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SMG
Will help you learn about stocks
Can help make you wealthy.
Will help you learn how to invest in the Stock Market.
A realistic simulation for investing in the Stock Market.
The Stock Market Game is
Mandatory.
Which of the following is TRUE?
You must make at least ONE Transaction per WEEK during the Stock Market Game
There will be a 5 point deduction (-5) for each week that you did not make a Transaction.
You must make at least TWENTY Transactions total.
SMG lasts 10 weeks.
Your ending PV is $175,000, and you made at least one trade every week, but you only made 12 trades total. Your score for the SMG, entered into Focus, will be…
135.
Your ending PV is $85,000. You forgot to make a transaction one week, but you had 15 total. Your score for the SMG entered into Focus will be..
55.
Your ending PV is $50,000. You made one transaction every week and 30 total. Your score for the SMG entered into Focus will be…
100.
PV stands for
Portfolio Value
Your Investment Portfolio can include all of the following, EXCEPT
Credit Card
House that you rent.
Housse that you own.
Checking Account.
Which of the following is a Stock Market?
NYSE (New York Stock Exchange)
NASDAQ
Which of the following is a Stock Market Index?
DJIA (Dow Jones Industrial Average)
S&P 500.
The S&P 500
stands for the Standard & Poor's 500
tracks the stock prices of 500 of the largest US companies
is an indicator of the performance of the stock market as a whole
The stock index.
The DJIA
Nicknamed for Dow.
Tracks stock prices of 30 of the largest companies in the US.
Stock index.
Stands for Dow Jones Industrial Average
Is an indicator of the performance of the stock market at a whole.
Most commonly watched stock market indicator.
The NYSE
Lists stock of companies that are generally considered “blue chip”.
Stock exchange where you can buy and sell stocks.
Lists stocks of companies; generally larger.
Lists stocks of companies; generally older.
The National Association of Securities Dealers Automated Quotation System
primarily includes stocks of companies that are involved in technology
Nicknamed NASDAQ
is the first ever electronic stock market in the world
is a stock exchange where you can buy and sell stocks
tracks the stock prices of companies listed with it
Stock Index.
NASDAQ was established in…
1971
Which of the following is both a Stock Exchange and a Stock Index?
NASDAQ
Which of the following stocks is listed on the NASDAQ?
Microsoft (MSFT)
Meta (META)
Netflix (NFLX)
Amazon (AMZN)
APPLE (AAPL)
Alphabet (GOOG)
Nvidia (NVDA)
Tesla (TSLA)
Which of the following stocks is listed on the NYSE?
Coca Cola (KO)
Mcdonald’s (MCD)
Walmart (WMT)
Citigroup (C)
Home Depot (HD)
Exxon Mobil (XOM)
Boeing (BA)
Visa (V)
US Steel (X)
Ford (F)
General Motors (GM)
Chipotle (CMG)
Bank of America (BAC)
AT&T (T)
General Electric (GE)
Which of the following stocks is included in the S&P 500?
All of these.
In this list of Stocks, what do the letters in parentheses represent?
Stock Symbol for the company.
Match the following Stock Symbols to their Company:
BA = Boeing
V = Visa
WMT = Walmart
GOOG = Alphabet
F = Ford
KO = Coca Cola
X = US Steel
When a company is "LISTED", it means that it
Traded o a stock exchange.
Generally, the Stock Symbols of companies listed on the NASDAQ
are expressed in FOUR or MORE letters
are expressed in CAPITAL letters
Generally, the Stock Symbols of companies listed on the NYSE
are expressed in LESS than FOUR letters
are expressed in CAPITAL letters
Generally, the Stock Symbols of companies listed on the DJIA
the DJIA is NOT a Stock Exchange
Generally, the Stock Symbols of companies listed on the S&P 500
the S&P 500 is NOT a Stock Exchange
With respect to Stock, a "transaction" is generally buying or selling stock.
True.
With respect to a stock order, "executed" means that
Order has been filled.
Which of the following is true with respect to stock ownership?
Shareholder = Stockholder
Stockholder is an owner of the company.
When you buy stock in a company; you have become an owner of that company.
Common Stockholders may vote for the company’s Board of Directors and other matters of company business.
Which of the following are types of Stock transactions?
Stop Loss
Market
Short Sell
Buy
Limit
Sell
The technique of buying and owning several different Investments to hold in your Portfolio:
Diversification
DIVERSIFICATION is an investing technique
where you maintain several different investments in your Portfolio
Helps spread your risk.
Which of the following Investments provides DIVERSIFICATION all by itself?
Mutual Fund
ETF
If you sell stock for a GAIN, it is
Realized capital gain.
If Stock you own goes up in value, it is
Unrealized Capital Gain
After you sign in for the SMG, you will see five Tabs. They are:
Portfolio
Home
Trade
Resources
Logout
After signing in, as you look at your Account Info while scrolling down, you will find which of the following?
1. a Message Box to the right (which you can Close by clicking on the X in the upper right corner)
the Message Box offers "help getting started" along with messages
3. your Total Equity, Net Equity Gain, Buying Power, Cash Balance
2. your Regional and State Ranking (when you Close the Message Box)
4. There is a pie chart that shows the total value of your Portfolio, Long Positions, Short Positions and Cash.
You should ignore the pop up Message Box on the right side of your Account Info when you Login.
False.
Match the Term with its Meaning.
the spreading of your Portfolio Risk by investing in several different investments = Diversification
the dollar amount in your Portfolio available for you to spend = Buying Power
the amount of Cash remaining in your Portfolio with which to invest = Cash Balance
borrowing money, using your current stock holdings as collateral, to buy more stock = Margin
total current value of your Portfolio = Total Equity
the total increase (or decrease) in the value of your Portfolio = Net Equity Gain.
Net Equity Gain is the same as Capital Gain for tax purposes.
True.
If you have a stock in your Portfolio that is showing a decrease in value,
you haven't actually lost any money until you sell it
it may be a good time to buy some more
if you liked the price you paid when you bought it, you should probably keep it
Long Positions are stocks that you Bought.
True
Short Positions are stocks that you Sold Short.
True
Which of the following are True about Selling Short?
if the price of that stock goes DOWN, the value of your Portfolio goes up
you are selling stock you don't own
you are borrowing someone else's stock so that you can sell it
you expect, or hope, that the price of that stock will go DOWN
Which of the following are TRUE about Stock Splits?
the price of a stock usually goes up after a split
in a Reverse Split, a company is trying to raise the price of its stock.
it is generally taken as a positive sign because the stock price has been going up
Usually the company’s purpose is to make its stock more affordable to investors.
A stock that splits one for two (1:2) known as reverse split.
In a two for one (2:1) split, the number of shares you own double.
in a two for one (2:1) split, the value of your stock stays the same
Which of the following are True about "Covering"?
it's what you do when you want to lock in a Short Sale gain
it 's what you do to complete a Short Sale to reduce the loss
it completes a Short Sale transaction
it is the flip side of a Short Sale
it means that you have bought back the stock you borrowed to "Cover" your Short Sale
LIQUIDATING a position means
Selling a stock you bought
Covering a stock you sold short.
When you buy stock on Margin.......
you use the stock you currently own as collateral
you are borrowing money
it is riskier than using your own money
it allows you to buy more stock without using your own money
you pay interest on the Margin amount
An Executed Trade is one that
has actually transacted and been filled
a DIVIDEND is the partial distribution of a company's profits to its Shareholders
True
Which of the following is associated with the term BEAR with respect to the stock market?
it's a stock market that's dropping
investors selling
a pessimistic investor that believes the stock market will go down
Which of the following is associated with the term BULL with respect to the stock market?
it's a stock market that's rising
investors buying
an optimistic investor that believes the stock market will go up
Rules of the Game may be found
Resources Tab
Which of the following are Portfolio Rules
If you run out of Cash, you may borrow money against your Equity to buy more Stock
you will pay Interest on Money you Borrow
you will receive Interest on the Cash in your Portfolio
When you are low on Cash and you borrow money against the Equity in your Portfolio to buy more Stock, you are
Using Margin
In the Stock Market Game, you will start with
$100,000
Which of the following are Transaction Rules?
you may place orders any time
you may Buy any stock as long as it has a value of at least $3.00 per share
you may place a Limit on the price you want to buy or sell
you must transact at least TEN (10) shares when Buying stock
you may make as many Transactions per week as you would like
you may Sell stock that you own at any price
you may make transactions between 9:30AM and 4:00PM Eastern Time
Note 
Flashcard (21)