GEMATHMW-INVESTING

• What are stocks?


  Shares of ownership in a company
• What is a bond?


  A buyer of a bond is lending money to the corporation that issues it
• What are the types of bonds?

  • Government bonds
  • Corporate bonds
  • Zero-coupon bonds
• What is a mutual fund?


  A company that pools money from many investors and invests it in securities
• What rights do stockholders have?


  Voting in shareholder meetings, receiving dividends, and selling shares
• What are the mathematical aspects involved in stock trading?


  • Buying and selling shares
  • Tracking share price movements
  • Computing dividends
  • P/E and EPS calculations
• How do we earn from stocks?


  Through stock appreciation and dividends
• When should you buy stocks according to the strategy mentioned?


  When prices go down
• Why do companies issue stocks?


  To raise funds for possible business expansion
• What is an Initial Public Offering (IPO)?


  The term used when a company issues shares of stocks for the first time
• What is technical analysis in stock trading?


  • Study of historical market data
  • Includes price and volume analysis
  • Used to predict future market behavior
• What is market capitalization?


  The total value of all a company's shares of stock
• What is a BoardLot?


  The minimum number of shares needed for a stock selling at a certain price
• What does fluctuation refer to in stock trading?


  Price increase or decrease per tick
• What is fundamental analysis?


  • Method of measuring a stock's intrinsic value
  • Seeks companies priced below their real worth
• What does EPS stand for?


  Earnings per share
• How is EPS calculated?


  It is calculated on a quarterly or annual basis
• What does the P/E ratio measure?


  The current share price relative to its earnings per share
• What is trading psychology?


  • The study of emotional and mental factors in trading
  • Influences decision-making and market behavior
• What are online trading platforms?


  Platforms that allow trading of stocks and securities over the internet