Investing Definitions Flashcard

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Scenario in investment strategy characterized by rising prices and positive investor sentiment.

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A bull market

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Who has the correct understanding of a 'bear market'? Ethan: A market scenario where investment values are rising and investor sentiment is positive. Maya: A market scenario where investment values are falling and investor sentiment is negative. Evelyn: A slang term used in the context of meme stocks and speculative trading.

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Maya: A market scenario where investment values are falling and investor sentiment is negative.

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In the context of beginner investment strategies, what does 'ape in, ape out' refer to?

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Investors who follow crowd behavior without thorough analysis

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What investment strategy is John trying to depict by pretending to be a cat, falling down, and then bouncing back up?

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A short-lived, temporary recovery in the price of a declining asset or market

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Options in the context of a real-world stock market scenario

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Financial derivatives that give the holder the right to buy an underlying asset, like a stock, at a predetermined price

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What does a 'call option' allow a beginner investor to do in a real-life scenario?

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Buy a stock at a specified price before the contract expires

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What do shares of real-world companies like Amazon and Tesla represent?

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Ownership in a company and entitlement to a portion of the company's profits

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Market Capitalization

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The total value of a publicly traded company's outstanding shares

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What does 'short squeeze' mean in the context of investing?

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A situation where a heavily shorted stock or commodity moves sharply higher, causing a rush to buy in order to cover their short positions and add to the upward pressure on the stock's price.

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Blue-chip stock in relation to 'Tech Giants Inc.'

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A stock of a large, well-established and financially sound company like 'Tech Giants Inc.'