Explore tens of thousands of sets crafted by our community.
Stock Market Basics
20
Flashcards
0/20
What is a mutual fund?
A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and money market instruments.
What does PE ratio mean?
PE ratio stands for price-to-earnings ratio, a measure of the current share price relative to its per-share earnings.
What is a limit order?
A limit order is an order to buy or sell a stock at a specific price or better.
What is market capitalization?
Market capitalization is the total market value of a company's outstanding shares, calculated by multiplying the current stock price by the total number of outstanding shares.
What are blue-chip stocks?
Blue-chip stocks are shares of large, well-established, and financially sound companies with a history of reliable performance.
What does it mean to 'short sell' a stock?
To 'short sell' a stock means to sell it with the expectation that you will be able to buy it back at a lower price in the future.
What is a bull market?
A bull market is a market condition where securities are rising or are expected to rise.
What is volume in stock trading?
Volume in stock trading refers to the number of shares traded during a given period of time.
What does it mean to 'go long' on a stock?
To 'go long' on a stock means to buy it with the expectation that it will increase in value.
What is a dividend?
A dividend is a portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.
What is a stock?
A stock is a share of ownership in a company, representing a claim on part of the company's assets and earnings.
What is a ticker symbol?
A ticker symbol is a unique series of letters assigned to a security for trading purposes.
What is a bear market?
A bear market is a condition in which securities prices fall and widespread pessimism causes a downward spiral to persist.
What is the stock market?
The stock market is a collection of markets where stocks (pieces of ownership in businesses) are traded between investors.
What is diversification?
Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited.
What does IPO stand for?
IPO stands for Initial Public Offering, which is when a company first sells its shares to the public.
What is a brokerage account?
A brokerage account is an arrangement that allows an investor to deposit funds and place investment orders with a licensed brokerage firm.
What is a portfolio?
A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.
What is an ETF?
An ETF, or Exchange Traded Fund, is a type of investment fund and exchange-traded product, i.e., they are traded on stock exchanges.
What is a market order?
A market order is an order to buy or sell a stock at the best available current price.
© Hypatia.Tech. 2024 All rights reserved.