Fun With Funds
A portfolio of investments managed by professionals
What is a mutual fund?
A contract giving an investor the right, but not the obligation, to buy or sell stock at a set price
What is an options contract?
Bears Buy-
Puts
Borrow money from your broker to buy stocks
What is Margin trading?
Short selling is profitable when:
The stock price decreases
The total assets divided by the number of shares in the fund
What is Net Asset Value (NAV)?
A call option is profitable when
The stock price is above the strike price
Most option contracts expire on this day each month
What is the third Friday of the month?
A demand from a broker for the investor to add funds to their account
What is a margin call?
Name a stock that "squeezed" in January 2021... OTHER THAN Gamestop (GME)
What are-
AMC
KOSS
BBBY
**DAILY DOUBLE**
Only the team that initially selects a Daily Double may respond to that clue. The team may wager any or all of their current points on that question, or if they have less than 500 points, they may wager up to 500 points.
A fund that doesn’t charge sales commissions
What is a no-load mutual fund?
A put option is used when an investor expects:
The stock price to decrease
If you sell a put option and the stock price falls significantly, you may be-
Forced to buy the stock at the strike price
**DAILY DOUBLE**
Only the team that initially selects a Daily Double may respond to that clue. The team may wager any or all of their current points on that question, or if they have less than 500 points, they may wager up to 500 points.
The minimum level of equity required in a margin account
What is the maintenance margin?
If a stock price rises after an investor has shorted it, what happens?
The investor loses money
Investors are charged high fees for management if a mutual fund has a high
Expense ratio
If a stock is trading at $60 and a trader holds a call option with a $50 strike price, the option is:
In the money
Selling a call option while owning the underlying stock
What is a covered call strategy?
Margin loans make revenue for the broker by charging this
What is interest?
A rising stock price forces short sellers to buy back shares
What is a short squeeze?
Mutual funds generate returns through these three ways
What are:
Capital appreciation; Dividends, interest income
The price at which the stock must be bought or sold if the option is exercised
What is the strike price?
Three factors that affect an option contract's value
-Time until expiration
-Volatility of the stock
-The stock price
Margin gives investors this superpower
What is Leverage?
Brokerage Accounts must have this feature enabled in order to do short selling
What is margin borrowing?