Investment Review

Front

What is the difference between investing and gambling?

Back

Investing involves making informed decisions to grow wealth over time, while gambling relies on chance and luck.

Front

What does 'Market Cap' refer to?

Back

Market Cap, or market capitalization, is the total value of a company's outstanding shares of stock.

Front

If the price of stock is $45.06 and you want to invest $200, how many shares can you buy?

Back

4.4 Shares

Front

What is a Bull market?

Back

A Bull market is characterized by rising investments, typically occurring during economic recovery or boom.

Front

How do you calculate net worth?

Back

Net worth is calculated by subtracting total liabilities from total assets.

Front

What is a Bear market?

Back

A Bear market is characterized by declining investments, often during economic downturns.

Front

What is the formula for calculating Market Cap?

Back

Market Cap = Share Price x Total Number of Outstanding Shares.

Front

What is the significance of Earnings Per Share (EPS)?

Back

EPS indicates a company's profitability on a per-share basis, helping investors assess financial performance.

Front

What does it mean to diversify an investment portfolio?

Back

Diversifying means spreading investments across various assets to reduce risk.

Front

What is the role of a stockbroker?

Back

A stockbroker facilitates the buying and selling of stocks and provides investment advice.