Financial Sectors Flashcard

Front

What is the purpose of the stock market?

Back

To provide a platform for buying and selling shares of publicly traded companies.

Front

What are the two main types of stock markets?

Back

primary market and secondary market

Front

What is a stock exchange?

Back

A stock exchange is a marketplace where buyers and sellers trade stocks.

Front

What is the role of investment banks in the investment sector?

Back

Investment banks provide financial services such as underwriting, mergers and acquisitions advisory, securities trading, and asset management.

Front

What is the difference between stocks and bonds?

Back

Stocks represent ownership in a company, while bonds represent debt owed by a company or government.

Front

What is diversification in investment?

Back

Spreading investments across different assets or asset classes to reduce risk.

Front

What are the risks associated with investing in the stock market?

Back

Market volatility, potential loss of principal, economic downturns, company-specific risks, and the possibility of fraud or manipulation.

Front

What is the concept of supply and demand in the stock market?

Back

The concept of supply and demand in the stock market refers to the relationship between the quantity of shares available for sale (supply) and the quantity of shares that investors want to buy (demand).

Front

What is the role of financial advisors in the investment sector?

Back

Financial advisors provide guidance and advice on managing finances and making investment decisions.

Front

What are some common investment strategies? Options: day trading, short selling, penny stocks, options trading; real estate investing, cryptocurrency investing, commodities trading, forex trading; savings account, fixed deposit, government bonds, high-interest savings account; buy and hold, dollar-cost averaging, value investing, growth investing, and index investing

Back

buy and hold, dollar-cost averaging, value investing, growth investing, and index investing