Investment Lingo 3

Question 1

Dow Jones Industrial Average is a

Answer 1

Stock market index

Question 2

Amount of companies in DOW

Answer 2

30

Question 3

ESG stands for

Answer 3

Environmental, Social, and Governance

Question 4

ESG make up criteria used to determine

Answer 4

How socially responsible an investment is

Question 5

ESG factors judge companies based on their (3)

Answer 5

Environmental efforts

Social policies

Internal governance

Question 6

Investors use ESG to

Answer 6

Find companies that fit their values

Question 7

Another term for stock

Answer 7

Equity

Question 8

Equity represents a portion of the company that is

Answer 8

Owned and funded by its shareholders

Question 9

When you buy shares in a particular company, you get

Answer 9

Equity (ownership in that company)

Question 10

ETF stands for

Answer 10

Exchange traded fund

Question 11

Investment vehicle

Answer 11

Any method by which one can invest

Question 12

An Expense ratio is a _ charged on _

Answer 12

Fee

Mutual funds, ETFs, etc

Question 13

Index def

Answer 13

Measure or statistical indicator of group of assets

Question 14

Example of an index

Answer 14

S&P 500

Question 15

Inflation is an increase in

Answer 15

Price of goods/services

Question 16

Large cap stocks are stocks issued by

Answer 16

Companies with a market capitalization of at least $10 billion

Question 17

Market capitalization is

Answer 17

Value of all stocks a company has issued

Question 18

Large cap stocks are _ companies in the stock market

Answer 18

Large

Question 19

Liquidity

Answer 19

The amount of ease it is to convert investment into cash

Question 20

The most liquid is _ because it instantly belongs to you

Answer 20

Money in your bank account

Question 21

Things like real estate are less liquid because

Answer 21

It is difficult and time consuming to sell and recover your cash