Vocab

Question 1

Range

Answer 1

The high and low price of a stock for a particular trading period (day, month, week, year)

Question 2

Open

Answer 2

The start of trading on a securities exchange. Signals the start of the official day for the exchange

Question 3

Market Cap

Answer 3

The total cost of all shares that a particular company has. A higher market cap means either more shares or a higher price

Question 4

Earnings per share

Answer 4

An indicator of the companies profitability. Portion of the companies profit to each outstanding share of the companies stock

Question 5

Beta

Answer 5

A measure of volatility, or systematic risk of a security or a portfolio in comparision to the market as a whole (if beta is below 1, it is considered a sage investment, above 1 is risky)

Question 6

Instituationally owned

Answer 6

Percentage of shares outstanding held by institutional investors, such as pension plans or hedge funds. (Apple offers stock options to their employees, and are therefore partially institutionally owned)

Question 7

Black swans

Answer 7

Can be positive and negative. Is an event that happens against all expectations and has an extreme impact (9/11)

Question 8

Buy and hold investor

Answer 8

Long term, buys stocks and commits to them for a longer period of time

Question 9

Position trader

Answer 9

To earn monthly and quaterly income from trends

Question 10

Swing trader

Answer 10

Someone who buys and sells shares weekly or monthly off of clear cut trends

Question 11

Scalping/day trader

Answer 11

Investor tries to make profits by rapid trade based on prices changes daily. doesn’t hold any positions overnight

Question 12

Steps to buying land

Answer 12

Needs assessment
Market assessment
Acquiring a mortgage/finances
Selecting an agent
Inspection and appraisal
Making an offer
close it out

Question 13

Factors that contribute to land value

Answer 13

physical attributes
legal or government forces
social factors
economic factors

Question 14

Land valuation

Answer 14

cost analysis
comparable sales
income analysis
cost of development

Question 15

Pricing strategies

Answer 15

prestige pricing
odd-even
bundle
yield management

Question 16

Prestige pricing

Answer 16

setting a high price so that quality or status conscious consumers will be attracted to the product

Question 17

Odd-even pricing

Answer 17

Involves selling the product for a few dollars or cents short of an even price. In theory, demand increases because it visually looks like less money

Question 18

Bundle pricing

Answer 18

The marketing or two or more products together. Based on the idea that consumers value the package more than the individual products (airfare + hotel)

Question 19

Yield management

Answer 19

The charging of different prices to maximize revenue for a set capacity at any given time (airline seats)

Question 20

Groupthink

Answer 20

A psychological phenomenon that occurs within a group of people in which the desire for harmony results in irrational decision making

Question 21

Cause marketing

Answer 21

Cooperative efforts of a for-profit business and a non-profit organization for mutual benefit

Question 22

Cooperative marketing

Answer 22

An agreement between two or more companies to combine marketing efforts (starbucks and chapters) complementary companies can create effective and mutually benefitting advertisements

Question 23

Viral marketing

Answer 23

Internet advertising that spreads exponentially. Usually with the assistance of social media sites

Question 24

Real time advertising

Answer 24

Brands engaging their audience in response to a relevant event

Question 25

Guerrilla marketing

Answer 25

Low-cost, unconventional marketing tactics yielding maximum response

Question 26

Stunt marketing

Answer 26

Publicity stunts organized to capture immediate and large responses

Question 27

Styles of leadership

Answer 27

Autocratic
laissez-faire
democratic

Question 28

Autocratic leadership

Answer 28

Clear expections on the goal and how it will be achieved

Question 29

Laissez-faire leadership

Answer 29

More relaxed, provides end goal but not how to reach iit

Question 30

Democratic leadership

Answer 30

Said to be the best. Provides end goal and participates in group work and getting there

Question 31

Game theory

Answer 31

The study of how people, companies or nations determine strategies in different situations in the face of competing strategies