Podcast
Questions and Answers
What is the difference between buying a stock and buying a cryptocurrency?
What is the difference between buying a stock and buying a cryptocurrency?
- Stocks have voting rights while cryptocurrencies do not.
- Stocks have physical components while cryptocurrencies do not. (correct)
- Stocks are publicly traded while cryptocurrencies are not.
- Stocks provide dividends while cryptocurrencies do not.
What is a capital gain?
What is a capital gain?
- The amount of money an investor makes by selling their stock.
- The amount of money an investor makes by buying a stock.
- The difference between what an investor spends for an asset and what they get when they sell it. (correct)
- The difference between the value of a stock and the value of a cryptocurrency.
What is the name of a unit of cryptocurrency?
What is the name of a unit of cryptocurrency?
- Token (correct)
- Share
- Stake
- Investment
What is the purpose of owning shares of a company?
What is the purpose of owning shares of a company?
What is the purpose of buying a stock?
What is the purpose of buying a stock?
What does owning a stock provide?
What does owning a stock provide?
What is the purpose of a cryptocurrency?
What is the purpose of a cryptocurrency?
What is an advantage of owning a stock?
What is an advantage of owning a stock?
What is the purpose of buying a cryptocurrency?
What is the purpose of buying a cryptocurrency?
What is a share of stock?
What is a share of stock?
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Study Notes
- Stocks are the ownership stakes of a publicly traded corporation.
- Each share of stock you purchase gives you a percentage stake in the company.
- An investor can profit by selling their stock to other investors.
- A capital gain is the difference between what you spend for the asset and what you get when you sell it.
- Besides that, the advantages of owning shares depend entirely on the company.
- Stocks can also gain value by providing dividends to their shareholders and may include voting rights.
- A cryptocurrency is a digital asset that exists solely on the internet, which means it doesn't have a physical component and only exists as a record in an online ledger that tracks ownership.
- A unit of cryptocurrency is called a token, much as a unit of stock is called a share.
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