WorksheetsStock Market Game - Diversification (SIFMA)
Total questions: 8
Worksheet time: 4mins
What is it called when you spread your money
across different types of investments, sectors, industries and company sizes?
Throwing spaghetti at the wall to see what sticks
Diversification
Index
Market Cap
Why should you diversify your investments?
If one stock goes down, hopefully another stock might go up
Because the investment gurus said so
Diversity is always a good choice
To lower your risk
A broad group of similar businesses, often in the same industry is called a?
(Healthcare, technology and retail are examples)
Market Cap
Industry
Sector
Jeff Bezos
Within a sector, what is a smaller group of companies with similar products or services called?
Industry
Sector
Market Cap
Index
What is used to track changes in a specific sector or in the economy?
(S&P500, Dow and Nasdaq are examples)
Market Cap
Industry
Sector
Index
What measures volatility (rate of change, up or down in stock price)?
(Example: 1 means stock moves at the same rate as the market)
Index
Trampoline
Stock Market
Beta
What is the total dollar value of a company’s outstanding
shares of stock called.
(For example: Facebook (META)'s is $527 Billion)
A whole lot
Index
Market Capitalization (market cap)
Beta
These investments pool money from many investors into a
diversified portfolio of stocks, bonds, and other securities.
Basket Investing
Mutual Funds
ETFs
(Exchange Traded Funds)
& Index Funds
Betas
Indexes
