basics
3 explainers · 12 quiz questions tagged “basics”.
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Stock Market Basics: What a Share Really Is
Start here. What a share of stock represents, the first terms every investor meets (market cap, dividend, EPS, P/E, volatility), and the crucial difference between a stock's price and its value.
How Stock Exchanges Work
Where shares actually change hands. What an exchange is, how a buyer and a seller get matched, and what the bid, the ask and the spread really mean.
Bull and Bear Markets: Reading Market Cycles
Markets move in long swings of optimism and fear. What bull and bear markets are, why corrections are normal, and why time in the market usually beats timing the market.
Quiz questions
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Difficulty 4/100 Basics
What does owning one share of a company give you?
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Difficulty 6/100 Basics
What is a stock's "ticker"?
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Difficulty 8/100 Basics
How is a company's market capitalisation calculated?
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Difficulty 10/100 Basics
What is a stock market index such as the S&P 500?
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Difficulty 16/100 Basics
What is compounding?
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Difficulty 22/100 Basics
What is the key difference between buying a company's stock and buying its bond?
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Difficulty 24/100 Basics
You own 10 shares at $400. The company does a 4-for-1 stock split. What do you hold afterwards?
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Difficulty 26/100 Basics
Which company is bigger by market value?
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Difficulty 28/100 Basics
You want exposure to the whole S&P 500 in one purchase. What do you actually buy?
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Difficulty 30/100 Basics
A company is liquidated. In what order are claims usually paid?
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Difficulty 33/100 Basics
You bought a share at $50. A year later it is $53 and you received $2 in dividends. What is your total return?
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Difficulty 34/100 Basics
A company has 150 million shares trading at $12. Which size bucket is it usually placed in?
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