Podcast
Questions and Answers
What is the primary function of a stock exchange?
What is the primary function of a stock exchange?
- To facilitate the trading of stocks and shares. (correct)
- To provide insurance for stock investments.
- To issue new shares to the public.
- To regulate the supply of shares in the market.
What does P/E Ratio stand for in the context of stock investing?
What does P/E Ratio stand for in the context of stock investing?
- Portfolio Evaluation Rate
- Public Equity Rate
- Price to Equity Return
- Price to Earnings Ratio (correct)
Which of the following describes a limit order?
Which of the following describes a limit order?
- An order that can only be placed during market hours.
- An order that executes immediately at the best available price.
- An order to buy or sell a stock at a specific price or better. (correct)
- An order that automatically sells a stock once it reaches a certain price.
Which factor does NOT typically influence stock prices?
Which factor does NOT typically influence stock prices?
What is meant by diversification in investing?
What is meant by diversification in investing?
Flashcards
What is the Stock Market?
What is the Stock Market?
A marketplace where stocks and shares of publicly traded companies are bought and sold.
What is a Stock/Share?
What is a Stock/Share?
A unit of ownership in a company, representing a claim to a portion of the company's assets and profits.
What is a Stock Exchange?
What is a Stock Exchange?
A formal organization where stocks and shares are bought and sold, facilitating the exchange of securities.
What is an Initial Public Offering (IPO)?
What is an Initial Public Offering (IPO)?
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What is a Broker?
What is a Broker?
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Study Notes
Stock Market Overview
- Definition: A marketplace where stocks are bought and sold.
- Key Terms:
- Stock Exchange: Platforms where stocks are listed and traded (e.g., NYSE, NASDAQ).
- Securities: Stocks and other financial instruments.
- Stocks and Shares:
- Stock: Represents ownership in a corporation.
- Share: A single unit of stock.
- Equity: Ownership stake in a company.
- Shareholder: An owner of company stock.
Stock Exchanges
- Major Exchanges: NYSE, NASDAQ.
- Definition: Platforms where stocks are listed and traded.
Initial Public Offering (IPO)
- Definition: The first sale of a company's stock to the public.
- Process:
- Underwriting
- Pricing
- Going Public
Brokers and Trading Platforms
- Broker: Facilitates stock buying/selling for a fee.
- Online Trading Platforms: Digital interfaces for trading.
- Key Terms:
- Commission: Fees for trading.
- Brokerage Account: Account used for trading.
Stock Pricing and Supply/Demand
- Concept: Stock prices are dependent on supply and demand.
- Key Factors:
- Company Performance
- Market Sentiment
- Company Performance is often evaluated using indices
Market Indices
- Definition: Measures of a group of stocks' performance.
- Major Indices: Examples are Dow Jones, S&P 500, and NASDAQ.
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