I

Question 1

Index

Answer 1

A benchmark that is used as a reference marker for traders and portfolio managers. A 10% return may Sounds nice, but if the market index returns 12%, then you didn’t do very well considering you could have just invested in an index fund and save time by not trading frequently.

Question 2

Initial public offering (IPO)

Answer 2

Is the first sale or offering by a stock by a company to the public.
•The securities exchange commission (sec) has strict rules that companies must follow before issuing an IPO.

Question 3

Intraday

Answer 3

Another way of saying within the day

Question 4

IPO (Initial Public Offering)

Answer 4

Private companies first sale of stock to the public, most of the capital raised goes to the company.

Question 5

Investment Bank

Answer 5

Firms that help companies issue stock, help with mergers and acquisitions (M&A) and private equity.

Question 6

Institutional investor

Answer 6

An organization that invested in large amounts.

Question 7

Independent/ Proprietary Traders

Answer 7

Trade with personal capital/leverage, somewhat to very sophisticated, sometimes trade penny stocks.

Question 8

Institutional Traders

Answer 8

Work for large firms, never trade Penny Stocks.