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Stock Market Yes or No

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Familiarize yourself with Veteran-level financial literacy terminology! Can you complete the entire set?

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Stock Market Yes or No
 

Stock Market Yes or NoOnline version

Familiarize yourself with Veteran-level financial literacy terminology! Can you complete the entire set?

by WM
1

A Traditional IRA is a retirement account that allows you to save pre-tax money for retirement, allowing you to lower your taxable income

2

A bull market is a period when investment prices are rising

3

The NASDAQ is the largest and oldest stock market where people buy and sell shares of companies

4

A dividend is the profit you make when selling shares of stock

5

A market correction is when the stock market drops by 10% or more from a recent high

6

A Roth IRA is a retirement account that allows you to save post-tax money fro retirement, allowing your investments to grow tax-free

7

The profit you make when selling something for more than you paid is called principal gains

8

The S&P 500 is a list of 2,000 small U.S. companies used to track their stock performance

9

Large cap companies have a market cap over $10 billion

10

An ETF is a type of investment fund that pools money from many investors to buy a diversified portfolio of assets, but can also trade on an exchange like a stock

11

Derivatives are companies with a small market cap

12

Blue Chip stocks are shares in big, stable, and reliable companies

13

Mid cap companies have a market cap between $2 billion and $10 billion

14

Leverage is borrowing money to invest more money in hopes for higher returns

15

Market cap is a way to compare the price of a stock to how much money the company is making

16

Shareholders are people who own shares of a company

17

The NYSE is the largest and oldest stock market where people buy and sell shares of companies

18

Options are contracts that give you the right to buy or sell an asset at a set price

19

Arbitrage is a strategy to reduce the risk of losing money

20

Bonds are loans you give to a company or government to get paid back with interest

21

A bear market is a period when investment prices are rising

22

A mutual fund is a professionally managed investment fund that pools money from many investors to buy a mix of stocks, bonds, and other assets

23

The expense ratio is the process of determing how much a company or asset is worth

24

Short selling is betting that the price of an investment will go up

25

An index fund is a type of mutual fund or ETF that passively tracks a market index, such as the S&P 500, by holding the same securities in the same proportions

26

Alpha is the measure of how much an investment outperforms the market

27

Equity is the value you own in something after subtracting what you owe

28

The Russell 2000 is a list of 500 of the largest U.S. companies used to measure how the stock market is doing

29

A valuation is the annual fee charged by an investment fund to manage your money

30

A custodial account is an account set up by an adult to manage money or investments for a child until they reach a certain age

31

Beta is the measure of an investment's risk compared to the market

32

The price-to-earnings ratio is the total value of a company's shares in the stock market

33

Margin is the income you earn from an investment shown as a percentage

34

A hedge is a strategy to reduce the risk of losing money

35

Yield is borrowing money from a broker to buy investments

36

Stocks are loans you give to a company or government to get paid back with interest

37

Dollar-cost averaging is when you invest the same amount regularly to reduce risk

38

Small cap companies have a market cap between $2 billion and $10 billion

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