Fundi Flashcards

1
Q

What is a good EBITDA margin

A

Over 10%

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2
Q

What is a good P/E ratio

A

Lower than 15

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3
Q

What is considered a low float

A

10-20 million

Sometimes less than 1 million

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4
Q

Outstanding shares meaning

A

Amount currently authorized issued and purchased by people

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5
Q

Float

A

Amount available to get right now

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6
Q

What is Open Interest

A

Amount of contracts outstanding

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7
Q

What is a dark pool

A

Forum for institutions to trade without exposure until it’s been executed and reported. So people don’t get tip that they will buy beforehand and change price

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8
Q

A reverse split is the same as

A

Share consolidation

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9
Q

What is considered low cap

A

Anything below 1B

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10
Q

What is naked shorting selling

A

When someone sells shares to other people without actually owning or borrowing it.

Chore: Here’s your share!

Person: Thanks

       Wait

Person: dang, here’s your share that I had to buy back at a higher price

Chore: Oh well, Thanks for paying me back

This causes harm to the company involved as it depresses the price of the stock

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11
Q

What is a good Debt/Equity ratio

A

1 to 1.5

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12
Q

What happens if doesn’t breakout for 2 or more days

A

squeeze finished

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13
Q

What does it mean if ticker has Q at the end

A

Bankrupt

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14
Q

derivative =

A

value is derived from another security

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15
Q

Equity risk premium

A

Expected return - Risk free return

What they expect to receive for taking on the risk

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16
Q

What affects D

A

PFICT
Price
Future price expectation
Income
Complements and Subs
Taste

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17
Q

Coin and Token difference

A

Coin is its own blockchain
Token utilizes a blockchain

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18
Q

What is a covered call

A

Sell a call but buy the stock instantly

Keep the premium

19
Q

Option

A

contract that gives the holder the right but not the obligation to buy or sell an asset (literally any) at the strike price (predetermined price)

20
Q

Share buyback reasons

A
  1. Shows they have faith in the company
  2. If they have extra cash then they can use it to buy shares as a way to distribute excess capital instead of dividends
  3. Offset share dilution from giving shares to employees
  4. Increase EPS metric
21
Q

New shares issued

A

Outstanding Shares (Amount currently held) increased so EPS decreases as Profits shared over more people

Shows that they are in need of extra capital - sign of bad news

However if they have a good plan on how they are going to use the extra capital then good

22
Q

What is Credit Risk

A

Possibility that the borrower will default on a loan

23
Q

Debt pros + cons

A
  1. They don’t get ownership control
  2. Tax deductible
  3. Has to be repaid in full + Interest
  4. If can’t pay, Credit rating goes down + lose collateral assets
  5. Risk of default and bankruptcy
24
Q

Equity Pros and Cons

A
  1. Doesn’t have to be repaid
  2. Investors bring expertise to help it grow
  3. Shared risk, everyone wants it to do well
  4. Shareholders get control of decisions
  5. Dilution of existing shareholders (like owners)
25
Q

What does a yield curve show

A

Relationship between Bond yield and maturity

26
Q

What does an inverted yield curve signal

A

Short term bonds yield higher coupon payments than long term ones.

Inverted treasury yield curve signals a recession in coming years

27
Q

Can you fake salary in job interview

A

Yes

28
Q

Percentage Change

A

F-O / O

29
Q

exit liquidity

A

to exit position you need people to buy up

30
Q

When do you use continuous compound interest formula

A

If you put back in infinitely

31
Q

normal compound interest

A

x 1.05^7

32
Q

creditor

A

bank is creditor when you get mortgage loan

33
Q

FEELS

A

H

34
Q

How to do taxes

A

Use website

35
Q

Inverted yield curve

A

people think recession coming so they rush to buy long term bonds. rather have a long term bond than a short term stock that is volatile. short term bond will increase yield as no one wants them as interest rates will rise so they can get more money from bank

36
Q

when stop losses hit

A

liquidity unlocked

37
Q

Market structure break

A

When previous swing high or low is run past

38
Q

swing high

A

followed by 2 bearish candles

39
Q

rolling recession

A

some areas affected some arent

40
Q

how to get funding

A

big up game and say youll do so much then theyll give money. team is more important and just say jargon

41
Q

what is LP

A

Limited Provider - Who supplies the capital for vc

42
Q

Quantitative Easing

A

Central Bank buys bonds from banks to increase liquidity and willingness to lend. also decreases yield so treasury bonds less attractive

They use extra money to buy corporate bonds. This decreases yield (IR) for companies so they can raise finance at a lower cost so they can I

Or they buy stocks with positive wealth effect

43
Q

Why named Alameda research

A

the term ‘research’ was included in the name to avoid scrutiny, with Bankman-Fried saying, “If you named your company like We Do Cryptocurrency Bitcoin Arbitrage Multinational Stuff, no one’s going to give you a bank account. […] But everyone wants a Research Institute