Economics Investing 101 Term II, 2004-2005
Mr. Alexandro
1. What is economics?
2. What is the Law of Demand?
3. What is the Law of Supply?
4. Identify six factors that shift demand curves.
5. Identify five factors that shift supply curves.
Helpful sites for questions 5 through 21:
http://www.fool.com/school/glossary/glossary.htm
http://www.jkmcpa.com/Glossary.htm
6. What is stock?
7. What is a stockbroker?
Describe the difference between discount and full-service brokers.
8. What is the SEC?
9. What is the Dow Jones Industrial Average?
How many companies are included in the DJIA?
Who selects which companies are included?
List the current Dow Jones Industrials.
10. What is the S&P 500?
11. What is a mutual fund?
12. What is an index fund?
13. What is a margin account?
14. What does it mean to “short” a stock?
15. DRP: Dividend Reinvestment Plan
Explain what a DRP is.
What do most investors call DRPs?
16. What is day trading?
17. What is a penny stock?
17. What is a Balance Sheet?
18. Write the Accounting Equation.
Label and describe each component of the equation.
19. What is an Income Statement? (Include definition and alternative name)
20. Write the Net Income equation.
21. What does EPS stand for? How is it calculated?