Stock Market Flashcard

Front

What is a Simple Moving Average (SMA)?

Back

A Simple Moving Average (SMA) is a calculation that takes the average of a selected range of prices, usually closing prices, over a specified number of periods.

Front

What does a crossover in stock charts indicate?

Back

A crossover occurs when a shorter-term moving average crosses above or below a longer-term moving average, indicating potential changes in stock trends.

Front

What is a ticker symbol?

Back

A ticker symbol is a unique series of letters assigned to a security or stock for trading purposes, used to identify the stock on exchanges.

Front

What happens to the number of shares during a stock split?

Back

In a stock split, the number of shares outstanding increases while the price per share decreases proportionally, keeping the overall market capitalization the same.

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CCSS.7.RP.A.3

Front

What is profit?

Back

Profit is the positive difference between revenue and expenses, indicating the financial gain of a business.

Front

What is the purpose of using SMA in trading?

Back

SMA is used to smooth out price data to identify trends over a specific period, helping traders make informed decisions.

Front

What does it mean when a stock is labeled as a 'buy'?

Back

A 'buy' label indicates that analysts or traders believe the stock's price will increase, making it a good investment opportunity.

Front

How do you calculate the total shares outstanding after a stock split?

Back

To calculate total shares outstanding after a stock split, multiply the pre-split shares by the split ratio (e.g., for a 3-for-1 split, multiply by 3).

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CCSS.6.RP.A.3C

Front

What is the significance of the high and low prices in stock trading?

Back

The high and low prices represent the highest and lowest prices at which a stock has traded during a specific period, indicating volatility and price range.

Front

What is the role of a stock exchange?

Back

A stock exchange is a marketplace where stocks are bought and sold, providing a platform for companies to raise capital and for investors to trade securities.