Stocks Flashcard part 2

Front

What is the technical term for the price a buyer offers a seller to purchase shares from them?

Back

Bid

Front

When should you start saving for retirement?

Back

When you get your first job

Front

Approximately how much money was one share of Apple selling for last night?

Back

113.05

Front

What does a stock represent?

Back

A percentage of ownership of a company including assets and profits

Front

What is the term for the chance of losing money or assets?

Back

Risk

Front

What is the term for the price at which a seller is willing to sell their shares?

Back

Ask

Front

What is the difference between a bid and an ask price?

Back

The bid price is what buyers are willing to pay, while the ask price is what sellers are willing to accept.

Front

What is a stock market index?

Back

A statistical measure that reflects the composite value of a selected group of stocks.

Front

What is the purpose of diversification in investing?

Back

To reduce risk by spreading investments across various financial instruments, industries, and other categories.

Front

What does it mean to buy on margin?

Back

To borrow money from a broker to purchase stock, using the stock itself as collateral.