Stocks and Cryptocurrency Flashcards

1
Q

A type of investment fund that is traded on stock exchanges like individual stocks that aims to replicate the performance of a specific index, asset class, or sector. They provide investors exposure to a diversified portfolio of assets without having to buy each individually.

A

ETF (Exchange-Traded Fund)

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2
Q

A decentralized and distributed digital ledger that records all transactions across a network of computers. It ensures transparency, security, and immutability of data

A

Blockchain

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3
Q

The process of validating and adding transactions to the blockchain. Powerful computers are used to solve complex equations

A

Mining

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4
Q

A divergence in the blockchains protocol that can lead to 2 separate versions of the blockchain.

A

Fork

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5
Q

Give a few examples of coins that have forked.

A

Ethereum - Ethereum Classis
Bitcoin - Bitcoin Cash, Bitcoin SV, Bitcoin Gold
Litecoin - Litecoin Cash, Dash,

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6
Q

A computer or device that participates in the operation of a blockchain by validating transactions, maintaining a copy of the blockchains ledger, and broadcasting information.

A

Nodes

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7
Q

Currency that is issued by the government but isnt backed by anything

A

Fiat

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8
Q

A place where you record deposits and withdrawals. A checkbook would be an example

A

Ledger

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9
Q

What is the max number of Bitcoins that will ever be produced

A

21 million

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10
Q

A physical wallet to place your coins in that cannot be hacked

A

Cold wallet

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11
Q

A digital wallet that is used to perform transactions

A

Hot wallet

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12
Q

Can you perform transactions with a cold wallet

A

No

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13
Q

A blockchain that authenticates data by solving complex computer problems. Operates off brute computer strength

A

Proof of Work

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14
Q

A blockchain that works like a raffle. Everyone has a chance to win, but the more coins you have on the blockchain the better your chances.

A

Proof of stake

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15
Q

Name some examples of proof of stake coins

A

Cardano, Solana, Ethereum 2.0, tron

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16
Q

An event that occurs roughly every 4 years in the bitcoin network where the supply is cut in half. The block reward received by miners for successfully mining a new block is cut in half.

A

Halvening

17
Q

What does RSI stand for?

A

Relative Strength Index

18
Q

A payment made by a corporation to its shareholders, usually in the form of cash or shares, based on the company’s profit

A

Dividend

19
Q

An order to buy or sell a security immediately at the best current available price

A

Market Order

20
Q

An order to buy or sell a security at a specified price or better. The transaction will not be executed if the price is not met

A

Limit Order

21
Q

An individual firm that facilitates the buying and selling of stocks and other securities in behalf of the client

A

Broker

22
Q

The first sale of a company’s stock to the public, marking the transition from a privately held company to a publicly traded one

A

Initial Position Offering (IPO)

23
Q

A measure of market volatility often referred to as the “fear Gauge”. It tracks the expected volatility of the S&P 500 index

A

Volatility Index (VIX)T

24
Q

The predetermined price at which the owner of an options contract has the right (in the case of a call option) or the obligation (in the case of a put option) to buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

A

Strike Price

25
Q

The price paid by the buyer of an options contract to the seller (writer) for the rights conveyed by the option.

A

Premium

26
Q

An options strategy where an investor owns the underlying stock and sells call options against it to generate income

A

Covered Call

27
Q

An options strategy that involves writing a put option while simultaneously setting aside enough cash to cover the potential purchase of the underlying asset.

A

Cash-Secured Put

28
Q

A low risk, interest bearing investment option that has a predetermined term or maturity period. Higher rates than regular savings accounts but money is tied up.

A

Certificate of Deposit (CD)

29
Q

What is the maximum yearly investment into Roth IRA’s

A

$6,500

30
Q

What is the maximum yearly investment into 401Ks

A

$22,500

31
Q

When can you pull from your 401K and not be penalized

A
  1. Can pull prior but get penalized 10% and have to pay income tax.
32
Q

Name some of the most well known ETF’s

A

QQQ. SPY, IWM, GLD

33
Q

What does the ETF QQQ mainly consist of?

A

Technology sector: Apple, Microsoft, Amazon, Google, Facebook, ETC

34
Q

What is the Nasdaq-100?

A

A stock market index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq stock market

35
Q

What does $SPY track?

A

The performance of the S&P 500. The S&P 500 consists of 500 of the largest publicly traded companies in the US