ESS Stock Market Flashcard

Front

What is the largest stock exchange?

Back

NYSE (New York Stock Exchange) is the largest stock exchange in the world by market capitalization.

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What does it mean when a stock is traded at its lowest dollar amount for the day?

Back

It indicates the minimum price at which the stock was sold during that trading day.

Front

If I own 100 shares of a company and the dividend per share is $0.40, how much will I receive in total dividends?

Back

You will receive $40.00 in total dividends (100 shares x $0.40 per share).

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What is the importance of diversifying a stock portfolio?

Back

Diversifying helps to reduce risk by spreading investments across various assets, minimizing the impact of a poor-performing investment.

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What does a bear market indicate about stock prices?

Back

A bear market indicates that stock prices are generally declining.

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What is a dividend?

Back

A dividend is a portion of a company's earnings distributed to shareholders, usually in cash or additional shares.

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What is the difference between a bull market and a bear market?

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A bull market is characterized by rising stock prices, while a bear market is characterized by falling stock prices.

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What is market capitalization?

Back

Market capitalization is the total market value of a company's outstanding shares, calculated by multiplying the share price by the total number of shares.

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What does it mean to 'buy low, sell high'?

Back

It refers to the investment strategy of purchasing stocks at a low price and selling them at a higher price to make a profit.

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What is the S&P 500?

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The S&P 500 is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.