SGM Investing Terms
SGM Investing Terms
Asset - Resource with economic value that a person or company owns with the expectation that
it will provide a future benefit.
Bear Market - Condition of financial markets in which stock prices are falling.
Bond - Fixed income instrument that represents a loan made by an investor to a borrower.
Bull Market - Condition of financial markets in which stock prices are rising.
Compound Interest - Interest calculated on the principal and the accumulated interest, basically
interest on interest.
Earnings Report - Filing made by a public company that reports financial performance.
Liability - Financial obligation to pay someone, basically a debt. A liability is the opposite of an
asset, it takes your money away.
Stock - Piece of a company that signifies ownership and claims part of the corporation’s assets
and profits.
DCA- Dollar-Cost Averaging - A strategy that allows an investor to buy the same dollar amount
of an investment regularly.
DPS - Dividends Per Share - The dollar amount of dividends paid per share.
DJIA - Dow Jones Industrial Average - Price-weighted index that tracks 30 large publicly-owned
companies trading on the NYSE and Nasdaq. ‘The Dow’ is one of the most-watched indices in
the world.
EPS - Earnings Per Share - Portion of a company's profit allocated to each share of stock.
ETF - Exchange Traded Fund - Basket of assets, such as stocks or bonds, that tracks an
underlying index.
IPO - Initial Public Offering - Process of offering shares of a corporation to the public for the first
time.
NYSE - New York Stock Exchange - Stock exchange considered to be the largest
equities-based exchange in the world, based on total market cap.
REIT - Real Estate Investment Tr ust - Company that owns, operates, or finance real estate
investment properties.
Standard & Poor’s 500 - Capitalization-weighted index of the 500 largest stocks in
S&P 500 -
the U.S. Regarded as the best gauge of large-cap U.S. equities.
YTD - Year To Date - Refers to the period from the first trading day in the year to the present,
current day.
P/E ratio - Price to Earnings ratio - Used to value a company that measures its current share
price relative to its EPS.
Quick Ratio - Indicator of a company’s short term liquidity position and the ability to meet its
short term needs with its liquid assets.
Book value - Tells how much a company is worth if it stopped operating and sold off all assets
and paid off all debts.
P/S ratio - Price/Sales - Comparison of a company’s market cap to its revenue. Basically an
indicator of the value placed on each company’s sales. When compared to competitors, it can
reveal which company is overvalued or undervalued based on this metric.
Quarterly revenue growth - Increase in a company’s sales when compared to the previous
quarter’s performance.
Quarterly earnings growth - Increase in a company’s earnings when compared to the previous
quarter’s performance.
Basic Terms
Analyst - Financial professional with expertise in evaluating investments, usually to make buy,
sell, and hold recommendations, or to give estimates for a company’s financials before a
company reports their earnings.
Averaging down - Process of buying shares at a lower price than you originally bought to lower
your average price, in hopes of the share price to rise in the future.
Balance sheet - Financial statement that shows a company’s assets, liabilities, and
shareholders’ equity. It shows what the company owns and owes, as well as the amount
invested into the company from shareholders.
Beta - Relative measure of volatility. The market average is 1, below 1 is less volatile than
average and vice versa.
Bid-ask spread - Amount by which the asking price exceeds the bid price for a stock. It’s the
difference between the highest price that a buyer is willing to pay for a stock and the lowest
price that a seller is willing to accept.
Blue-chip stocks - Stock of a large, well-established and financially sound company that has
operated for many years.
Brokerage - Account that allows an investor to deposit funds and buy assets through it.
Cash Flow Statement - Financial statement that measures how well a company manages its
cash, to pay back their debts and operating expenses.
Commodities - Basic good used in commerce that is interchangeable with other commodities of
the same type.
Common Stock - Most common type of stock which has voting rights, but the dividend is not
insured (meaning the company doesn’t have to pay for it), but can go up each year and is the
last to get paid (If a company goes bankrupt, a common stock shareholder is the last and most
likely to not get paid what they deserve.)
Defensive stock - A stock that provides a constant dividend and stable earnings regardless of
the state of the overall stock market.
Discount brokerage - A do-it-yourself brokerage account that has low costs, but offers few
services compared to a full-service brokerage account.
Dividend Date - Date when the company pays a dividend to its shareholders.
Earnings call - Conference call between the management of a public company, analysts,
investors, and the media to discuss the company’s financial metrics results during the quarter,
you can go to the company’s website or your brokerage to listen to the call.
Earnings Season - The months of the year during which most quarterly company earnings
released to the public. Earnings season starts one to two weeks after the last month of each
quarter. (Mid-January, mid-April, mid-July, and mid-October.)
Equity - The difference between the value of the assets and the value of the liabilities of
something owned, basically the net worth of a company. Equity = assets - liabilities
Ex-Dividend Date - Date which the company announces the payment of a dividend.
Expense Ratio - A fee that determines how much a fund’s assets are used for administrative
and operating purposes.
Fed - Federal Reserve System - Central banking system of the U.S. used to implement the
country’s monetary policy and provide a national system of ready cash.
Fiscal Quarter - 3-Month period on a company’s calendar that acts as a basis for periodic
financial reports (earnings reports.)
Full-service brokerage - Account with a financial advisor, who helps their clients develop
investment plans. A full-service brokerage charges higher fees but offers more research tools
and financial data.
Fundamental Analysis - Taking a look into the economic fundamentals (Income Statement,
Cash Flow Statement, etc.) of a company, and deciding if it is a good investment.
Income statement - Financial statement used for reporting a company’s financial performance
over a specific period by tracking the revenue, expenses, gains, and losses.
Industry - Very specific group of companies or businesses, more defined than a sector.
Margin Call - Occurs when the margin account value falls below the required minimum value.
The broker demands the user/investor to deposit additional money so that the account is
brought up to the minimum balance.
Margin of Safety - Investing principle used when an investor only purchases an investment
when the current price is below their intrinsic value or believed value.
Market capitalization - Market Cap - Value of a company, calculated by multiplying the total
number of shares by the current stock price.
Moat - Distinct advantage a company has over its competitors, which allows it to protect its
market share and profitability.
Nasdaq Composite - Capitalization-weighted Index of more than 3,000 stocks listed on the
Nasdaq exchange that includes the top technology stocks.
Overbought - A security that analysts or traders believe is trading above its intrinsic value.
Oversold - A security that analysts or traders believe is trading below its intrinsic value.
Penny stock - Stock that is usually associated with small companies and a lack of liquidity, and
trades under $5.
Portfolio - A grouping of financial assets, such as stocks or bonds directly held by an investor.
Profit Margin - Ratio to gauge profitability, which represents the percentage of revenue turned
into profit.
Preferred Stock - A type of stock that is paid a fixed dividend (no increase or decrease) before
common shareholders and ranked in higher importance but does not have voting rights.
Price-weighted index - Stock index where each holding is proportional to its stock price and
impact the stock has on the index. The higher priced the stock is, the higher amount is held in
the index.
Resistance - A price level that a security doesn’t usually go above, made from sellers exiting the
investment whenever the price reaches a certain high point. Can be made by drawing a line
along with the highest highs of a chart.
Reverse Stock Split - Corporate action that reduces the number of shares of a stock to increase
the price. This is usually a bearish sign for the stock.
Sector - Broad term describing the business type. There are only about a dozen sectors.
Security - Type of financial instrument that holds some type of monetary value.
Shareholders Equity - Represents the amount of money that would be returned to the
shareholders if all the assets were liquidated and all company’s debts paid off. If positive, the
company has enough assets to cover its liabilities and vice versa.
Short - Sale of a stock that the seller has borrowed from a brokerage, and will try to buy back
lower, for a profit. The risk of loss is unlimited, so it should only be used by experienced traders.
Stock Buyback - Happens when a company buys back its stock for making use of its cash and
reducing the shares on the market, making each share worth more (in theory.)
Stock Split - Corporate action that increases the number of shares by dividing each share,
which lowers the price. This is usually a bullish sign for the stock.
Split Factor - How a stock splits and by how much. Example: a 2-for-1 stock split will split the
number of shares you own by 2 and half the price. The total market value of your shares will
remain the same. The ‘2-for-1’ is the split factor if the stock split.
Support - A price level that a security doesn’t usually fall under, made from buyers entering the
investment whenever the price falls to a certain point. Can be made by drawing a line along with
the lowest lows of a chart.
Technical Analysis - Looking into the security by analyzing the price action and volume rather
than looking into the investment through the analysis of fundamentals. Technical analysis is
based on historical data, like patterns, to predict where it might go next.
Watchlist - List of stocks being watched for potential trading or investing opportunities.
Whisper number - Unofficial and unpublished EPS estimates, determined by investors and
researchers (not analysts.)
Quizzes
If Coca-Cola raised its $1 dividend by 10%, how much more would investors get after every
payment?
1. $0.01
2. $0.10
3. $0.25
4. $1.20
If Apple’s stock is currently $110, and the stock rose 5%, what price would Apple be at now?
1. $106
2. $110
3. $115.50
4. $116
If Walmart's stock was $80 and jumped 10% on good news, what would the stock price be?
1. $81
2. $86
3. $88
4. $90
If Amazon was at $1,000 and went up 50% in one year, what would the stock price be?
1. $950
2. $1,050
3. $1,300
4. $1,500
1. MDS
2. MCS
3. MCD
4. DNS
What is the stock ticker for Coca-Cola?
1. CC
2. KO
3. COCL
4. CO
1. 300
2. 400
3. 500
4. 1000
1. 10
2. 20
3. 25
4. 30
1. Preferred
2. Common
3. Original
4. Exclusive
1. Weekly
2. Monthly
3. Quarterly
4. Annually
Who founded Apple?
1. Bill Gates
2. Adam Sandler
3. Warren Buffett
4. Steve Jobs
1. Warren Buffet
2. Steve Jobs
3. Jeff Bezos
4. Bill Gates
1. Steve Jobs
2. Bill Gates
3. Warren buffett
4. Jeff Bezos
1. Monthly
2. Quarterly
3. Semi-annually
4. Annually
1. Price
2. Piece
3. Company
4. Return
What tells how much a company is worth if it stopped operating and sold off all assets and paid
off all debts?
1. Networth
2. Expense
3. Equity
4. Bankruptcy
1. Interest on interest
2. Money making more money
3. The exponential growth of your money
4. All of the Above
The higher the ________ yield, the more you get paid.
1. Dividend
2. Money
3. Ratio
4. Payout
When a stock raises its dividend, the price of the stock usually goes ____.
1. Up
2. Down
3. Nowhere
4. None of the above
When a stock lowers its dividend, the price of the stock usually goes ____.
1. Up
2. Down
3. Nowhere
4. None of the above
What is a dividend?
1. Funded
2. Private
3. Common
4. Accepted
1. DNY
2. DIS
3. DSN
4. DIN
What should you do if the stock market falls?
1. Buy
2. Sell
3. Don't think about it
4. Never invest again
1. Books
2. Courses
3. Webinars/Seminars
4. All of the above
1. Fundamental analysis
2. Technical analysis
3. Economic analysis
4. None of the above
What type of investment takes the price action and volume into account?
1. Fundamental analysis
2. Technical analysis
3. Economic analysis
4. None of the above
If a stock falls, and it is undervalued, growing, and worth your money, what do you do?
1. Buy
2. Sell
3. Ignore it
4. Don’t buy it, because it could fall more
Stocks go __ when people think they are undervalued and will return their money and then
some in the future.
1. Up
2. Down
3. Sideways
4. None of the above
1. ETF
2. Mutual fund
3. Index fund
4. All of the above
1. 1
2. 3
3. 5
4. 10
1. Fundamental value
2. Intrinsic value
3. Economic value
4. None of the above
1. NYSE
2. NASDAQ
3. TSX
4. LSE
How is the DJIA weighted?
1. Equally
2. Capitalization-weighted
3. Price-weighted
4. Randomly
1. Margin of competitiveness
2. Moat
3. Demand
4. Profit
1. Gauge Ratio
2. Profit Probability
3. Profit Margin
4. Revenue Margin
1. Full-service brokerage
2. International Brokerage
3. Cheap brokerage
4. Discount Brokerage
1. Equity
2. Liability
3. Profit
4. Revenue
What is an indicator of a company’s short term liquidity position, and the ability to meet its short
term needs with its liquid assets called?
1. Quick ratio
2. P/E ratio
3. Dollar ratio
4. Liquid ratio
What ratio is used to value a company by comparing the EPS to the price of a company?
1. P/G ratio
2. EPS ratio
3. P/E ratio
4. H/E ratio
1. NYSE
2. NASDAQ
3. LSE
4. TSX
1. S&P 500
2. Russell 2000
3. Nasdaq 100
4. Dow Jones Industrial average
Which index comprises 2000 different companies?
1. S&P 500
2. Russell 2000
3. Nasdaq 100
4. Shanghai 100
1. AMAZ
2. AAON
3. AZN
4. AMZN
1. Liquid asset
2. Hard asset
3. Liability
4. Expense
1. YETD
2. YTD
3. YTOD
4. YTDT
What is an analyst?
1. Ask
2. Offer
3. Spread
4. Sale
What is beta?
1. An investment
2. A relative measure of volatility
3. A safe dividend
4. A small company
What is a float?
1. Group
2. Space
3. Industry
4. Block
1. Water asset
2. Liquid asset
3. Easy asset
4. Hard asset
1. Stock split
2. Reverse stock split
3. Sideways stock split
4. None of the above
1. Company indulgence
2. Stock buyback
3. Company repurchase
4. Stock absorption
1. Startup
2. Unicorn
3. Nine-0s
4. 1-in-a-billion
Which index tracks small-cap stocks?
1. Russell 2000
2. S&P 500
3. DJIA
4. NASDAQ
1. 1 week
2. 4 weeks
3. 3 months
4. 6 months
What is the date in which the company announces the payment of a dividend?
1. Payment date
2. Ex-dividend date
3. Dividend date
4. Earnings report
1. Networth
2. Equity
3. Market Cap
4. Profit Margin
What is a strategy that allows investors to buy the same dollar amount of an investment
regularly?
1. DCA
2. DPS
3. EPS
4. ETF
What is a portion of a company's profit allocated to each share of stock called?
1. Exchange-Traded Fund
2. Initial Public Offering
3. Profitability
4. Earnings Per Share
Which ratio takes the stock price, earnings and earnings growth into account?
1. P/E ratio
2. PEG ratio
3. P/B ratio
4. Quick Ratio
1. Cap-to-rev ratio
2. P/S ratio
3. M/R ratio
4. Sales ratio
1. It will go up
2. It will go down
3. It won’t move
4. It will have a good earnings report
What does a bull believe will happen to a stock?
1. It will go up
2. It will go down
3. It won’t move
4. It will have a good earnings report
1. Stocks go up
2. Stocks go down
3. Stocks don't move
4. Stocks stop trading
1. Stocks go up
2. Stocks go down
3. Stocks don't move
4. None of the above
1. Assets
2. Liabilities
3. Shareholder’s equity
4. All of the above
What is the difference between the highest price that a buyer is willing to pay for a stock and the
lowest price that a seller is willing to accept for a stock called?
1. Float
2. Shareholder’s equity
3. Bid-ask spread
4. None of the above
What type of stock index is determined by the market cap of its holdings?
1. Equally-weighted index
2. Capitalization-weighted index
3. Price-weighted index
4. Random-weighted Index
1. Buy
2. Sell
3. Ignore it
4. None of the above
What is a catalyst?
What is a conference call between the management of a public company, analysts, investors,
and the media to discuss the company’s financial metrics results during the quarter called?
1. Earnings call
2. Earnings report
3. Profit conference
4. Money report
What is the months of the year which most company report earnings called?
1. Earnings call
2. Expense ratio
3. Earnings season
4. Bid-ask spread
1. EPS
2. Ticker
3. Dividend
4. Operating system
1. Companies
2. Start-ups
3. Real estate
4. Amusement parks
What type of stock is large, well-established and financially sound that has operated for many
years?
1. Diversified
2. Blue-Chip
3. S&P 500
4. Green-Sound
What is a bond?
1. Group
2. Basket
3. Portfolio
4. Investor data
1. Support
2. Resistance
3. Balance
4. None of the above
5. Support
6. Resistance
7. Balance
8. None of the above
1. Stock owner
2. Part-company owner
3. Asset
4. Shareholder
What does DCA stand for?
1. Revenue + Profit
2. Expenses - Liabilities
3. Revenue - Expenses
4. Expenses + Liabilities
1. Revenue
2. Expenses
3. Gains/Losses
4. All of the above
Which type of brokerage account lends money to investors at a specific interest rate?
1. Cash Account
2. Margin Account
3. Moat Account
4. Real estate account
What is the number of shares of stock traded in a specific time period called?
1. Stock
2. Volume
3. Interest Rate
4. Margin
What is a list of stocks being watched for investment opportunities called?
1. Unicorn
2. Resistance
3. Watchlist
4. EPS
1. Earnings reports
2. Dividend payment
3. Quarterly results
4. All of the above
1. Accumulate wealth
2. Collect dividends
3. Invest for the long term
4. All of the above
Answers
1. $0.10
2. $115.50
3. $88
4. $1,500
5. MCD
6. KO
7. 500
8. 30
9. Preferred
10. Quarterly
11. Steve Jobs
12. Jeff Bezos
13. Bill Gates
14. Quarterly
15. Piece
16. Networth
17. All of the above
18. The percentage of earnings paid as a dividend to shareholders
19. Initial Public Offering
20. Dividend
21. Up
22. Down
23. A payment from the company to the shareholders
24. Common Stock
25. DIS
26. Buy
27. All of the above
28. Fundamental analysis
29. Technical Analysis
30. Buy
31. Up
32. ETF
33. 5
34. Intrinsic value
35. NYSE
36. Price-weighted
37. Moat
38. Profit Margin
39. Discount brokerage
40. Equity
41. Quick ratio
42. P/E ratio
43. Facebook, Apple, Amazon, Netflix, Google
44. NASDAQ
45. S&P 500
46. Russell 2000
47. AMZN
48. Dividends per share
49. Liability
50. YTD
51. A financial professional with expertise in evaluating investments
52. Ask
53. A relative measure of volatility
54. Shares a company has issued to the public to trade
55. Expense Report
56. Industry
57. Liquid asset
58. Reverse stock split
59. Stock buyback
60. Unicorn
61. Russell 2000
62. 3 months
63. Ex-dividend date
64. Market Cap
65. DCA
66. Earnings Per Share
67. A fee that is paid for administrative and operating purposes of an ETF, or fund
68. PEG ratio
69. P/S ratio
70. It will go down
71. It will go up
72. Stocks go up
73. Stocks go down
74. All of the above
75. Bid-ask spread
76. Capitalization-weighted index
77. Buy
78. How well a company manages its cash
79. An event that propels a stock dramatically up or down
80. Earnings call
81. Earnings season
82. Ticker
83. Real Estate
84. Blue-Chip
85. A fixed-income instrument that represents a lan made by an investor to a borrower
86. They remain relatively stable through economic downturns
87. Portfolio
88. Resistance
89. Support
90. Shareholder
91. Dollar Cost Averaging
92. Revenue - Expenses
93. All of the above
94. Margin account
95. Volume
96. Watchlist
97. All of the above
98. All of the above
99. Unofficial earnings forecasts not made by analysts