Test 2 Flashcards
(21 cards)
What was the name of the Man that visited the class?
Jon Cheek of BMO
What are the three types of orders (Module 5)
Market Order, Limit Order, Stop Order
What is Market Order? (Module 5)
An immediate order for buying and selling, takes place at the immediate price it is at.
What is Limit Order? (Module 5)
An order for buying and selling order that is within a specified limit price, must be executed at the limit price or better
What is Stop Order? (Module 5)
An order to buy and sell when a present stop price is reached, when the price is reached the order becomes a market order.
What is a IPO? (Module 5)
Initial Public Offering is the FIRST sale of a stock that is listed by a company to the public. When a private companies stock is becoming an IPO it is referred to as “Going public”
What is S&P 500 (Module 5)
Also known as Standard and Poor’s 500, is the the market capitalization weighted index of the 500 largest U.S publicly traded companies
What is DJIA and what does it do? (Module 5)
The Dow Jones Industrial Average is a overall indication on how the stock market is performing. The average is based upon 30 significant stocks traded on the NYSE
What is NASDAQ and what does it do? (Module 5)
The National Association of Securities Dealers Automated Quotations or NASDAQ is an electronic exchange that allows investors to buy and sell stock on a “speedier” system. When referred to as the “NASDAQ is up today” means that the average statistical indexes such as DJIA is up.
What is the PE Ratio and what does it tell about stocks? (Module 6)
Stock Price / EPS = PE Ratio, Used to tell how cheap or expensive a stock is, the lower the PE the cheaper the stock.
What are stocks with high PE called? Low PE? (Module 6)
Growth Stocks, higher PE
Value Stocks, lower PE
What is the calculation for Price Target? (Module 6)
Price Target = Historical PE x Current EPS x (1 + projected EPS growth rate)
What is EMH? (Module 6)
Efficient Market Hypothesis is the theory that stocks are already accurately priced and reflect all information given, making it impossible to make a profit from strategies.
What are downsides to EMH’s? (Module 6)
investors view information differently giving different stock valuations, stocks take time to respond to information, stock prices can be altered due to human error
What is Status Quo Bias?
Emotional Bias, preference for current state of affairs. When the current state or “status quo” is changed, it is seen as a loss
What is Sunk Cost Fallacy?
The continuation of pursuing a option even if the option may not be the best, as they believe that they spent time and money into the resource
What is Hot Hand Fallacy?
he belief that you could win or lose numerous times in a row and have the streak continue as if it has something to do with a concept rather than probability
What is Wishful thinking Bias
The concept of the desire of something to be true replaces the evidence and truthfulness of the claim.
What is Gambler’s Fallacy?
The concept that if a outcome happens more frequently than a normal given period, then it will happen less frequently in the future.
What are five physiological “money saving concepts”
Status Quo Bias, Sunk Cost fallacy, Hot-Hand Fallacy, Wishful Thinking Bias, Gambler’s Fallacy
What are five articles on external links
Sportsnet Article about Fred vanVeleet, Investopia, WikInvest/ SigFig, Seeking Alpha, Canadian Youth Business Foundation
