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1 - What is a stock?

2 months ago

1 - What is a Stock?

Stocks are pieces or shares of ownership of a company. All the shares equal the total value of a company.

You can buy shares in publicly traded companies like Apple, Facebook and Nike. Investors can buy and sell shares of public companies on the stock market.

If the company grows the value of the shares generally goes up. If the company underperforms the values of the shares usually goes down.

2 - What is an ETF?

An ETF, also known as an Exchange Traded Fund is a basket of stocks, bonds, commodities or other types of financial assets. The ETF merges the benefits of stocks and mutual funds into one convenient product.

Stocks can be easily traded during the day and mutual funds give you diversification. An ETF is simply an exchange traded equity with the benefit of diversification built into it.

3 - What is Asset Allocation?

Asset allocation is a strategy to help you minimize the risk in your investment portfolio. It involves selecting a mix of different investments that are appropriate for your personal level of risk tolerance, time horizon, and financial goals.

The most common types of investments or asset classes are equities, such as stocks, and fixed income such as bonds and cash.

Each asset class has different levels of risk and return characteristics. So, each will behave differently over time.

4 - What is a Bond?

A bond, also known as a fixed income instrument is a contract where a company or a government borrows money for a period of time, in return for interest payments.

There are mainly two kinds of bonds - coupon bonds and zero coupon bonds. Companies typically issue coupon bonds, while governments usually issue zero coupon bonds.

Theoretically, bonds are a relatively safe way to secure returns on your investment.

5 - What is Investing?

Investing is like climbing a mountain, you set your sights on a certain goal be it the summit, or your portfolio value. It's never a straight path to reach the goal. A good climber makes adjustments with new strategies and tools on the mountain.

Investors can do the same. We make adjustments to our portfolio as economic conditions change. This decision is very personal and must be based on your own experience, tolerance for risk and time horizon.

The key to successful investing is to understand what kind of investor you are.

6 - What is Money?

Before the invention of money as we know it today, societies exchange goods and services through bartering.

Precious metals were then used as a means of exchange, with the introduction of coins helping governments standardize their value and eventually leading to promissory notes which became the first paper money. We no longer have a need for physical money.

Most of the dollar changing hands today is in digital form. As long as people have confidence in it currently, it does not even need to be issued by a government.

7 - What are the Different Order Types?

When trading stock, there are a number of different orders you would place. These orders are instructions for when and how you want the stock to be bought or sold. Which ones you choose are dependent on your investment strategy and style, as well as share price fluctuations.

Some of the order types available include market orders, limit orders, good till date orders, stop orders, stop loss orders and stop limit orders.

8 - What is Cryptocurrency?

Bitcoin is a cryptocurrency, a form of currency that isn’t physical and only exists online. But today most money exists online. What makes cryptocurrencies different to other digital currency is that it isn’t issued by a government or a bank.

Unlike traditional banks which are centralized systems where all payments enter and leave through one central hub, Bitcoin is a decentralized system where transactions are recorded in a time-stamped virtual ledger called the blockchain.

9 - What is Diversification?

Asset diversification helps investors decrease the presence of risk in their investments. Ways of achieving a diverse portfolio include investing in companies that are based in different countries, owning stock in both small and large companies and investing in companies across a wide array of industries.

You don't want your assets to be too similar or in the same place. Diversification is measured by correlation, the value that represents what happens to the remainder of assets in a portfolio, when one asset changes in value.

10 - Returns vs Risk

Investors need to consider the balance between risk and return in their investments. By using certain tools and measures such as the Sharpe Ratio they calculate the risk adjusted return of an investment - how much return they are getting in regards to the amount of risk they’re taking.

Generally, the greater the Sharpe ratio value, the better the risk adjusted returns tend to be. This process is extremely important for investors to better understand their assets.
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1 - What is a stock?

2 months ago
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2 - What is an ETF?

2 months ago
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3 - What is Asset Allocation?

2 months ago
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4 - What is a Bond?

2 months ago
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5 - What is investing?

2 months ago
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6 - What is money?

2 months ago
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7 - What are the different order types?

2 months ago
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8 - What is cryptocurrency?

2 months ago
03:03
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9 - Diversification

1 month ago
02:09
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10 - Return vs Risk

1 month ago

1 - What is a Stock?

Stocks are pieces or shares of ownership of a company. All the shares equal the total value of a company.

You can buy shares in publicly traded companies like Apple, Facebook and Nike. Investors can buy and sell shares of public companies on the stock market.

If the company grows the value of the shares generally goes up. If the company underperforms the values of the shares usually goes down.

2 - What is an ETF?

An ETF, also known as an Exchange Traded Fund is a basket of stocks, bonds, commodities or other types of financial assets. The ETF merges the benefits of stocks and mutual funds into one convenient product.

Stocks can be easily traded during the day and mutual funds give you diversification. An ETF is simply an exchange traded equity with the benefit of diversification built into it.

3 - What is Asset Allocation?

Asset allocation is a strategy to help you minimize the risk in your investment portfolio. It involves selecting a mix of different investments that are appropriate for your personal level of risk tolerance, time horizon, and financial goals.

The most common types of investments or asset classes are equities, such as stocks, and fixed income such as bonds and cash.

Each asset class has different levels of risk and return characteristics. So, each will behave differently over time.

4 - What is a Bond?

A bond, also known as a fixed income instrument is a contract where a company or a government borrows money for a period of time, in return for interest payments.

There are mainly two kinds of bonds - coupon bonds and zero coupon bonds. Companies typically issue coupon bonds, while governments usually issue zero coupon bonds.

Theoretically, bonds are a relatively safe way to secure returns on your investment.

5 - What is Investing?

Investing is like climbing a mountain, you set your sights on a certain goal be it the summit, or your portfolio value. It's never a straight path to reach the goal. A good climber makes adjustments with new strategies and tools on the mountain.

Investors can do the same. We make adjustments to our portfolio as economic conditions change. This decision is very personal and must be based on your own experience, tolerance for risk and time horizon.

The key to successful investing is to understand what kind of investor you are.

6 - What is Money?

Before the invention of money as we know it today, societies exchange goods and services through bartering.

Precious metals were then used as a means of exchange, with the introduction of coins helping governments standardize their value and eventually leading to promissory notes which became the first paper money. We no longer have a need for physical money.

Most of the dollar changing hands today is in digital form. As long as people have confidence in it currently, it does not even need to be issued by a government.

7 - What are the Different Order Types?

When trading stock, there are a number of different orders you would place. These orders are instructions for when and how you want the stock to be bought or sold. Which ones you choose are dependent on your investment strategy and style, as well as share price fluctuations.

Some of the order types available include market orders, limit orders, good till date orders, stop orders, stop loss orders and stop limit orders.

8 - What is Cryptocurrency?

Bitcoin is a cryptocurrency, a form of currency that isn’t physical and only exists online. But today most money exists online. What makes cryptocurrencies different to other digital currency is that it isn’t issued by a government or a bank.

Unlike traditional banks which are centralized systems where all payments enter and leave through one central hub, Bitcoin is a decentralized system where transactions are recorded in a time-stamped virtual ledger called the blockchain.

9 - What is Diversification?

Asset diversification helps investors decrease the presence of risk in their investments. Ways of achieving a diverse portfolio include investing in companies that are based in different countries, owning stock in both small and large companies and investing in companies across a wide array of industries.

You don't want your assets to be too similar or in the same place. Diversification is measured by correlation, the value that represents what happens to the remainder of assets in a portfolio, when one asset changes in value.

10 - Returns vs Risk

Investors need to consider the balance between risk and return in their investments. By using certain tools and measures such as the Sharpe Ratio they calculate the risk adjusted return of an investment - how much return they are getting in regards to the amount of risk they’re taking.

Generally, the greater the Sharpe ratio value, the better the risk adjusted returns tend to be. This process is extremely important for investors to better understand their assets.