Stock Market Basics
This term refers to a share of ownership in a company.
Stock
A market in which stock prices are rising.
Bull Market
Profit made when you sell a stock for more than you paid.
Capital Gain
Someone who buys assets hoping to grow money steadily over time
Investor
A way of measuring how likely something is to happen.
Probability
This term describes the current price at which a stock is bought or sold.
Market Price
What is "Volatility"?
This term describes how much a stock’s price goes up and down
A payment from a company’s profits to shareholders.
Dividend
Define: Gambler
Someone who acts mostly on luck with high risk.
List 2 things that the WA state lottery funds.
- Economic Development Reserve
- K12 Education
- General Fund
- Problem Gambling
This is a marketplace where stocks are bought and sold.
Stock Exchange
Spreading investments across assets to reduce risk.
Diversification
What is "Compound Interest"
Interest earned on both the principal and accumulated interest.
What is the "House Edge"
The built‑in advantage ensuring casinos profit long‑term.
Who is Gabby Thomas & what was her role in national issue of sports betting? (What happened to her and what is being done about her situation?)
American sprinter that was heckled by a gambler. She lost her race and he won his sports bet. Investigation into "prop bets".
What is a "Portfolio"
A collection of investments owned by one person.
What is "Liquidity"?
How easily an investment can be turned into cash.
What is "Expected Value"?
The probability‑based average win or loss per round of a game.
Explain the "Gambler's Fallacy".
Mistaken belief that the opposite result is “due” next.
$113 Billion is significant to the American public...why?
The approximate amount of how much do Americans spend each year on lottery tickets
What does IPO stand for...and what is it?
Initial Public Offering
The first time a company sells its stock to the public. (Acronym & full name)
What are the (4) major investment asset classes and list them in order of #1-4;
1= lowest risk to 4 = highest risk.
1 = Cash
2 = Fixed Income/Bonds
3 = Equities/Stocks
4 = Alternative Investments
If you roll a dice (6 sides) one time, what is the probability of rolling a number greater than 4?
Rolls 5 & 6
2/6 = 1/3 = 33.3%
See Wong PPT Slide
EV = -1.105 or LOSE $1.105 each spin
Why is 60% an important statistic in our Unit for teenagers?
It's the approximate percentage of High School aged adolescents have gambled for money in the past year