading investments across different asset types to reduce risk
What is diversification?
he last price a stock was traded at before the market closed for the day
What is the closing price?
True or False: Bonds are always risk-free.
False – corporate bonds can still have risks, though government bonds are safer.
Name three types of investments
Stocks, bonds, real estate, mutual funds, cryptocurrency, savings accounts
The market where everyone is buying stocks so prices are rising.
What is a bull market?
Bonds and savings accounts are both...
What is a low risk investment?
What buyers want to pay for a stock.
What is bid price?
True or False: Real estate is considered a high-risk investment
False – it is usually a medium-risk investment, though market fluctuations can impact risk
What is the difference between saving and investing?
Saving is setting aside money with minimal risk, while investing is putting money into assets that can grow over time but involve risk.
When a company sells shares to the public for the first time.
What is an IPO (Initial Public Offering)?
Investments you can buy that pools stocks and bonds together.
What is a mutual fund?
The total value of a company's outstanding shares, calculated as stock price × number of shares
What is market capitalization?
True or False: The TSX is the main stock exchange in Canada.
True – the Toronto Stock Exchange
A portion of a company's profits paid to shareholders.
What are dividends?
When a stock experiences frequent and significant price changes.
What is a volatile stock?
What is the relationship between age and investment risk tolerance?
Younger investors can typically take on more risk because they have more time to recover from losses, while older investors may prefer lower-risk investments to protect their savings
The lowest price a stock has been this year called
What is 52-week low?
True or False: A stock with a high price is always a better investment than a stock with a low price.
False – A stock’s price alone does not determine its value; investors should also consider factors like earnings, growth potential, and market conditions.