Terminology

Question 1

what is a LIABILITy?

Answer 1

Some thing that takes money out of your pocket.

Question 2

what is an ASSET?

Answer 2

Something that puts money into your pocket.

Question 3

What is an Income Statement?

Answer 3

The income statement measures income and expenses: money in and money out.


Question 4

What is a Balance Sheet?

Answer 4

It’s a tool that will balance assets against liabilities. It’s the lower part of an income statement diagram.

Question 5

What is Cash Flow?

Answer 5

Cash coming in as INCOME and cash going out as EXPENSES.

Question 6

What is a Mortgage?

Answer 6

Agreement until death.

Question 7

What does ‘Finance’ mean?

Answer 7

Penalty.

Question 8

What does ‘Real Estate’ mean?

Answer 8

The Royal Estate.

Question 9

What is a ‘Derivative’?

Answer 9

some thing that comes from something else.

Question 10

What is ‘Money’?

Answer 10

Money is debt.

Question 11

What is ‘The Name of the Game’?

Answer 11

Who is Indebted to Whom?!

Question 12

What is EPS?

Answer 12

Earnings Per Share

Earnings per share (EPS) is calculated as a company’s profit divided by the outstanding shares of its common stock.

EPS indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value.

Earnings per share is one of the most important metrics employed when determining a firm’s profitability on an absolute basis.

Question 13

What is P/E?

Answer 13

PRICE to EARNINGS ratio

The price-to-earnings (P/E) ratio relates a company’s share price to its earnings per share.

The price-to-earnings ratio is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

P/E ratios are used by investors and analysts to determine the relative value of a company’s shares in an apples-to-apples comparison.

Question 14

What does EQUITY mean?

Answer 14

Fairness and Impartiality.

Question 15

What are INDISTRIALS?

Answer 15

General term of companies manufacturing, producing, or distributing goods and services.

Question 16

What is the INDUSTRIALS sector?

Answer 16

A general termof companies manufacturing, producing, or distributing goods and services.

Question 17

What is the CONSUMER DISCRETIONARY sector?

Answer 17

Consumer discretionary refers to those household goods that are consumed more so as to wants than needs.

Demand for these goods tends to rise when the economy is strong, while people cut back on discretionary spending when the economy falters.

Cars, household appliances, specialty items, luxury, and leisure are all considered part of the consumer discretionary sector.

Question 18

What is the CONSUMER STAPLES sector?

Answer 18

The term consumer staples refers to a set of essential products used by consumers. This category includes things like foods and beverages, household goods, and hygiene products as well as alcohol and tobacco.

Consumer staple stocks represent companies that are noncyclical because they produce or sell goods or services that are always in demand.

Characterized by steady if unspectacular growth, the consumer staple sector is a haven in for investors in recessionary times.

Consumer staples stocks can be a good option for investors seeking consistent growth, solid dividends, and low volatility

Question 19

What is COMPOUND INTEREST?

Answer 19

The most powerful force in the universe.

-Albert Einstein

Question 20

What are COMMODITIES?

Answer 20

A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Commodities are raw materials used to create the products consumers buy, from food to furniture to gasoline or petrol.

Question 21

What is APY?

Answer 21

APY, which stands for Annual Percentage Yield, is the rate you can earn on an account over a year and it includes compound interest.

Question 22

What arw TREASURIES?

Answer 22

Treasuries are debt instruments in which investors are lending the U.S. government the purchase amount of the bond.

In return, investors are paid interest or a rate of return. When the bond matures (or maturity date), investors are paid the face value of the bond.

All Treasuries have zero default risk, meaning they are guaranteed by the full faith and credit of the United States government.

Question 23

What arw TREASURY BONDS?

Answer 23

Treasury bonds mature in 20 or 30 years and offer the highest interest payments bi-annually.

Question 24

What are TREASURY NOTES?

Answer 24

Treasury notes mature anywhere between two and 10 years, with bi-annual interest payments.

Question 25

What are TREASURY BILLS?

Answer 25

Treasury bills have the shortest maturity terms—from four weeks to one year.

Question 26

What is the ENERGY sector?

Answer 26

Oil, Gas & Consumable Fuels.

The energy sector has been an important driver of industrial growth over the past century, providing fuel to power the rest of the economy.

Companies in the energy industry are classified based on how the energy is sourced such as non-renewables or fossil fuels and renewables such as solar.

Question 27

What is the MATERIALS sector?

Answer 27

Containers & Packaging, chemicals. consctruction materials, metals & mining, paper and forest products.

The basic materials sector is made up of companies involved in the discovery, development, and processing of raw materials, from gold and oil to timber.

The raw materials they finish are sold for use in nearly all other industry sectors.

The sector is particularly sensitive to the ups and downs of the economy.

Question 28

What is the INDUSTRIALS sector?

Answer 28

Aerospace & Defense, Building Products, Construction & Engineering, Electrical Equipment, Industrial Conglomerates, Machinery,
Trading Companies & Distributors, Commercial Services & Supplies, and Professional Services.

Question 29

What is a Black Swan Event?

Answer 29

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences.

Reliance on standard forecasting tools can both fail to predict and potentially increase vulnerability to black swans by propagating risk and offering false security.

Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments, but even the use of robust modeling cannot prevent a black swan event.

Question 30

What is CAPEX?

Answer 30

Capital Expenditure

Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.

Question 31

What is GAAP?

Answer 31

Generally Excepted Accounting Principles.

Question 32

What is Market Cap?

Answer 32

Market capitalization, or “market cap”, is the aggregate market value of a company represented in a dollar amount

Market capitalization is the total dollar value of all outstanding shares of a company at the current market price.

Companies may be categorized as large-, mid-, or small-cap depending on their market capitalization.

Blue-chip companies are often large- or mega-cap stocks, while the very smallest are referred to as micro-caps.