Market Structure
What is the role of the Securities and Exchange Commission (SEC)?
What is regulating the stock market and ensuring fair trading?
What usually happens to a stock's price if the company announces strong earnings?
What is it increases?
How do interest rates typically affect stock prices?
What is cause them to fall?
What is diversification in investment and why is it used?
What is spreading investments across multiple assets to reduce risk?
How many sectors does the Global Industry Classification Standard (GICS) include?
What is 11?
This role is responsible for facilitating liquidity and continuous trading on the stock exchange.
What is a market maker?
This term describes when a stock's market price is lower than its intrinsic value.
What is undervalued?
What does the unemployment rate measure in an economy?
What is the percentage of people actively seeking work?
Which investment strategy focuses on buying undervalued stocks?
What is value investing?
Which sector is significantly impacted by changes in interest rates?
What is the Financials sector?
Identify the major stock exchange known for its high concentration of technology stocks.
What is Nasdaq?
What is the purpose of using "comparables" in stock valuation?
What event is most likely to cause a drop in stock prices?
What is a rise in interest rates?
What type of investment is considered low-risk and often government-backed?
What are government bonds?
What does sector rotation involve in stock investing?
What is shifting investments from one sector to another based on economic cycles?
This is how the total value of a company’s stock is calculated.
What is multiplying stock price by shares outstanding
Explain the difference between market price and intrinsic value of a stock.
What is market price is what the stock trades at, while intrinsic value is its true worth based on financial analysis?
What type of economic indicator is used to predict future economic activity?
What is a leading economic indicator?
Describe dollar-cost averaging as an investment strategy.
What is buying more shares when stock prices drop to lower the average cost per share?
Which sector benefits most directly from rising oil prices?
What is the Energy sector?
This unique code, often comprising letters, is used to identify listed companies on a stock exchange.
What is a stock ticker symbol?
This method involves forecasting future cash flows to determine a company's worth.
What is discounted cash flow (DCF) analysis?
Describe a cyclical stock and its performance relation to the economy.
What is a stock that performs well in strong economies and poorly in recessions?
Explain the term "risk management" in the context of investment strategies.
What is the process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize those risks?
Identify the sector expected to grow due to demographic shifts like an aging population.
What is the Healthcare sector?