Investment Lingo 4 Flashcards
(24 cards)
Long-term investment strategy
Focused on sustained growth over many years
A long-term investment strategy is consistent with
A buy-and hold strategy
Buy-and-hold strategy
Allow money in certain investments to grow for many years
How to calculate market cap
Multiply number of shares outstanding by price of each share
Market capitalization can be used to compare
Value of two companies
Market price def
Price asset can be bought and sold on the open market
Price of given asset based on
Supply and demand
Mid-Cap Stock
Stocks issued by company with market cap of $2-10 billion
Trade during the trading day
ETFs
Trade after the trading day
Mutual funds
A stock Exchange is a centralized
Physical location
A stock Exchange acts as a market where
Stock buyers connect with stock sellers
NASDAQ is
A stock Exchange
NASDAQ tends to attract
Technology companies
NAV stands for
Net asset value
Net asset value refers to
Net value of an investment company (usually a mutual fund)
Calculate net asset value
Subtract funds liabilities from its assets
Calculate net asset value by shares
Funds total NAV divided by number of shares outstanding
Equity based exchange definition
Where investors can buy and sell stocks
Looking at portfolio as a whole can help you
Calculate your net worth
Looking at your portfolio as a whole can determine whether
You’re on track to meet your financial goals
Price to earnings ratio (P/E ratio) is a way of
Calculating company’s value
P/E ratio calculation
Divide company’s stock prices by its earnings per share
A company’s P/E ratio can help investors determine whether
They want to buy its stock
