What is the Stock Market?
This is what investors are actually buying when they purchase stock in a company.
What is partial ownership (shares of a company)?
This type of account is required to buy and sell stocks.
What is a brokerage account?
An organized and regulated marketplace where buyers and sellers trade financial instruments.
What is a stock exchange?
A tradable financial asset that represents ownership, a loan, or a contractual right.
What is a security?
The practice of buying and selling financial instruments within the same day to profit from small, volatile price fluctuations.(highly risky)
What is Day Trading?
The stock market is open during these standard U.S. trading hours.
What is 9:30 AM – 4:00 PM EST, Monday through Friday?
Before placing a trade, this must be done first in a brokerage account.
What is depositing money (funding the account)?
One of the main roles of an exchange is pairing these two groups together to complete trades.
Who are buyers and sellers?
This type of security represents ownership in a company and typically carries higher risk and return potential.
What are stocks (equity securities)?
This was the year when The Wolf of Wall Street movie was released.
When was 2013?
The process by which a private company first sells shares to the public.
What is an IPO (Initial Public Offering)?
These two well-known brokerage firms allow investors to open accounts and trade stocks.
What are Fidelity Investments and Charles Schwab Corporation?
This term describes how exchanges help determine the fair market value of a security.
What is price discovery?
These securities represent loans made to governments or corporations and provide interest payments and principal repayment at maturity.
What are bonds (debt securities)?
An advanced trading strategy where an investor borrows a stock that they believe is overvalued, sells it at the current price, and aims to buy it back later at a lower price to return to the lender, profiting from the difference.
What is Short Selling?
Stock prices primarily move because of these two forces in the market.
What are supply and demand?
This type of brokerage account is designed for retirement and offers tax advantages.
What is a Roth IRA or Traditional IRA?
This major U.S. exchange was founded in 1792 and has a physical trading floor on Wall Street.
What is the New York Stock Exchange (NYSE)?
This investment pools money from many investors to create a diversified portfolio managed either actively or passively.
What is a mutual fund?
Buying and Selling contracts that grant the right, but not the obligation, to buy or sell an underlying asset at a set price by a specific date.
What is Options Trading?
These two main ways investors make money in the stock market involve selling shares for profit or receiving company payouts.
What are capital gains and dividends?
Most modern brokerage firms charge this amount in commission for stock trades.
What is $0?
Founded in 1971, this fully electronic exchange is known for listing many large technology companies.
What is NASDAQ?
This investment trades throughout the day like a stock but offers built-in diversification like a fund.
What is an ETF (Exchange-Traded Fund)?
The number 1 investment you can make that guarantees profitable returns.
What is yourself?