Investment Lingo 4

Question 1

Long-term investment strategy

Answer 1

Focused on sustained growth over many years

Question 2

A long-term investment strategy is consistent with

Answer 2

A buy-and hold strategy

Question 3

Buy-and-hold strategy

Answer 3

Allow money in certain investments to grow for many years

Question 4

How to calculate market cap

Answer 4

Multiply number of shares outstanding by price of each share

Question 5

Market capitalization can be used to compare

Answer 5

Value of two companies

Question 6

Market price def

Answer 6

Price asset can be bought and sold on the open market

Question 7

Price of given asset based on

Answer 7

Supply and demand

Question 8

Mid-Cap Stock

Answer 8

Stocks issued by company with market cap of $2-10 billion

Question 9

Trade during the trading day

Answer 9

ETFs

Question 10

Trade after the trading day

Answer 10

Mutual funds

Question 11

A stock Exchange is a centralized

Answer 11

Physical location

Question 12

A stock Exchange acts as a market where

Answer 12

Stock buyers connect with stock sellers

Question 13

NASDAQ is

Answer 13

A stock Exchange

Question 14

NASDAQ tends to attract

Answer 14

Technology companies

Question 15

NAV stands for

Answer 15

Net asset value

Question 16

Net asset value refers to

Answer 16

Net value of an investment company (usually a mutual fund)

Question 17

Calculate net asset value

Answer 17

Subtract funds liabilities from its assets

Question 18

Calculate net asset value by shares

Answer 18

Funds total NAV divided by number of shares outstanding

Question 19

Equity based exchange definition

Answer 19

Where investors can buy and sell stocks

Question 20

Looking at portfolio as a whole can help you

Answer 20

Calculate your net worth

Question 21

Looking at your portfolio as a whole can determine whether

Answer 21

You’re on track to meet your financial goals

Question 22

Price to earnings ratio (P/E ratio) is a way of

Answer 22

Calculating company’s value

Question 23

P/E ratio calculation

Answer 23

Divide company’s stock prices by its earnings per share

Question 24

A company’s P/E ratio can help investors determine whether

Answer 24

They want to buy its stock