Investing Simulation

1-What is stock?

Read the Articles and answer the question

Article:https://docs.google.com/document/d/1Cg5f5MPI3WyhPWr_iCkuIBG6PMMQssJWVyBOqQo8uLA/edit?usp=sharing

Quiz:

Pop QuizWhat does a Stock represent?

	A loan you make to a company that they must pay back
	A percentage of ownership of a company including assets and profits
	A contract for a company's goods or services
	Stocks are just tools used by investors to make money

What is Preferred Stock?

	Stock that gets paid dividends first
	Stock that lets its owners vote in shareholder meetings
	Stock that is always worth the most
	Stock that is only owned by managers

What is an IPO?

	When a company first sells shares of stock to the public
	When the government creates shares on a Stock Exchange
	A new Apple product
	When a company gets angry at its shareholders and has a meeting

The company Apple has how many shares outstanding?

	5,575 shares
	55,750 shares
	5,575,000 shares
	5,575,000,000 shares

Where were stocks first created?

	Egypt
	Rome
	London
	New York

2-What is a Ticker Symbol?

Article https://docs.google.com/document/d/1SbDvXs_Q80kJD4tv3nNwaZaZZG3sj2Q1S3iDrywLBjs/edit?usp=sharing

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

	Between 1 and 5 Letters or Numbers
	The first 3 letters of a company's name
	Between 1 and 5 letters only
	Between 1 and 7 numbers only

Why did investors start using ticker symbols?

	It was faster to move news using telegraphs with short names
	Investors liked to use "Text Speak" to communicate in code
	To confuse "casual" investors and keep trading to professionals
	It makes it faster to look up multiple companies at a time on a computer

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

	There are multiple classes of stock for this company
	The company has filed for bankruptcy
	This stock currently has special trading rules
	This would always represent "Preferred Stock"

3-Getting (and understanding) Stock Quotes

Article:https://docs.google.com/document/d/1YLIQwfDh73e2s_Suxu9H4jIA9Enu-LnjWxspRkJwKGM/edit?usp=sharing

Pop Quiz! What does a Stock Quote represent?

	A famous quote from that company's CEO
	The last price a seller and buyer agreed to to make a trade
	The current price/asset ratio of a stock
	The current attitude professional stock analysts have towards a company

Which of these items can you find in a stock quote?

	Current Assets
	The date the stock first was sold to the public
	Historical prices for a stock
	The stock's current daily volume

What is "Net Change"?

	The total amount a stock's price has changed since the previous trading day
	The total price of a stock, in cents
	The total amount a stock's price has changed since the market opened
	The change in a stock's value over the last year

4-Why Invest in Stocks

Article:https://docs.google.com/document/d/17D1htCN8rMFaQgn9bOzZgZPT4boW6nP858piXZ9fniU/edit?usp=sharing

Pop Quiz!If you had invested $100 in 1972 in the 500 stocks of the S&P500 Index, how much would you have had in 2018?

	$401
	$500
	$1,612
	$3,072

Over the last 30 years or so, which investment produced the highest percentage returns?

	Gold
	Savings Accounts
	Bonds
	Stocks

Over the last 90 years, which investment produced the most volatile returns?

	Gold
	Savings Accounts
	Bonds
	Stocks

5-How Do I Build a Diversified PortfolioArticle:https://docs.google.com/document/d/1Hi1yAPAYjLPHWJ68BRbBUFzVhMy39dgM6D6zKYnnkH0/edit?usp=sharing

Pop Quiz!What does it mean to "Diversify" your portfolio?

	To hold more than 1 stock
	For your stocks to not be all in the same area of the economy
	To have a mix between stocks, mutual funds, or other securities
	A and B

What is Capital Preservation?

	To make sure you don't lose your initial investment
	To make sure you keep the gains you make investing
	When companies buy back stock
	It is when you use Stop orders

Why would you want to diversify between sectors?

	To make sure you get the maximum profit when one sector goes up
	In case a sector-wide event causes all stocks to drop
	Because every diversified portfolio has at least one energy stock and one technology stock
	Because every portfolio should have ETFs

What is a good way to stay diversified?

	Invest only in ETFs
	Invest only in Mutual Funds
	Re-balance your portfolio every 3 months
	These are all good ways to stay diversified

What is a danger of over-diversification?

	It is impossible to keep track of more than 10 stocks
	If your investments are spread thin, it is hard to beat the market
	Your portfolio has more risk than if you were less diversified
	None of these are serious dangers