E&EL MP2 Q2

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

What's an IPO?

(Initial Public Offering) When a company first sells shares of stock to the public

The company Apple has how many shares outstanding?

5,575,000,000

In our example, what would be the Quantity Demanded at a market price of $20?

7

What does a stock represent?

A percentage of ownership of a company including assets and profits

What is a mutual fund?

A pool of securities you can buy as an investment

What is an index ETF?

An ETF that tracks a stock index, like the S&P 500

Who would be the most likely to buy an inverse ETF?

An investor who normally is not able to short-sell in their portfolio

Who would be the least likely to buy a leveraged ETF?

An investor who thinks the underlying index will slowly go up or down

What makes up a "Ticker Symbol" in the United States?

Between 1 and 5 letters only

What investment is similar to the first paper money?

Certificates of Deposit

Which of these is different between ETFs and mutual funds?

ETFs usually have lower fees than mutual funds

What is an ETF?

Exchange Traded Fund

What is a GDP?

Gross Domestic Product

Why did investors start using ticker symbols?

It was faster to move news along telegraphs with short names

How would you buy an ETF?

Like a stock, with the price constantly updating

Why does the quantity of supplied stock go up when prices go up?

More current owners are willing to sell their shares at a high price

What does it mean when payroll employment and unemployment both increase?

More people entered the labor force than jobs were created

What is a disadvantage of Mutual Funds?

Mutual Funds can have maintenance fees regardless of fund performances

What is one difference between Mutual Funds and ETFs?

Mutual Funds cannot be day-traded

Where were stocks first created?

Rome

What is NOT a characteristic of Open-Ended Mutual Funds?

Shares trade throughout the day

What is preferred stock?

Stock that gets paid dividends first

What is "Consumer Surplus"?

The "profit" a buyer gets- the difference between what they had to pay and the most they would be willing to pay in a trade

"Market Equilibrium" is...

The price range where the quantity supplied equals the quantity demanded

What does a GDP do?

The total value of all finished goods and services produced by a country

When the economy inflates....

The unemployment rate goes down

When the economy contracts....

The unemployment rate goes up

Why would a stock have ".A" at the end of its ticker symbol?

There are multiple classes of stock for this company

What do economies do?

They inflate and contract

How do researchers calculate the Consumer Price Index?

They watch the prices of a large group of consumer goods around the country

Why do we want to maximize the Total Surplus?

This generates the biggest benefit to share between buyers and sellers

Why do Reserve Requirements exist?

To make sure that banks have enough cash to serve customers who want to withdraw

Which is one major advantage of Mutual Funds?

You have a fund manager so you do not need to constantly monitor your investments

What is the currency in the United States backed by?

debt


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