The Basics (What's that thing?)
This is a tiny piece of ownership in a company.
What is a Stock?
Ulta's "Price Tag" (P/E Ratio) was around 26. Is this considered a bargain or a premium price compared to a company with a P/E of 10?
What is a Premium?
This is the famous street in New York City that is the heart of the American financial world.
What is Wall Street?
The golden rule of investing: "Don't put all your eggs in one basket." This is called...
What is Diversification?
In the movie The Wolf of Wall Street, Jordan Belfort makes his fortune selling these low-priced, highly risky stocks.
What are Penny Stocks?
This represents the "Price Tag" of a stock; it tells you how much you are paying for every $1 of profit the company makes.
What is the P/E ratio?
This metric, which was nearly 48% for Ulta, acts like a "Management Grade" for how well they use investors' money.
What is ROE (Return on Equity)?
This index tracks 500 of the largest companies in the U.S. and is often used to say "how the market is doing."
What is the S&P 500?
Using "Fake Money" to practice trading before using real cash is often called this.
What is Paper Trading?
This famous 2021 event involved Reddit users on "r/WallStreetBets" buying so much of a certain video game retailer's stock that they nearly crashed several hedge funds.
What is the GameStop (GME) Short Squeeze?
When a company shares some of its profits directly back to its shareholders in cash.
What is a dividend?
If Ulta has $1.30 for every $1.00 they owe in short-term bills, they are safe. This ratio is called...
What is the Current Ratio?
This is the tech-heavy stock exchange where companies like Apple, Amazon, and Ulta are listed.
What is the NASDAQ?
This type of stock order tells your broker to buy a stock only if it reaches a specific price or better.
What is a Limit Order?
This term refers to a "digital currency" like Bitcoin or Ethereum that isn't controlled by any government.
What is Cryptocurrency?
This animal represents a market that is charging upward and doing well.
What is a Bull? (Think: Bulls toss their horns up)
Most of Ulta’s value is held in "Lipstick on the shelves." In finance, these products waiting to be sold are called...
What is Inventory?
When a private company offers its stock to the public for the very first time, it is called an...
What is an IPO (Initial Public Offering)?
This is an investment that holds a "basket" of many different stocks so you don't have to pick individual ones.
What is an ETF (or Mutual Fund)?
This 2015 movie, starring Steve Carell and Ryan Gosling, explains how a group of investors predicted the 2008 housing market crash.
What is The Big Short?
This animal represents a market where prices are falling and the outlook is gloomy.
What is a Bear? (Think: Bears swipe their paws down.)
Ulta’s Gross Margin is 39%. If they sell a $10 product, how much "Gross Profit" is left after paying the supplier?
What is $3.90?
This is the "ID Badge" for a stock, usually 1–4 letters long (e.g., ULTA, AAPL, AMZN).
What is a Ticker Symbol?
If you "Short" a stock, are you betting that the price will go UP or DOWN?
What is DOWN?
In the movie Trading Places, two characters make a fortune by trading "Futures" contracts for this breakfast beverage staple.
What is Frozen Concentrated Orange Juice?