Deck 6 Flashcards
foreign exchange
the conversion of one currency into another currency
international trade
the exchange of goods and services between countries
import
goods and services purchased from another country
export
goods and services sold to another country
credit card
Pros
- convenience
- credit building
- rewards and other perks
- theft protection
- online shopping
stock symbol
A stock symbol is like a company’s nickname on the stock market. It helps people easily talk about and buy stocks of a company.
credit card
Cons
- overspending and debt
- fraud
- fees
- paying interest
Why do we need to save money?
- big purchases (like phone, education, car, house)
- emergencies
- unexpected expenses
- investment
What to do with money?
- spending
- saving
- donating
CEO
Chief Executive Officer is the top person in charge of the whole company.
CEO makes important decisions, like what products the company will make, how many people they will hire, and how to spend their money.
stock price
A stock price is like the price tag on a company in the stock market. It tells you how much money one tiny piece (or share) of that company costs.
industry
An industry groups together companies that make similar things or offer similar services.
compound interest
Compound interest is when you earn interest on both the money you’ve saved and the interest you earn.
market cap
The market cap is the value of a company, based on the total value of all its shares together.
A higher market cap means is a company is larger in terms of total value.
Market cap = number of shares x Price per share
PEG ratio
The price/earnings to growth ratio considers both how much the company earns now and how much it’s expected to grow in the future.
A lower PEG ratio means a company is undervalued or cheaper to buy.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) tries to show a basic picture of how much money a company is making from its core operations, like selling products or services.
P/E ratio
Price-to-Earnings ratio tells you how much investors are willing to pay for every dollar of profit the company makes.
A lower P/E ratio means a company is better buy.
P/E ratio = Price of one share / Company’s earnings per share
bank
A bank is a business that accepts and holds money for people.
Banks pay interest in return for holding money.
annual dividend yield
A company’s annual dividend yield is the percentage of a company’s stock price that it pays out to its shareholders every year in the form of dividends.
How does bank make money ？
Banks pay interest for holding money, and make money by loaning money out to other people and business at a higher rate of interest.
