{ "packId": "investing-201", "packName": "Investing 201", "packVersion": "1.2.6", "icon": "$", "shortName": "Investing 201", "description": "A dense, practical guide to financial markets, valuation, and wealth building. Covers market history and crashes, regulators, asset classes, value investing (Graham and Buffett), reading financial statements, DCF modeling, valuation metrics, the Rule of 72, investment strategies, sector rotation, the Magnificent Seven, essential vocabulary, the future of finance, and building a portfolio.", "author": "Flash Feed", "language": "en", "tagsVocabulary": [ "history", "exchange", "nasdaq", "crash", "regulation", "sec", "finra", "alphabet-soup", "asset-class", "equities", "bonds", "commodities", "crypto", "real-estate", "stock-types", "value-investing", "graham", "buffett", "margin-of-safety", "roic", "moat", "statements", "income-statement", "balance-sheet", "cash-flow", "valuation", "dcf", "metrics", "rule-of-72", "compounding", "strategy", "passive", "index", "etf", "trading", "dividend", "sector-rotation", "cycle", "gics", "cramer", "mag7", "company", "vocabulary", "market-basics", "advanced", "future", "ai", "defi", "foundation", "portfolio", "accounts", "discipline", "recall", "numeric", "bank-oversight", "markets-conduct", "top-line", "bottom-line", "earnings-multiple", "asset-cash-multiple", "investing-style", "trading-style", "consumer-tech", "infra-tech", "market-mood", "stock-feature", "trading-techniques", "market-metrics", "institutions", "concepts-metrics", "strategy-people", "investor" ], "items": [ { "id": "fact-buttonwood", "shape": "fact", "tags": [ "history", "exchange" ], "title": "The Buttonwood Agreement", "body": "American markets trace their formal birth to a single document. On May 17, 1792, twenty-four stockbrokers and merchants gathered outside 68 Wall Street in lower Manhattan and signed the Buttonwood Agreement, pledging to trade securities only among themselves at a fixed commission. It was named for the buttonwood (sycamore) tree under which they regularly met.", "illustration": { "imagePrompt": "A large sycamore tree on a colonial-era New York street, evoking the historic founding of Wall Street.", "imageSearchTerm": "buttonwood sycamore tree street", "alt": "Early American stockbrokers meeting under a tree on Wall Street", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Entrance_Buttonwood_Park_Zoo.JPG", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-buttonwood.webp" }, "factVariant": "image-heavy", "imageCaption": "24 brokers, one tree, one handshake: Wall Street was born under a sycamore in 1792.", "studyGuideAnchor": "the-buttonwood-agreement", "uid": "mmk2vxs2wxsx" }, { "id": "numeric-buttonwood-year", "shape": "numeric", "tags": [ "history", "exchange", "numeric" ], "prompt": { "modality": "text", "value": "In what year was the Buttonwood Agreement signed?" }, "value": 1792, "unit": "year", "tolerance": 0, "uid": "1scbzfapr0pjq" }, { "id": "fact-philadelphia", "shape": "fact", "tags": [ "history", "exchange" ], "title": "America's first stock exchange", "body": "Most people assume the NYSE came first, but it was actually America's second exchange. The Philadelphia Stock Exchange, originally the Board of Brokers of Philadelphia, was founded in 1790 — two years before the Buttonwood Agreement. It helped finance westward expansion and the early development of the nation's financial sector.", "illustration": { "imageSearchTerm": "Philadelphia historic exchange building", "imagePrompt": "A historic 18th-century stone building in Philadelphia that once housed an early American stock exchange.", "alt": "America's first stock exchange", "depictable": true, "credit": "Pexels · Elegant neoclassical architecture of the Merchant Exchange Building in Philadelphia.", "creditUrl": "https://www.pexels.com/photo/photo-of-the-merchant-exchange-building-in-philadelphia-united-states-14770306/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-philadelphia.webp" }, "factVariant": "image-heavy", "imageCaption": "Most people assume the NYSE came first, but it was actually America's second exchange.", "studyGuideAnchor": "america-s-first-stock-exchange", "uid": "g1w2cd1tpzj4j" }, { "id": "fact-nyse-naming", "shape": "fact", "tags": [ "history", "exchange" ], "title": "From Buttonwood to the NYSE", "body": "By 1817 the informal Buttonwood group formalized into the New York Stock & Exchange Board, renting rooms at 40 Wall Street. The name was shortened to the New York Stock Exchange (NYSE) in 1863. The first listed company was the Bank of New York. Today the NYSE remains the world's largest stock exchange by market capitalization.", "illustration": { "imageSearchTerm": "New York Stock Exchange building", "imagePrompt": "The iconic neoclassical facade of a stock exchange building with tall columns and flags.", "alt": "The New York Stock Exchange building on Wall Street", "depictable": true, "credit": "Pexels · Historic New York Stock Exchange building facade captured in a vintage style.", "creditUrl": "https://www.pexels.com/photo/new-york-stock-exchange-architectural-facade-28958001/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-nyse-naming.webp" }, "studyGuideAnchor": "from-buttonwood-to-the-nyse", "uid": "12olmtynauyuw" }, { "id": "fact-wall-street-name", "shape": "fact", "tags": [ "history", "exchange" ], "title": "Why it's called Wall Street", "body": "The term 'Wall Street' comes from an actual wall. In 1653 Dutch settlers built a wooden wall across lower Manhattan to protect the colony from British and Native American attacks. Stockbrokers later set up shop along the same fortification line, and the name stuck long after the wall was gone.", "illustration": { "imageSearchTerm": "colonial wooden wall Manhattan", "imagePrompt": "A tall wooden defensive wall along a dirt street in a 17th-century colonial settlement.", "alt": "Why it's called Wall Street", "depictable": true, "credit": "Pexels · A rustic blue wooden window on a weathered wall in Yogyakarta, showcasing vintage architectural charm.", "creditUrl": "https://www.pexels.com/photo/ancient-window-19247366/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-wall-street-name.webp" }, "factVariant": "image-heavy", "imageCaption": "There really was a wall: a Dutch barricade gave the world's money capital its name.", "studyGuideAnchor": "why-it-s-called-wall-street", "uid": "drf00bi2u5pz" }, { "id": "mcq-first-exchange", "shape": "mcq", "tags": [ "history", "exchange" ], "prompt": { "modality": "text", "value": "Which was America's first stock exchange?" }, "options": [ { "modality": "text", "value": "NYSE (1792)" }, { "modality": "text", "value": "Nasdaq (1971)" }, { "modality": "text", "value": "Philadelphia (1790)" }, { "modality": "text", "value": "Boston (1834)" } ], "correctIndex": 2, "explanation": "The Philadelphia Stock Exchange was founded in 1790, two years before the NYSE's Buttonwood Agreement.", "uid": "lxbuu31ei5b29" }, { "id": "fact-nasdaq-founding", "shape": "fact", "tags": [ "history", "nasdaq" ], "title": "The first electronic stock market", "body": "Founded on February 8, 1971, by the National Association of Securities Dealers, the Nasdaq was the world's first fully electronic stock market. Its original purpose wasn't to execute trades but to transmit real-time bid/ask prices on over 2,400 stocks to dealers nationwide, eliminating the physical trading floor entirely.", "illustration": { "imagePrompt": "A vintage 1970s computer terminal glowing with abstract green data patterns, text kept illegible.", "imageSearchTerm": "vintage 1970s computer terminal", "alt": "Electronic stock quote board glowing with price data", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Betty_Crocker_Black_Walnut_Cake_Mix_Ad.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-nasdaq-founding.webp" }, "factVariant": "image-heavy", "imageCaption": "The 1971 Nasdaq had no trading floor — just live prices beamed to dealers nationwide.", "studyGuideAnchor": "the-first-electronic-stock-market", "uid": "6qndmm1asdjk6" }, { "id": "numeric-nasdaq-year", "shape": "numeric", "tags": [ "history", "nasdaq", "numeric" ], "prompt": { "modality": "text", "value": "In what year was the Nasdaq founded?" }, "value": 1971, "unit": "year", "tolerance": 0, "uid": "1vwfe0jfy5vfj" }, { "id": "definition-nasdaq", "shape": "definition", "tags": [ "history", "nasdaq", "vocabulary" ], "term": { "modality": "text", "value": "NASDAQ" }, "definition": { "modality": "text", "value": "National Association of Securities Dealers Automated Quotations — the world's first fully electronic stock market, built to broadcast dealer quotes rather than run a trading floor." }, "uid": "gdu2a6esnkge" }, { "id": "fact-nasdaq-ipo", "shape": "fact", "tags": [ "history", "nasdaq" ], "title": "The Nasdaq invented the modern IPO", "body": "Skeptical floor traders nicknamed the Nasdaq's system the 'black box,' but its transparency narrowed bid-ask spreads and boosted volume. By 1975 it began listing venture-backed companies, effectively inventing the modern IPO. In 1998 it became the first exchange to offer online trading.", "illustration": { "imageSearchTerm": "Nasdaq tower Times Square", "imagePrompt": "A large curved digital display tower glowing with abstract colorful patterns above a busy city street at night.", "alt": "The Nasdaq invented the modern IPO", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Nasdaq_5.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-nasdaq-ipo.webp" }, "studyGuideAnchor": "the-nasdaq-invented-the-modern-ipo", "uid": "17s5ai014gx0vi" }, { "id": "fact-nasdaq-today", "shape": "fact", "tags": [ "history", "nasdaq" ], "title": "Home of the tech giants", "body": "The Nasdaq is now the second-largest exchange in the world by market capitalization. Some of the planet's most valuable companies — Apple, Microsoft, Amazon, Nvidia, and Meta — trade primarily on the Nasdaq, cementing its identity as the technology exchange.", "illustration": { "imageSearchTerm": "Home of the tech giants", "imagePrompt": "Home of the tech giants. The Nasdaq is now the second-largest exchange in the world by market capitalization. Some of the planet's most valuable companies — Apple, Microsoft, Amazon, Nvidia, and Meta — tra", "alt": "Home of the tech giants", "credit": "Pexels · Zetong Li", "creditUrl": "https://www.pexels.com/photo/an-aerial-shot-of-the-apple-park-13633184/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-nasdaq-today.webp" }, "factVariant": "image-heavy", "imageCaption": "The Nasdaq is now the second-largest exchange in the world by market capitalization.", "studyGuideAnchor": "home-of-the-tech-giants", "uid": "q3554w82t13q" }, { "id": "numeric-dotcom-peak", "shape": "numeric", "tags": [ "history", "nasdaq", "crash", "numeric" ], "prompt": { "modality": "text", "value": "In what year did the Nasdaq Composite peak before the dot-com bust?" }, "value": 2000, "unit": "year", "tolerance": 0, "uid": "1rachrb6zyydt" }, { "id": "fact-crash-1929", "shape": "fact", "tags": [ "history", "crash" ], "title": "The Crash of 1929", "body": "The Dow fell nearly 25% over two days in late October 1929, triggering the Great Depression. Fueled by speculative margin loans and overproduction, the market ultimately lost 90% of its value and took 25 years to fully recover. The disaster led directly to the creation of the SEC.", "illustration": { "imagePrompt": "A black-and-white historical scene of a large anxious crowd gathered outside a stock exchange building.", "imageSearchTerm": "1929 crowd stock exchange", "alt": "A crowd gathered on Wall Street during a market panic", "depictable": true, "credit": "Pexels · The New York Stock Exchange adorned with large American flags, bustling street life below.", "creditUrl": "https://www.pexels.com/photo/the-american-flag-hanging-outside-the-new-york-stock-exchange-6431300/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-crash-1929.webp" }, "factVariant": "image-heavy", "imageCaption": "The Dow fell nearly 25% over two days in late October 1929, triggering the Great Depression.", "studyGuideAnchor": "the-crash-of-1929", "uid": "1uc26sm1u9itdm" }, { "id": "fact-black-monday", "shape": "fact", "tags": [ "history", "crash" ], "title": "Black Monday, 1987", "body": "On October 19, 1987, the Dow Jones fell 22.6% in a single day — still the largest one-day percentage drop in market history. No fundamental economic cause was found; automated computer trading created a cascading sell-off. The event prompted circuit breakers, automatic halts that pause trading during extreme declines.", "illustration": { "imageSearchTerm": "1980s trading floor chaos", "imagePrompt": "A chaotic 1980s stock exchange trading floor with traders in colorful jackets gesturing and shouting.", "alt": "Black Monday, 1987", "depictable": true }, "factVariant": "image-heavy", "imageCaption": "-22.6% in a single day. No crisis, no warning — just computers selling into the void.", "studyGuideAnchor": "black-monday-1987", "uid": "v4pht9idgwn9" }, { "id": "fact-dotcom-bust", "shape": "fact", "tags": [ "history", "crash" ], "title": "The Dot-Com Bubble", "body": "Investors poured capital into internet companies with no profits or viable business models. The tech-heavy Nasdaq lost nearly 80% of its value between March 2000 and late 2002. Survivors like Amazon and Google emerged from the wreckage far stronger than before.", "illustration": { "imageSearchTerm": "dot-com era startup office", "imagePrompt": "A late-1990s startup office filled with beige computer monitors and young employees, early internet-era aesthetic.", "alt": "The Dot-Com Bubble", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:800px-Friggit21.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-dotcom-bust.webp" }, "studyGuideAnchor": "the-dot-com-bubble", "uid": "15lek0p1dy28mh" }, { "id": "fact-2008", "shape": "fact", "tags": [ "history", "crash" ], "title": "The 2008 Financial Crisis", "body": "Rooted in risky subprime mortgages packaged and sold globally as complex derivatives, the 2008 crisis erupted when the housing bubble collapsed. Lehman Brothers failed in the largest bankruptcy in U.S. history, and the Dow fell over 50%. The fallout produced the Dodd-Frank Act and sweeping new banking rules.", "illustration": { "imageSearchTerm": "financial firm collapse office", "imagePrompt": "Employees carrying cardboard boxes out of a large glass office tower, symbolizing a financial firm's sudden collapse.", "alt": "The 2008 Financial Crisis", "depictable": true, "credit": "Pexels · Ann H · Pexels License", "creditUrl": "https://www.pexels.com/photo/wooden-blocks-displaying-out-of-business-38285023/", "subject": "Wooden letter tiles arranged in a grid spelling 'OUT OF BUSINESS' — a staged concept photo directly illustrating business failure/closure.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-2008.webp" }, "studyGuideAnchor": "the-2008-financial-crisis", "uid": "1y32xorcfhn69" }, { "id": "fact-covid-crash", "shape": "fact", "tags": [ "history", "crash" ], "title": "The COVID-19 Crash", "body": "The fastest bear market in history: the S&P 500 fell 34% in just 33 days in early 2020. An unprecedented government stimulus response drove a shocking recovery, with the market hitting new highs in just five months.", "illustration": { "imageSearchTerm": "empty Wall Street pandemic", "imagePrompt": "An eerily empty city financial district street scene in early 2020, a stock exchange building in the background.", "alt": "The COVID-19 Crash", "depictable": true, "credit": "Wikipedia — New York Stock Exchange Building · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/New_York_Stock_Exchange_Building", "subject": "The New York Stock Exchange Building at 11 Wall Street, Manhattan: Corinthian columns, pediment sculpture, 'NEW YORK STOCK EXCHANGE' carved into the facade, flags flying — the classic, immediately recognizable real depiction of Wall Street.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-covid-crash.webp" }, "studyGuideAnchor": "the-covid-19-crash", "uid": "2xxy0g1jj22p6" }, { "id": "numeric-black-monday-drop", "shape": "numeric", "tags": [ "history", "crash", "numeric" ], "prompt": { "modality": "text", "value": "How much did the Dow fall in a single day on Black Monday 1987 (percent)?" }, "value": 22.6, "unit": "%", "tolerance": 0.5, "uid": "17ae69znm2y63" }, { "id": "numeric-covid-days", "shape": "numeric", "tags": [ "history", "crash", "numeric" ], "prompt": { "modality": "text", "value": "How many days did it take the S&P 500 to fall 34% in the 2020 COVID crash?" }, "value": 33, "unit": "days", "tolerance": 2, "uid": "1ofi1w81yvxcfm" }, { "id": "fact-sec", "shape": "fact", "tags": [ "regulation", "sec" ], "title": "The SEC: watchdog of Wall Street", "body": "The Securities and Exchange Commission was established on June 6, 1934 through the Securities Exchange Act, a direct response to the 1929 crash. Congress had found that major banks knowingly misled investors about the value of securities. The SEC requires public companies to disclose meaningful financial information so investors can decide wisely.", "illustration": { "imageSearchTerm": "government regulatory building Washington", "imagePrompt": "A stately government office building in Washington DC with classical columns.", "alt": "Seal of the U.S. Securities and Exchange Commission", "depictable": true, "credit": "Unsplash · Alejandro Barba · Unsplash License", "creditUrl": "https://unsplash.com/photos/white-concrete-building-under-clear-blue-sky-XU93D-JThyE", "subject": "A clean, wide, ground-level photo of the U.S. Capitol's front facade, dome and grand staircase against a clear blue sky, no people or text", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-sec.webp" }, "uid": "1ibzfcdeeyppp" }, { "id": "fact-sec-mission", "shape": "fact", "tags": [ "regulation", "sec" ], "title": "The SEC's three-part mission", "body": "The SEC's mission has stayed unchanged since 1934: protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. It oversees exchanges, broker-dealers, investment advisers, and mutual funds, and brings civil enforcement actions for insider trading, accounting fraud, and misrepresentation.", "illustration": { "imageSearchTerm": "financial regulation fairness concept", "imagePrompt": "An abstract classical justice scale balanced evenly, symbolizing fair oversight and regulation.", "alt": "The SEC's three-part mission", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-sec-mission.jpg", "credit": "Pexels · SpaceX", "creditUrl": "https://www.pexels.com/photo/space-galaxy-universe-rocket-23769/" }, "uid": "vz00h7a78bq3" }, { "id": "definition-sec", "shape": "definition", "tags": [ "regulation", "sec", "vocabulary" ], "term": { "modality": "text", "value": "SEC" }, "definition": { "modality": "text", "value": "Securities and Exchange Commission — the federal agency that regulates publicly traded companies and securities markets, enforcing disclosure and anti-fraud rules." }, "uid": "wwi2o6oxf872" }, { "id": "fact-securities-act-1933", "shape": "fact", "tags": [ "regulation", "sec" ], "title": "The Securities Act of 1933", "body": "Passed a year before the SEC was formed, the Securities Act of 1933 prohibited deceit and misrepresentation in the sale of securities. It established the principle that investors must receive truthful, material information before buying — the foundation of modern disclosure law.", "illustration": { "imageSearchTerm": "financial disclosure transparency concept", "imagePrompt": "A magnifying glass hovering over neatly stacked financial documents, symbolizing transparency and disclosure.", "alt": "The Securities Act of 1933", "depictable": false, "credit": "Pexels · Leeloo The First · Pexels License", "creditUrl": "https://www.pexels.com/photo/magnifying-glass-on-white-paper-with-statistical-data-5561913/", "subject": "Overhead shot of a laptop showing a currency/trading dashboard beside a clipboard of printed bank-lending and stock-price charts, with a magnifying glass held over one chart", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-securities-act-1933.webp" }, "factVariant": "image-heavy", "imageCaption": "The 1933 Securities Act made one rule law: tell investors the truth before they buy.", "uid": "1ptd053odkc5v" }, { "id": "fact-glass-steagall", "shape": "fact", "tags": [ "regulation", "sec" ], "title": "Glass-Steagall", "body": "The Glass-Steagall Act of 1933 required the separation of investment banking from commercial banking, walling off speculative activity from ordinary deposits. The rule stood for decades but was largely repealed in 1999 — a change later scrutinized after the 2008 crisis.", "illustration": { "imageSearchTerm": "banking separation concept", "imagePrompt": "An abstract classical bank building split cleanly down the middle, symbolizing separated financial functions.", "alt": "Glass-Steagall", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:AandeelLouisianaPurchase.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-glass-steagall.webp" }, "uid": "1qrybw41u5xo1w" }, { "id": "fact-finra", "shape": "fact", "tags": [ "regulation", "finra" ], "title": "FINRA: the self-regulator", "body": "FINRA (Financial Industry Regulatory Authority) is a private, not-for-profit self-regulatory organization overseeing broker-dealers, operating under SEC supervision. It writes and enforces rules for member firms, administers qualification exams, monitors billions of daily market events, and resolves disputes. Unlike the SEC, it's funded by member fees, not taxpayers.", "illustration": { "imageSearchTerm": "market oversight monitoring concept", "imagePrompt": "An abstract dashboard of countless glowing data points being monitored on a large digital screen.", "alt": "FINRA: the self-regulator", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Grand_march%C3%A9_couvert_du_Port.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-finra.webp" }, "uid": "xai2eigccihe" }, { "id": "pair-cftc", "shape": "pair", "tags": [ "markets-conduct", "regulation", "alphabet-soup" ], "sideA": { "modality": "text", "value": "CFTC" }, "sideB": { "modality": "text", "value": "Regulates derivatives, futures, swaps, and increasingly crypto" }, "uid": "1282u4o9051wk" }, { "id": "pair-fdic", "shape": "pair", "tags": [ "bank-oversight", "regulation", "alphabet-soup" ], "sideA": { "modality": "text", "value": "FDIC" }, "sideB": { "modality": "text", "value": "Insures bank deposits up to $250,000" }, "uid": "j16olt1dik8or" }, { "id": "pair-fed", "shape": "pair", "tags": [ "bank-oversight", "regulation", "alphabet-soup" ], "sideA": { "modality": "text", "value": "Federal Reserve" }, "sideB": { "modality": "text", "value": "Central bank: controls monetary policy and interest rates" }, "uid": "ecu7yx18fv2kv" }, { "id": "pair-occ", "shape": "pair", "tags": [ "bank-oversight", "regulation", "alphabet-soup" ], "sideA": { "modality": "text", "value": "OCC" }, "sideB": { "modality": "text", "value": "Regulates national banks and federal savings associations" }, "uid": "1xij5xra9xrwl" }, { "id": "pair-cfpb", "shape": "pair", "tags": [ "markets-conduct", "regulation", "alphabet-soup" ], "sideA": { "modality": "text", "value": "CFPB" }, "sideB": { "modality": "text", "value": "Enforces consumer financial protection laws" }, "uid": "g0e7199si151" }, { "id": "pair-fincen", "shape": "pair", "tags": [ "markets-conduct", "regulation", "alphabet-soup" ], "sideA": { "modality": "text", "value": "FinCEN" }, "sideB": { "modality": "text", "value": "Combats money laundering and illicit financial activity" }, "uid": "6ybw0e1yp8cv0" }, { "id": "numeric-fdic-limit", "shape": "numeric", "tags": [ "regulation", "alphabet-soup", "numeric" ], "prompt": { "modality": "text", "value": "Up to how many dollars does the FDIC insure per depositor, per bank?" }, "value": 250000, "unit": "USD", "tolerance": 0, "uid": "1crt8n7mckzmd" }, { "id": "mcq-sec-vs-finra", "shape": "mcq", "tags": [ "regulation", "sec", "finra" ], "prompt": { "modality": "text", "value": "Which statement is correct about the SEC and FINRA?" }, "options": [ { "modality": "text", "value": "FINRA oversees the SEC", "short": "FINRA oversees the SEC" }, { "modality": "text", "value": "The SEC is a federal agency; FINRA is a private self-regulatory body", "short": "SEC federal; FINRA private SRO" }, { "modality": "text", "value": "Both are federal agencies", "short": "Both are federal agencies" }, { "modality": "text", "value": "Both are private organizations", "short": "Both are private organizations" } ], "correctIndex": 1, "explanation": "The SEC is a U.S. government agency; FINRA is a private SRO operating under SEC oversight.", "uid": "x4fbp63kllr8" }, { "id": "definition-stock", "shape": "definition", "tags": [ "asset-class", "equities", "vocabulary" ], "term": { "modality": "text", "value": "Stock" }, "definition": { "modality": "text", "value": "An ownership stake in a company. Buying a share of Apple makes you a fractional owner of its assets, earnings, and future prospects. Stocks are issued via an IPO and traded on exchanges." }, "illustration": { "imagePrompt": "Clean modern photograph of a rising green stock-market candlestick chart on a screen with an upward trend line, bright financial office background, optimistic tone, shallow depth of field", "imageSearchTerm": "stock market chart screen", "alt": "A rising stock market candlestick chart on a screen", "credit": "Pexels · Alesia Kozik", "creditUrl": "https://www.pexels.com/photo/multiple-graphs-on-a-laptop-screen-6770610/", "url": "https://cdn.recurxive.com/packs/investing-201/images/definition-stock.webp" }, "uid": "1rtqdxo16653a6" }, { "id": "fact-stock-returns", "shape": "fact", "tags": [ "asset-class", "equities" ], "title": "Two ways stocks pay you", "body": "Stock returns come in two forms. Capital appreciation is when the price rises and you sell for a profit. Dividends are when the company distributes a portion of its earnings to shareholders on a regular schedule. Stocks are historically the highest-returning asset class over long periods.", "illustration": { "imageSearchTerm": "rising stock chart screen", "imagePrompt": "A glowing stock market chart trending upward on a trading screen, with a small stack of cash nearby.", "alt": "Two ways stocks pay you", "depictable": true, "credit": "Pexels · Close-up of a digital stock market chart showcasing analytics on a screen.", "creditUrl": "https://www.pexels.com/photo/stock-market-illustration-on-the-screen-7567223/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-stock-returns.webp" }, "uid": "hlm8ms1hplnj8" }, { "id": "numeric-sp500-return", "shape": "numeric", "tags": [ "asset-class", "equities", "numeric" ], "prompt": { "modality": "text", "value": "What is the S&P 500's average annual return since 1957 (percent)?" }, "value": 10.33, "unit": "%", "tolerance": 0.5, "uid": "ilrgyu1rczhr6" }, { "id": "pair-growth-stock", "shape": "pair", "tags": [ "asset-class", "equities", "stock-types" ], "sideA": { "modality": "text", "value": "Growth stock" }, "sideB": { "modality": "text", "value": "Reinvests earnings aggressively; expected to grow faster than average (e.g., Nvidia)", "short": "Reinvests earnings for rapid growth" }, "uid": "1dqj4vy1lpcv72" }, { "id": "pair-value-stock", "shape": "pair", "tags": [ "asset-class", "equities", "stock-types" ], "sideA": { "modality": "text", "value": "Value stock" }, "sideB": { "modality": "text", "value": "Trades below estimated intrinsic value; classic Graham/Buffett territory", "short": "Trades below its true worth" }, "uid": "10ta6erfvy9uj" }, { "id": "pair-cyclical-stock", "shape": "pair", "tags": [ "asset-class", "equities", "stock-types" ], "sideA": { "modality": "text", "value": "Cyclical stock" }, "sideB": { "modality": "text", "value": "Performance tied to the economic cycle (e.g., automakers, airlines)" }, "uid": "4ku70t1ig14i9" }, { "id": "pair-defensive-stock", "shape": "pair", "tags": [ "asset-class", "equities", "stock-types" ], "sideA": { "modality": "text", "value": "Defensive stock" }, "sideB": { "modality": "text", "value": "Stable regardless of the cycle (e.g., utilities, healthcare, staples)" }, "uid": "1qi43805x4x8s" }, { "id": "definition-bond", "shape": "definition", "tags": [ "asset-class", "bonds", "vocabulary" ], "term": { "modality": "text", "value": "Bond" }, "definition": { "modality": "text", "value": "A loan made by an investor to a corporation or government. The issuer pays a fixed rate of interest (the coupon) over the bond's life and returns the principal at maturity. 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When that flips — short-term bonds yielding more than long-term, an inverted yield curve — it has historically been one of the most reliable signals of an approaching recession. But it isn't infallible, and savvy investors cross-check it against other indicators.", "illustration": { "imageSearchTerm": "inverted yield curve chart", "imagePrompt": "A financial line graph showing an inverted yield curve, the line dipping down before rising again.", "alt": "The inverted yield curve", "depictable": true, "url": "https://cdn.recurxive.com/packs/investing-201/fact-yield-curve.jpg", "credit": "Pexels · Mathias Reding", "creditUrl": "https://www.pexels.com/photo/a-road-sign-on-a-barren-road-with-a-sign-that-says-stop-28271625/" }, "uid": "73pd9y1fsvhv4" }, { "id": "fact-commodities", "shape": "fact", "tags": [ "asset-class", "commodities" ], "title": "Commodities", "body": "Commodities are physical raw goods: gold, silver, oil, natural gas, copper, wheat, and livestock. Investors access them through direct ownership (physical gold), futures contracts regulated by the CFTC, or ETFs that track commodity prices, such as GLD for gold and USO for oil.", "illustration": { "imageSearchTerm": "raw commodities gold wheat", "imagePrompt": "A collection of raw commodities including gold bars, wheat stalks, and stacked barrels arranged together.", "alt": "Commodities", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Raw_classic_rolling_papers.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-commodities.webp" }, "uid": "vq0ixdyyfhqb" }, { "id": "fact-gold-hedge", "shape": "fact", "tags": [ "asset-class", "commodities" ], "title": "Gold as an inflation hedge", "body": "Gold historically serves as a store of value and an inflation hedge: when paper currency loses purchasing power, gold tends to hold or appreciate. In times of geopolitical uncertainty or currency crises, investors stage a 'flight to safety' into gold and U.S. Treasuries.", "illustration": { "imagePrompt": "A stack of gleaming gold bullion bars, symbolizing a safe store of value.", "imageSearchTerm": "gold bars bullion stack", "alt": "Stacked shining gold bullion bars", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:750-Gold_rod.JPG", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-gold-hedge.webp" }, "factVariant": "image-heavy", "imageCaption": "When paper money loses value, investors run to gold — the classic flight to safety.", "uid": "sdfdvpb7qwdx" }, { "id": "definition-blockchain", "shape": "definition", "tags": [ "asset-class", "crypto", "vocabulary" ], "term": { "modality": "text", "value": "Blockchain" }, "definition": { "modality": "text", "value": "A decentralized, public ledger maintained by a global network of computers, enabling peer-to-peer transfer of value without a central intermediary." }, "uid": "kos62q1fdhbgc" }, { "id": "fact-bitcoin", "shape": "fact", "tags": [ "asset-class", "crypto" ], "title": "Bitcoin", "body": "Bitcoin, launched in 2009 (the whitepaper describing it appeared in 2008), was the first widely adopted cryptocurrency, designed to transfer value without traditional financial intermediaries. It has a fixed supply capped at 21 million coins — a hard scarcity that distinguishes it from government-issued currency.", "illustration": { "imagePrompt": "A physical golden Bitcoin coin resting on a dark reflective surface with soft lighting.", "imageSearchTerm": "Bitcoin cryptocurrency coin", "alt": "A golden Bitcoin coin on a glowing circuit board", "depictable": true, "credit": "Pexels · Detailed shot of a Bitcoin coin with a digital texture highlighting its cryptocurrency design.", "creditUrl": "https://www.pexels.com/photo/close-up-shot-of-coin-8185624/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-bitcoin.webp" }, "factVariant": "image-heavy", "imageCaption": "21 million coins. Ever. A hard cap no government currency can match.", "uid": "jmfhwk11cnfke" }, { "id": "fact-ethereum", "shape": "fact", "tags": [ "asset-class", "crypto" ], "title": "Ethereum and smart contracts", "body": "Ethereum, the second-largest cryptocurrency by market cap, introduced smart contracts: self-executing code that powers decentralized applications, DeFi protocols, and NFTs. After 'The Merge' in 2022, Ethereum switched to a Proof-of-Stake consensus mechanism.", "illustration": { "imageSearchTerm": "Ethereum cryptocurrency coin", "imagePrompt": "A physical silver coin with a diamond-faceted emblem, resting on a dark reflective surface.", "alt": "Ethereum and smart contracts", "depictable": true, "credit": "Pexels · Close-up of an Ethereum cryptocurrency coin with a minimalist design on a reflective surface.", "creditUrl": "https://www.pexels.com/photo/an-ethereum-coin-14911391/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-ethereum.webp" }, "uid": "w1iw7ve99ulp" }, { "id": "pair-hodl", "shape": "pair", "tags": [ "asset-class", "crypto" ], "sideA": { "modality": "text", "value": "HODLing" }, "sideB": { "modality": "text", "value": "Buying and holding crypto through volatility for long-term gains" }, "uid": "jpaqlkeabi62" }, { "id": "definition-reit", "shape": "definition", "tags": [ "asset-class", "real-estate", "vocabulary" ], "term": { "modality": "text", "value": "REIT" }, "definition": { "modality": "text", "value": "Real Estate Investment Trust — a publicly traded company that owns income-producing real estate and is required by law to distribute at least 90% of taxable income as dividends." }, "uid": "1youudcmz02de" }, { "id": "fact-crypto-risk", "shape": "fact", "tags": [ "asset-class", "crypto" ], "title": "Crypto's risk warning", "body": "Cryptocurrency is not insured by the FDIC, SIPC, or any government agency. Exchanges can be hacked, and transactions are irreversible — if you lose your keys, you lose your coins. The CFTC has particular jurisdiction over crypto derivatives and futures.", "illustration": { "imageSearchTerm": "digital security risk concept", "imagePrompt": "An abstract broken padlock overlaid on a glowing digital coin, symbolizing cryptocurrency security risk.", "alt": "Crypto's risk warning", "credit": "Pexels · RDNE Stock project", "creditUrl": "https://www.pexels.com/photo/broken-bitcoin-and-a-calculator-next-to-sticky-notes-with-sad-truth-8369667/", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-crypto-risk.jpg" }, "factVariant": "image-heavy", "imageCaption": "Cryptocurrency is not insured by the FDIC, SIPC, or any government agency.", "uid": "c0zzk81jisn8w" }, { "id": "fact-graham", "shape": "fact", "tags": [ "value-investing", "graham" ], "title": "Benjamin Graham, father of value investing", "body": "Benjamin Graham wrote two foundational texts: Security Analysis (1934, with David Dodd) and The Intelligent Investor (1949). His core insight was deceptively simple — a stock is not a ticker symbol but a fractional ownership stake in a real business, and the market is an irrational entity that quotes prices sometimes far too high and sometimes far too low.", "illustration": { "imagePrompt": "A vintage black-and-white portrait of a distinguished mid-century financial economist in a suit.", "imageSearchTerm": "Benjamin Graham investor portrait", "alt": "A worn investing book open on a desk with a pen", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Benjamin_Pine.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-graham.webp" }, "factVariant": "image-heavy", "imageCaption": "Benjamin Graham wrote two foundational texts: Security Analysis (1934, with David Dodd) and The Intelligent Investor (1949).", "uid": "p5hs731nu2cvt" }, { "id": "definition-mr-market", "shape": "definition", "tags": [ "value-investing", "graham", "vocabulary" ], "term": { "modality": "text", "value": "Mr. Market" }, "definition": { "modality": "text", "value": "Graham's metaphor for the stock market: an irrational business partner who offers you a price every day — sometimes euphorically high, sometimes despairingly low. Treat his moods as opportunities, not verdicts." }, "uid": "1r8vpjgqzs8j0" }, { "id": "definition-intrinsic-value", "shape": "definition", "tags": [ "value-investing", "graham", "vocabulary" ], "term": { "modality": "text", "value": "Intrinsic value" }, "definition": { "modality": "text", "value": "What a company is actually worth based on its business fundamentals, independent of its current market price. Estimating it is the central task of value investing." }, "uid": "1mvfrz4jyafcc" }, { "id": "fact-grahams-pillars", "shape": "fact", "tags": [ "value-investing", "graham" ], "title": "Graham's three pillars", "body": "Graham's framework rests on three ideas. First, intrinsic value: calculate what a company is truly worth. Second, margin of safety: only buy when the price is well below that value. Third, Mr. Market: treat price swings as opportunities, not signals about your thesis.", "illustration": { "imageSearchTerm": "investing framework pillars concept", "imagePrompt": "Three classical stone pillars supporting a glowing balanced structure, symbolizing a solid framework.", "alt": "Graham's three pillars", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Ernest_Peixotto,_Singer_Building,_New_York,_1909.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-grahams-pillars.webp" }, "factVariant": "image-heavy", "imageCaption": "Graham's framework rests on three ideas.", "uid": "1gkqe74dk9vyg" }, { "id": "fact-buffett", "shape": "fact", "tags": [ "value-investing", "buffett" ], "title": "Warren Buffett builds on Graham", "body": "Buffett, Graham's most famous student, began as a pure bargain hunter buying stocks below net asset value. Guided by partner Charlie Munger, he evolved toward 'a wonderful company at a fair price rather than a fair company at a wonderful price.' Berkshire Hathaway grew from a failing textile mill into a global conglomerate.", "illustration": { "imageSearchTerm": "Warren Buffett portrait", "imagePrompt": "A candid portrait of an elderly, friendly-looking billionaire investor in a business suit, warm smile.", "alt": "Warren Buffett builds on Graham", "depictable": true, "credit": "Wikipedia — Warren Buffett · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Warren_Buffett", "subject": "Close head-and-shoulders portrait of elderly Warren Buffett: silver hair, wire-rim glasses, dark pinstripe suit, red patterned tie, looking at camera. Wikipedia's lead image for the 'Warren Buffett' article (cropped still from the 2015 SelectUSA Investment Summit).", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-buffett.webp" }, "factVariant": "image-heavy", "imageCaption": "Buffett, Graham's most famous student, began as a pure bargain hunter buying stocks below net asset value.", "uid": "13ovuygwsp7us" }, { "id": "fact-buffett-young", "shape": "fact", "tags": [ "value-investing", "buffett" ], "title": "A prodigy in Omaha", "body": "Buffett reportedly read every investing book in the Omaha public library by age twelve. He made his first stock purchase at age eleven — three shares of Cities Service Preferred at $38 per share — beginning a lifetime of disciplined, buy-and-hold investing.", "illustration": { "imageSearchTerm": "child reading library books", "imagePrompt": "A young boy sitting cross-legged in a grand public library, surrounded by tall shelves of books, absorbed in reading.", "alt": "Investor Warren Buffett", "credit": "Tim Pierce (Openverse) · by 2.0", "creditUrl": "https://www.flickr.com/photos/48439369@N00/2100913578", "depictable": true, "subject": "A young boy in a red jacket sitting on a bookstore aisle floor, absorbed in reading a picture book, surrounded by tall shelves of books; a clean, unambiguous photo of a child reading among books", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-buffett-young.webp" }, "factVariant": "image-heavy", "imageCaption": "He bought his first stock at age 11 and read every investing book in the library by 12.", "curatedDistractors": [ "GEICO", "American Express", "Coca-Cola" ], "uid": "ibch231qcifs7" }, { "id": "definition-margin-of-safety", "shape": "definition", "tags": [ "value-investing", "margin-of-safety", "vocabulary" ], "term": { "modality": "text", "value": "Margin of safety" }, "definition": { "modality": "text", "value": "The difference between a stock's intrinsic value and its current market price. The wider the gap, the more room you have to be wrong and still profit — your buffer against estimation error." }, "uid": "1d7ix9v1jpkslb" }, { "id": "fact-margin-example", "shape": "fact", "tags": [ "value-investing", "margin-of-safety" ], "title": "Margin of safety in practice", "body": "If you calculate a company is worth $100 per share but it trades at $50, you have a 50% margin of safety — you're paying half of what you believe the business is worth. Even if your estimate is off and it's really worth only $70, you still profit. Most disciplined value investors demand a margin of at least 30% to 50%; higher uncertainty calls for a wider buffer.", "illustration": { "imageSearchTerm": "financial safety buffer concept", "imagePrompt": "A large cushioned buffer resting beneath a tall stack of coins, symbolizing financial protection.", "alt": "Margin of safety in practice", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Bvmfinancial.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-margin-example.webp" }, "factVariant": "image-heavy", "imageCaption": "If you calculate a company is worth $100 per share but it trades at $50, you have a 50% margin of safety.", "uid": "1n09n7o1qvcv7e" }, { "id": "numeric-margin-min", "shape": "numeric", "tags": [ "value-investing", "margin-of-safety", "numeric" ], "prompt": { "modality": "text", "value": "What minimum margin of safety (percent) do disciplined value investors typically demand?" }, "value": 30, "unit": "%", "tolerance": 5, "uid": "l748jt10wmrh7" }, { "id": "definition-roic", "shape": "definition", "tags": [ "value-investing", "roic", "vocabulary" ], "term": { "modality": "text", "value": "ROIC" }, "definition": { "modality": "text", "value": "Return on Invested Capital = NOPAT (net operating profit after tax) divided by invested capital. It measures how efficiently a company turns capital into profit — a favorite quality metric of investors like Michael Mauboussin." }, "uid": "1omlf6x9zaahz" }, { "id": "fact-roic-thresholds", "shape": "fact", "tags": [ "value-investing", "roic" ], "title": "What makes a good ROIC", "body": "A ROIC above 10% is generally considered acceptable; above 15% is preferable. Companies with consistently high ROIC tend to have durable competitive advantages — pricing power, switching costs, network effects, or cost advantages — that let them compound shareholder value over time.", "illustration": { "imageSearchTerm": "capital return efficiency concept", "imagePrompt": "An abstract upward-pointing arrow made of interlocking gears, symbolizing efficient return on invested capital.", "alt": "What makes a good ROIC", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-roic-thresholds.jpg", "credit": "Pexels · Monstera Production", "creditUrl": "https://www.pexels.com/photo/cutout-paper-composition-of-arrow-and-coins-on-purple-background-5849588/" }, "uid": "5dmwgj7uz82b" }, { "id": "numeric-roic-good", "shape": "numeric", "tags": [ "value-investing", "roic", "numeric" ], "prompt": { "modality": "text", "value": "Above what ROIC (percent) is considered preferable for a quality business?" }, "value": 15, "unit": "%", "tolerance": 0, "uid": "1g2vyyb1nn4got" }, { "id": "definition-moat", "shape": "definition", "tags": [ "value-investing", "moat", "vocabulary" ], "term": { "modality": "text", "value": "Economic moat" }, "definition": { "modality": "text", "value": "Warren Buffett's term for a durable competitive advantage that protects a company's market position — network effects, switching costs, cost advantages, or intangible assets like brand." }, "uid": "n7vy3y1crzh72" }, { "id": "fact-income-statement", "shape": "fact", "tags": [ "statements", "income-statement" ], "title": "The income statement", "body": "The income statement (or profit & loss) shows how much a company earned and spent over a period. It flows from revenue (the top line) down through cost of goods sold, gross profit, operating expenses, EBIT, and finally net income (the bottom line), ending with earnings per share.", "illustration": { "imagePrompt": "A close-up of a printed financial report on a desk, rows of figures softly out of focus, a pen resting beside it.", "imageSearchTerm": "financial statement report document", "alt": "A printed financial statement with a calculator and pen", "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Fiinu.png", "depictable": true, "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-income-statement.webp" }, "factVariant": "image-heavy", "imageCaption": "The income statement (or profit & loss) shows how much a company earned and spent over a period.", "uid": "19hu6w9ydf0jr" }, { "id": "pair-revenue", "shape": "pair", "tags": [ "top-line", "statements", "income-statement" ], "sideA": { "modality": "text", "value": "Revenue (top line)" }, "sideB": { "modality": "text", "value": "Total sales generated over a period" }, "uid": "zwo7dz1gsuv7n" }, { "id": "pair-net-income", "shape": "pair", "tags": [ "bottom-line", "statements", "income-statement" ], "sideA": { "modality": "text", "value": "Net income (bottom line)" }, "sideB": { "modality": "text", "value": "What's left after all expenses, interest, and taxes" }, "uid": "1q9ldtdl52ith" }, { "id": "definition-ebitda", "shape": "definition", "tags": [ "bottom-line", "statements", "income-statement", "vocabulary" ], "term": { "modality": "text", "value": "EBITDA" }, "definition": { "modality": "text", "value": "Earnings Before Interest, Taxes, Depreciation, and Amortization — operating income plus depreciation and amortization, used as a rough proxy for cash generation." }, "curatedDistractors": [ "EPS", "ROIC", "WACC" ], "uid": "1oz1wuh1lkucxx" }, { "id": "pair-eps", "shape": "pair", "tags": [ "bottom-line", "statements", "income-statement" ], "sideA": { "modality": "text", "value": "EPS (earnings per share)" }, "sideB": { "modality": "text", "value": "Net income divided by shares outstanding" }, "uid": "1yflyeq1amlc4y" }, { "id": "definition-gross-margin", "shape": "definition", "tags": [ "top-line", "statements", "income-statement", "vocabulary" ], "term": { "modality": "text", "value": "Gross margin" }, "definition": { "modality": "text", "value": "Gross profit divided by revenue. Software companies often exceed 70%; hardware companies typically run 30–50%. A high, stable gross margin signals pricing power." }, "curatedDistractors": [ "Operating margin", "Net margin", "Return on equity" ], "uid": "tfwh261b4e44o" }, { "id": "pair-cogs", "shape": "pair", "tags": [ "top-line", "statements", "income-statement" ], "sideA": { "modality": "text", "value": "COGS" }, "sideB": { "modality": "text", "value": "Cost of Goods Sold — the direct costs of producing revenue" }, "uid": "1lwb79a142kpme" }, { "id": "fact-balance-sheet", "shape": "fact", "tags": [ "statements", "balance-sheet" ], "title": "The balance sheet", "body": "The balance sheet is a snapshot of a company's financial position at a single moment. It lists what the company owns (assets), what it owes (liabilities), and what's left for owners (shareholders' equity). Always check the footnotes for off-balance-sheet items and dilution from stock options.", "illustration": { "imageSearchTerm": "balance scale coins finance", "imagePrompt": "A classical balance scale with gleaming coins piled evenly on both sides.", "alt": "The balance sheet", "depictable": false, "credit": "Pexels · Close-up of an antique balance scale filled with vintage coins, creating a nostalgic and historical feel.", "creditUrl": "https://www.pexels.com/photo/a-balance-scale-with-coins-7707125/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-balance-sheet.webp" }, "uid": "19jm46rbb1mgl" }, { "id": "definition-balance-equation", "shape": "definition", "tags": [ "statements", "balance-sheet", "vocabulary" ], "term": { "modality": "text", "value": "The accounting equation" }, "definition": { "modality": "text", "value": "Assets = Liabilities + Shareholders' Equity. This identity always holds — every asset is financed either by debt or by owners' capital." }, "uid": "1a5urjsajmhsc" }, { "id": "pair-assets", "shape": "pair", "tags": [ "statements", "balance-sheet" ], "sideA": { "modality": "text", "value": "Assets" }, "sideB": { "modality": "text", "value": "What the company owns: cash, receivables, inventory, property, goodwill", "short": "Company-owned resources and properties" }, "uid": "py4yga1svwkz4" }, { "id": "pair-liabilities", "shape": "pair", "tags": [ "statements", "balance-sheet" ], "sideA": { "modality": "text", "value": "Liabilities" }, "sideB": { "modality": "text", "value": "What the company owes: payables, short-term debt, long-term debt" }, "uid": "11vza6218e5044" }, { "id": "definition-current-ratio", "shape": "definition", "tags": [ "statements", "balance-sheet", "vocabulary" ], "term": { "modality": "text", "value": "Current ratio" }, "definition": { "modality": "text", "value": "Current assets divided by current liabilities — a measure of short-term liquidity. Above 1.0 is generally healthy, meaning the company can cover near-term obligations." }, "uid": "1e0ijxng8x48t" }, { "id": "definition-debt-to-equity", "shape": "definition", "tags": [ "statements", "balance-sheet", "vocabulary" ], "term": { "modality": "text", "value": "Debt-to-equity" }, "definition": { "modality": "text", "value": "Total liabilities divided by total equity — a measure of financial leverage and risk. Higher ratios mean more debt financing and greater vulnerability in downturns." }, "uid": "1ct208msiaq4u" }, { "id": "fact-balance-footnotes", "shape": "fact", "tags": [ "statements", "balance-sheet" ], "title": "Read the footnotes", "body": "Savvy investors never skip the footnotes. That's where off-balance-sheet arrangements, large stock-option grants that dilute EPS, and the difference between basic and diluted earnings per share are disclosed. A clean-looking balance sheet can hide important detail.", "illustration": { "imageSearchTerm": "magnifying glass financial document", "imagePrompt": "A magnifying glass held over small printed footnotes at the bottom of a financial report page.", "alt": "Read the footnotes", "depictable": true, "credit": "Pexels · Financial documents and charts with a magnifying glass, symbolizing analysis and data review.", "creditUrl": "https://www.pexels.com/photo/magnifying-glass-on-white-paper-6120168/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-balance-footnotes.webp" }, "factVariant": "image-heavy", "imageCaption": "Savvy investors never skip the footnotes.", "uid": "772ob2635x60" }, { "id": "fact-cash-flow-statement", "shape": "fact", "tags": [ "statements", "cash-flow" ], "title": "The cash flow statement", "body": "The cash flow statement reveals the actual cash moving through a business — often the most reliable health indicator, since accounting rules allow many non-cash adjustments on the income statement. It has three sections: operating, investing, and financing cash flow.", "illustration": { "imageSearchTerm": "cash flow report document", "imagePrompt": "A printed financial report on a wooden desk beside a calculator, figures left softly out of focus.", "alt": "The cash flow statement", "depictable": true, "credit": "Pexels · RDNE Stock project · Pexels License", "creditUrl": "https://www.pexels.com/photo/papers-on-the-table-7821554/", "subject": "A printed page headed 'Find Aid for the Aged, Inc. and Affiliates — Consolidated Statements of Cash Flows', section 'Cash flows from operating activities' with reconciliation line items and Year Ended December 31 2018/2017 columns, a black pen resting on it and a second numeric page with a red highl", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-cash-flow-statement.webp" }, "uid": "13t1qbw26wy3k" }, { "id": "pair-ocf", "shape": "pair", "tags": [ "statements", "cash-flow" ], "sideA": { "modality": "text", "value": "Operating cash flow" }, "sideB": { "modality": "text", "value": "Cash generated by core business operations" }, "uid": "fikpfw1qww9le" }, { "id": "pair-investing-cf", "shape": "pair", "tags": [ "statements", "cash-flow" ], "sideA": { "modality": "text", "value": "Investing cash flow" }, "sideB": { "modality": "text", "value": "Cash used for capital expenditures, acquisitions, or investments (usually negative)", "short": "Cash for investments and capital spending" }, "uid": "h6w10h1j5e69v" }, { "id": "pair-financing-cf", "shape": "pair", "tags": [ "statements", "cash-flow" ], "sideA": { "modality": "text", "value": "Financing cash flow" }, "sideB": { "modality": "text", "value": "Cash from issuing/repaying debt, buybacks, or dividends" }, "uid": "2cei6v7g03c9" }, { "id": "definition-fcf", "shape": "definition", "tags": [ "statements", "cash-flow", "vocabulary" ], "term": { "modality": "text", "value": "Free cash flow (FCF)" }, "definition": { "modality": "text", "value": "Operating cash flow minus capital expenditures — the cash a company generates after maintaining and growing its assets. It's the most important number in valuation." }, "uid": "1tmtzgbly53yt" }, { "id": "fact-fcf-importance", "shape": "fact", "tags": [ "statements", "cash-flow" ], "title": "Why FCF is king", "body": "Free cash flow is the cash available to return to shareholders through buybacks or dividends, or to reinvest for growth. Healthy companies generate more operating cash flow than reported net income — a sign that accounting profit is backed by real cash.", "illustration": { "imageSearchTerm": "abundant cash flow concept", "imagePrompt": "An abstract overflowing reservoir of bright golden light, symbolizing abundant free cash flow.", "alt": "Why FCF is king", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:%E5%A4%9A%E5%AE%9D%E5%A1%94%E7%A2%91.%E5%94%90.%E9%A2%9C%E7%9C%9F%E5%8D%BF.%E4%B9%A6.%E6%B8%85%E4%B8%AD%E6%99%9A%E6%9C%9F%E6%8B%93%E7%89%87.%E4%B8%9C%E4%BA%AC%E5%9B%BD%E7%AB%8B%E5%8D%9A%E7%89%A9%E9%A6%86%E8%97%8F.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/fact-fcf-importance.jpg" }, "uid": "1bdy2io1x7ac9s" }, { "id": "fact-dcf", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "The DCF: gold standard of valuation", "body": "A Discounted Cash Flow analysis is considered the gold standard of equity valuation. Its principle is simple: an investment is worth the sum of all the future cash flows it will produce, with each cash flow discounted back to its present value — because a dollar today is worth more than a dollar tomorrow.", "illustration": { "imageSearchTerm": "present value discounting concept", "imagePrompt": "A timeline of glowing coins shrinking in size as they recede into the distance, symbolizing discounted future value.", "alt": "Financial analysis with a calculator and charts", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-dcf.webp", "credit": "Pexels · File:Hiện Tại .png", "creditUrl": "https://commons.wikimedia.org/wiki/File:Hi%E1%BB%87n_T%E1%BA%A1i_.png" }, "uid": "hu9tklga7gn1" }, { "id": "definition-time-value", "shape": "definition", "tags": [ "valuation", "dcf", "vocabulary" ], "term": { "modality": "text", "value": "Time value of money" }, "definition": { "modality": "text", "value": "The principle that a dollar today is worth more than a dollar in the future, because today's dollar can be invested to earn returns in the meantime. It's the reason future cash flows must be discounted." }, "uid": "a6cp8qz9dcyk" }, { "id": "definition-wacc", "shape": "definition", "tags": [ "valuation", "dcf", "vocabulary" ], "term": { "modality": "text", "value": "WACC" }, "definition": { "modality": "text", "value": "Weighted Average Cost of Capital — the blended cost of all capital, equity and debt, used to fund a business. It's the discount rate in a DCF: a higher WACC lowers the present value of future cash flows." }, "uid": "1p63mgalbzny8" }, { "id": "definition-terminal-value", "shape": "definition", "tags": [ "valuation", "dcf", "vocabulary" ], "term": { "modality": "text", "value": "Terminal value" }, "definition": { "modality": "text", "value": "The value of all a company's cash flows beyond the explicit projection period, capturing the bulk of a DCF's output. It's estimated with the Gordon Growth model or an exit multiple." }, "uid": "lxorcoau9h42" }, { "id": "fact-dcf-formula", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "The DCF formula", "body": "The DCF sums each year's free cash flow divided by (1 + r) raised to that year's power, plus the discounted terminal value. Here r is the discount rate (typically WACC), and n is the number of years projected. The further out a cash flow, the more the discounting shrinks it.", "illustration": { "imageSearchTerm": "valuation calculation concept", "imagePrompt": "An abstract network of glowing interconnected nodes and flowing lines suggesting a complex financial calculation.", "alt": "The DCF formula", "credit": "Pexels · StockRadars Co.,", "creditUrl": "https://www.pexels.com/photo/smartphone-displaying-stock-market-chart-28682348/", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-dcf-formula.jpg" }, "uid": "p2yi065dt0le" }, { "id": "numeric-wacc-range", "shape": "numeric", "tags": [ "valuation", "dcf", "numeric" ], "prompt": { "modality": "text", "value": "WACC for established U.S. companies typically falls around what percent?" }, "value": 10, "unit": "%", "tolerance": 2, "uid": "17sfcc1ue5wr0" }, { "id": "fact-dcf-step1", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "Step 1: project free cash flows", "body": "Start with the most recent trailing-twelve-months FCF and project forward 5–10 years using estimates for revenue growth, margins, and capex. Be conservative — even small changes in growth assumptions dramatically swing the output.", "illustration": { "imageSearchTerm": "future forecast projection concept", "imagePrompt": "A road stretching into the distance with faint glowing markers, symbolizing forecasting years ahead.", "alt": "Step 1: project free cash flows", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:AW_right.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-dcf-step1.webp" }, "uid": "1bd1i3r1kup0of" }, { "id": "fact-dcf-wacc-step", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "Step 2: choose a discount rate", "body": "Discount the projected cash flows using WACC, the blended cost of equity and debt. A higher WACC reduces the present value of future cash flows; a lower one increases it. WACC typically ranges from 8–12% for established U.S. companies.", "illustration": { "imageSearchTerm": "discount rate dial concept", "imagePrompt": "An abstract glowing dial or gauge, with light beams shrinking smaller as the dial turns higher.", "alt": "Step 2: choose a discount rate", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Wiki_dai_yoshihara_profile.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-dcf-wacc-step.webp" }, "uid": "y865wu1957zvk" }, { "id": "fact-gordon-growth", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "Terminal value: Gordon Growth", "body": "The Gordon Growth model sets terminal value as the final year's FCF grown by a long-term rate g, divided by (r − g). It assumes the company grows at a modest, perpetual rate forever — usually near long-run GDP growth, around 2–3%.", "illustration": { "imageSearchTerm": "perpetual growth spiral concept", "imagePrompt": "A gently upward-sloping spiral of light extending infinitely toward the horizon, symbolizing perpetual steady growth.", "alt": "Terminal value: Gordon Growth", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Rosa_Single_Perpetual_2019-06-04_5273.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-gordon-growth.webp" }, "uid": "1gsp07ja9af8j" }, { "id": "fact-exit-multiple", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "Terminal value: exit multiple", "body": "The exit-multiple method estimates terminal value by multiplying the final year's EBITDA by an appropriate industry EV/EBITDA multiple. It grounds the terminal value in what comparable businesses actually sell for, rather than a perpetual growth assumption.", "illustration": { "imageSearchTerm": "comparable business valuation concept", "imagePrompt": "Several glowing building silhouettes of similar size compared side by side, symbolizing comparable business valuation.", "alt": "Terminal value: exit multiple", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-exit-multiple.jpg", "credit": "Pexels · Monstera Production", "creditUrl": "https://www.pexels.com/photo/cutout-paper-composition-with-graphic-and-hand-with-bills-5849592/" }, "uid": "prjd3ea9s8aq" }, { "id": "fact-ev-to-equity", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "From enterprise value to per-share value", "body": "Sum the present values of the projected cash flows plus the terminal value to get enterprise value. Subtract net debt (total debt minus cash) to reach equity value, then divide by shares outstanding for intrinsic value per share — the number you compare to the market price.", "illustration": { "imageSearchTerm": "value calculation chain concept", "imagePrompt": "An abstract flowchart of glowing shapes narrowing step by step from a large sphere down to a single point of light.", "alt": "From enterprise value to per-share value", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:A_worker_enters_a_lumberyard_in_New_Dorp,_Staten_Island.JPG", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-ev-to-equity.webp" }, "uid": "lpmf9frt69h1" }, { "id": "definition-enterprise-value", "shape": "definition", "tags": [ "valuation", "vocabulary" ], "term": { "modality": "text", "value": "Enterprise value (EV)" }, "definition": { "modality": "text", "value": "Market capitalization plus debt minus cash — the total cost to acquire a company outright. It captures the whole business, regardless of how it's financed." }, "uid": "1113hkjwg3pzh" }, { "id": "fact-dcf-garbage", "shape": "fact", "tags": [ "valuation", "dcf" ], "title": "Garbage in, garbage out", "body": "The DCF's greatest weakness is its sensitivity to assumptions. Slightly optimistic inputs compound across ten years and can justify almost any valuation — the 'a DCF can justify anything' critique is valid. Always stress-test with bear, base, and bull scenarios.", "illustration": { "imageSearchTerm": "forecast scenario range concept", "imagePrompt": "A single glowing path splitting into three diverging branches of different brightness, symbolizing a range of possible outcomes.", "alt": "Garbage in, garbage out", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-dcf-garbage.jpg", "credit": "Pexels · Yori H", "creditUrl": "https://www.pexels.com/photo/garbage-bins-on-city-street-19775307/" }, "uid": "1bvu6o11v2xuip" }, { "id": "definition-pe", "shape": "definition", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "term": { "modality": "text", "value": "P/E ratio" }, "definition": { "modality": "text", "value": "Price-to-Earnings = stock price divided by earnings per share. It tells you how much investors pay for each dollar of annual profit. A P/E of 20 means $20 paid per $1 of earnings." }, "uid": "11k6x61xhtn0z" }, { "id": "definition-ev-ebitda", "shape": "definition", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "term": { "modality": "text", "value": "EV/EBITDA" }, "definition": { "modality": "text", "value": "Enterprise value divided by EBITDA. Preferred over P/E for comparing companies with different capital structures because it looks at the whole enterprise relative to operating cash generation. It's the standard metric in M&A and LBO analysis." }, "uid": "176qr4i126cums" }, { "id": "definition-ps", "shape": "definition", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "term": { "modality": "text", "value": "P/S ratio" }, "definition": { "modality": "text", "value": "Price-to-Sales = market cap divided by annual revenue. Used when companies are pre-profitable or when earnings are temporarily depressed by heavy reinvestment." }, "uid": "k9cs7cjxlo5w" }, { "id": "definition-peg", "shape": "definition", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "term": { "modality": "text", "value": "PEG ratio" }, "definition": { "modality": "text", "value": "Price/Earnings-to-Growth = P/E divided by the earnings growth rate. A PEG below 1.0 is often considered undervalued. It normalizes P/E for growth, making fast and slow growers comparable." }, "uid": "j6g22h1jci4r" }, { "id": "definition-fcf-yield", "shape": "definition", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "term": { "modality": "text", "value": "FCF yield" }, "definition": { "modality": "text", "value": "Free cash flow divided by market cap — the inverse of a price-to-FCF ratio. A high reading (8–12%+) suggests a stock is cheap relative to the cash it generates." }, "uid": "12jy6xbwt9px7" }, { "id": "definition-pb", "shape": "definition", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "term": { "modality": "text", "value": "P/B ratio" }, "definition": { "modality": "text", "value": "Price-to-Book = stock price divided by book value per share. Most useful for banks and asset-heavy industries, where balance-sheet value closely tracks earning power." }, "uid": "waumxlzj5yxx" }, { "id": "fact-pe-context", "shape": "fact", "tags": [ "valuation", "metrics" ], "title": "Context is everything", "body": "Great investors don't rely on a single number — they build a mosaic. A 'high' P/E for a stagnant utility means something very different from a 'high' P/E for a fast-growing cloud business. Historically the S&P 500 averages a P/E of roughly 15–20x; growth tech often trades at 30–60x or higher.", "illustration": { "imageSearchTerm": "valuation mosaic data concept", "imagePrompt": "An abstract mosaic of many small glowing tiles of varying size forming a larger coherent picture.", "alt": "Context is everything", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Coalpits,_County_Galway_in_Griffith%27s_Valuation.png", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-pe-context.webp" }, "uid": "rcm185gzfm3b" }, { "id": "numeric-sp500-pe", "shape": "numeric", "tags": [ "valuation", "metrics", "numeric" ], "prompt": { "modality": "text", "value": "The S&P 500's historical average P/E ratio is roughly what?" }, "value": 17, "unit": "x", "tolerance": 3, "uid": "1aagbz8onp92a" }, { "id": "pair-ev-ebitda-use", "shape": "pair", "tags": [ "valuation", "metrics" ], "sideA": { "modality": "text", "value": "EV/EBITDA" }, "sideB": { "modality": "text", "value": "Best for M&A and comparing companies with different capital structures" }, "uid": "15dotwzv5yajr" }, { "id": "pair-ps-use", "shape": "pair", "tags": [ "valuation", "metrics" ], "sideA": { "modality": "text", "value": "Price-to-Sales" }, "sideB": { "modality": "text", "value": "Best for pre-profit, high-growth companies" }, "uid": "16858tgmu2po0" }, { "id": "pair-peg-use", "shape": "pair", "tags": [ "valuation", "metrics" ], "sideA": { "modality": "text", "value": "PEG below 1.0" }, "sideB": { "modality": "text", "value": "Signals a stock may be undervalued relative to its growth" }, "uid": "1ce80b1j31oe1" }, { "id": "pair-pb-use", "shape": "pair", "tags": [ "valuation", "metrics" ], "sideA": { "modality": "text", "value": "Price-to-Book" }, "sideB": { "modality": "text", "value": "Best for banks and asset-heavy industries" }, "uid": "vmh0dkwu3gwo" }, { "id": "mcq-metric-choice", "shape": "mcq", "tags": [ "valuation", "metrics" ], "prompt": { "modality": "text", "value": "Which metric is most useful for a fast-growing company that isn't yet profitable?" }, "options": [ { "modality": "text", "value": "Dividend yield" }, { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "Price-to-Earnings (P/E)" }, { "modality": "text", "value": "Price-to-Sales (P/S)" } ], "correctIndex": 3, "explanation": "With no earnings, P/E and PEG break down; P/S uses revenue instead, making it the standard for pre-profit growth companies.", "uid": "vxj7291txvkov" }, { "id": "fact-rule-72", "shape": "fact", "tags": [ "rule-of-72", "compounding" ], "title": "The Rule of 72", "body": "The Rule of 72 is one of investing's most useful mental shortcuts. It estimates how long an investment takes to double: just divide 72 by the annual return percentage. At 10%, money doubles in about 7.2 years. It works best for rates between 6% and 10% and gets less accurate at extremes.", "illustration": { "imagePrompt": "An abstract exponential growth curve rising steeply on a glowing graph, symbolizing money doubling over time.", "imageSearchTerm": "exponential growth curve concept", "alt": "A hand drawing an exponential growth curve on glass", "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Exponential_Parameter_Space.png", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-rule-72.webp" }, "factVariant": "image-heavy", "imageCaption": "Want to know when your money doubles? Divide 72 by your return. That's the whole trick.", "uid": "jrbdju13mvwhu" }, { "id": "numeric-rule72-10", "shape": "numeric", "tags": [ "rule-of-72", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years does it take to double your money at a 10% annual return?" }, "value": 7.2, "unit": "years", "tolerance": 0.3, "uid": "xr2k021ggi7cq" }, { "id": "numeric-rule72-12", "shape": "numeric", "tags": [ "rule-of-72", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years to double your money at a 12% annual return?" }, "value": 6, "unit": "years", "tolerance": 0.3, "uid": "nmocziwn0f7k" }, { "id": "numeric-rule72-8", "shape": "numeric", "tags": [ "rule-of-72", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years to double your money at an 8% annual return?" }, "value": 9, "unit": "years", "tolerance": 0.3, "uid": "tmcxue1cnvf7s" }, { "id": "numeric-rule72-4", "shape": "numeric", "tags": [ "rule-of-72", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years to double your money at a 4% annual return (typical of bonds)?" }, "value": 18, "unit": "years", "tolerance": 1, "uid": "1o96kyau3ncbu" }, { "id": "numeric-rule72-2", "shape": "numeric", "tags": [ "rule-of-72", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years to double your money at a 2% savings-account return?" }, "value": 36, "unit": "years", "tolerance": 2, "uid": "g2wgruhm80i6" }, { "id": "numeric-rule72-reverse", "shape": "numeric", "tags": [ "rule-of-72", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "To double your money in 6 years, what annual return (percent) do you need by the Rule of 72?" }, "value": 12, "unit": "%", "tolerance": 0.5, "uid": "1fv88lq1eendn2" }, { "id": "fact-rule72-darkside", "shape": "fact", "tags": [ "rule-of-72", "compounding", "inflation" ], "title": "The dark side of the Rule of 72", "body": "The Rule of 72 works for losses too. At 3.5% annual inflation, the purchasing power of your cash halves in about 20 years (72 ÷ 3.5). Money sitting idle in a checking account is slowly, quietly being destroyed — which is why even conservative savers need their money invested.", "illustration": { "imageSearchTerm": "eroding purchasing power concept", "imagePrompt": "A glowing pile of coins slowly dissolving into fading particles, symbolizing purchasing power eroding over time.", "alt": "The dark side of the Rule of 72", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-rule72-darkside.jpg", "credit": "Pexels · Liliane Buntinx", "creditUrl": "https://www.pexels.com/photo/dramatic-chess-scene-with-fallen-king-31364160/" }, "uid": "1imzl2xm1o7b1" }, { "id": "fact-buy-hold", "shape": "fact", "tags": [ "strategy", "passive" ], "title": "Buy and hold", "body": "Buying diversified index funds or high-quality stocks and holding for decades — ignoring daily noise — is the most empirically supported strategy for most investors. It minimizes fees, taxes, and the behavioral mistakes that wreck returns.", "illustration": { "imageSearchTerm": "sapling tree growing sunlight", "imagePrompt": "A small tree sapling growing steadily in warm sunlight, symbolizing patient long-term growth.", "alt": "Buy and hold", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Christmas_Tree_At_Westfield_Albany.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-buy-hold.webp" }, "uid": "oxqaofe2mu3j" }, { "id": "fact-index-beats", "shape": "fact", "tags": [ "strategy", "passive", "index" ], "title": "Boring beats brilliant", "body": "Index funds tracking the S&P 500 consistently beat more than 90% of actively managed funds over 20-year periods. Rather than trying to beat the market, index investors simply aim to match it — and most professionals can't do better after fees.", "illustration": { "imageSearchTerm": "steady outperformance concept", "imagePrompt": "One steady glowing line moving straight ahead while many erratic zigzagging lines fall behind it.", "alt": "A stock market ticker board", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Craig_Finn_of_The_Hold_Steady.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-index-beats.webp" }, "factVariant": "image-heavy", "imageCaption": "Over 20 years, a boring index fund beats 90% of the pros trying to outsmart it.", "uid": "1pnt05t1m7lmx" }, { "id": "definition-index-fund", "shape": "definition", "tags": [ "strategy", "index", "vocabulary" ], "term": { "modality": "text", "value": "Index fund" }, "definition": { "modality": "text", "value": "A fund that tracks a market index (like the S&P 500) by buying all its constituents in proportion to their weight. Low fees, instant diversification, and tax efficiency are its hallmarks." }, "curatedDistractors": [ "Hedge fund", "Money market fund", "Actively managed fund" ], "uid": "1mf5yhm1d525fc" }, { "id": "definition-etf", "shape": "definition", "tags": [ "strategy", "index", "vocabulary" ], "term": { "modality": "text", "value": "ETF" }, "definition": { "modality": "text", "value": "Exchange-Traded Fund — like an index fund but trades intraday on an exchange like a stock. Expense ratios of 0.03–0.20% are common, versus 1–2% for active funds." }, "uid": "125oekx1ubsixb" }, { "id": "pair-spy", "shape": "pair", "tags": [ "strategy", "index", "etf" ], "sideA": { "modality": "text", "value": "SPY" }, "sideB": { "modality": "text", "value": "ETF tracking the S&P 500" }, "uid": "2kkf8rnkz4rj" }, { "id": "pair-qqq", "shape": "pair", "tags": [ "strategy", "index", "etf" ], "sideA": { "modality": "text", "value": "QQQ" }, "sideB": { "modality": "text", "value": "ETF tracking the Nasdaq 100" }, "uid": "10802yh1o7jm4r" }, { "id": "pair-vti", "shape": "pair", "tags": [ "strategy", "index", "etf" ], "sideA": { "modality": "text", "value": "VTI" }, "sideB": { "modality": "text", "value": "ETF tracking the total U.S. stock market" }, "uid": "lhk0u8wl111m" }, { "id": "pair-growth-investing", "shape": "pair", "tags": [ "investing-style", "strategy", "growth" ], "sideA": { "modality": "text", "value": "Growth investing" }, "sideB": { "modality": "text", "value": "Pay premium prices for companies expanding revenue and earnings fast" }, "uid": "q1h60l14xz3an" }, { "id": "pair-value-investing", "shape": "pair", "tags": [ "investing-style", "strategy", "value" ], "sideA": { "modality": "text", "value": "Value investing" }, "sideB": { "modality": "text", "value": "Buy stocks trading below intrinsic value — dollars for fifty cents" }, "uid": "u8cfqi1nilg10" }, { "id": "definition-dividend-aristocrat", "shape": "definition", "tags": [ "investing-style", "strategy", "dividend", "vocabulary" ], "term": { "modality": "text", "value": "Dividend Aristocrat" }, "definition": { "modality": "text", "value": "An S&P 500 company that has raised its dividend for 25+ consecutive years. Reinvested dividends compound powerfully and provide income in retirement." }, "uid": "jm9aaovbzk4s" }, { "id": "definition-dca", "shape": "definition", "tags": [ "investing-style", "strategy", "dca", "vocabulary" ], "term": { "modality": "text", "value": "Dollar-cost averaging (DCA)" }, "definition": { "modality": "text", "value": "Investing a fixed dollar amount at regular intervals regardless of price. It removes the burden of timing the market and ensures you buy more shares when prices are low." }, "uid": "wjxxg71m4iri5" }, { "id": "pair-day-trading", "shape": "pair", "tags": [ "trading-style", "strategy", "trading" ], "sideA": { "modality": "text", "value": "Day trading" }, "sideB": { "modality": "text", "value": "Buying and selling within a single session; extremely high-risk" }, "uid": "10ihuqy1sgiami" }, { "id": "pair-swing-trading", "shape": "pair", "tags": [ "trading-style", "strategy", "trading" ], "sideA": { "modality": "text", "value": "Swing trading" }, "sideB": { "modality": "text", "value": "Holding for days to weeks based on technical patterns" }, "uid": "1od5za05blmnw" }, { "id": "pair-position-trading", "shape": "pair", "tags": [ "trading-style", "strategy", "trading" ], "sideA": { "modality": "text", "value": "Position trading" }, "sideB": { "modality": "text", "value": "Holding for months based on macro and fundamental views" }, "uid": "1axce3z1afdvwf" }, { "id": "fact-business-cycles", "shape": "fact", "tags": [ "sector-rotation", "cycle" ], "title": "The business cycle", "body": "The U.S. economy has run through 12 business cycles since 1945, with the average full cycle lasting around 6 years (expansions average about 5 years, contractions about 10 months). Astute investors track which phase the economy is in and rotate their portfolios accordingly.", "illustration": { "imagePrompt": "A smooth economic wave chart with peaks and troughs, illustrating expansion and contraction phases over time.", "imageSearchTerm": "business cycle wave chart", "alt": "An economic business-cycle wave curve", "depictable": true, "url": "https://cdn.recurxive.com/packs/investing-201/fact-business-cycles.jpg", "credit": "Pexels · Hanna Pad", "creditUrl": "https://www.pexels.com/photo/statistics-survey-sheet-6801639/" }, "factVariant": "image-heavy", "imageCaption": "12 cycles since 1945, averaging six years each — expansions run for years, contractions barely last a season.", "uid": "1a3ztwz2mi3m9" }, { "id": "numeric-cycles-count", "shape": "numeric", "tags": [ "sector-rotation", "cycle", "numeric" ], "prompt": { "modality": "text", "value": "How many U.S. business cycles have occurred since 1945?" }, "value": 12, "unit": "cycles", "tolerance": 0, "uid": "qbk4gfiv21el" }, { "id": "numeric-avg-cycle", "shape": "numeric", "tags": [ "sector-rotation", "cycle", "numeric" ], "prompt": { "modality": "text", "value": "About how many years does the average full U.S. business cycle last?" }, "value": 6, "unit": "years", "tolerance": 1, "uid": "1vraezx1tpem1h" }, { "id": "definition-gics", "shape": "definition", "tags": [ "sector-rotation", "gics", "vocabulary" ], "term": { "modality": "text", "value": "GICS" }, "definition": { "modality": "text", "value": "Global Industry Classification Standard — the system that organizes the S&P 500 into 11 sectors, from Information Technology and Financials to Utilities and Energy." }, "curatedDistractors": [ "ICB", "NAICS", "SIC" ], "uid": "1gegm5aif6sfu" }, { "id": "numeric-gics-sectors", "shape": "numeric", "tags": [ "sector-rotation", "gics", "numeric" ], "prompt": { "modality": "text", "value": "Into how many sectors does the GICS divide the S&P 500?" }, "value": 11, "unit": "sectors", "tolerance": 0, "uid": "ow9a0s80rje2" }, { "id": "fact-sector-rotation", "shape": "fact", "tags": [ "sector-rotation", "cycle" ], "title": "Rotating with the cycle", "body": "Different sectors lead at different points in the cycle. Early-cycle recoveries favor financials and consumer discretionary; mid-cycle favors technology and industrials; late-cycle favors energy and materials; recessions favor defensive utilities, healthcare, and staples. Rotation means leaning toward whatever the current phase rewards.", "illustration": { "imageSearchTerm": "sector rotation wheel concept", "imagePrompt": "An abstract rotating wheel or compass with different glowing segments, symbolizing shifting focus across economic sectors.", "alt": "Rotating with the cycle", "depictable": false, "kind": "photo", "credit": "Unsplash · Siyan Ren · Unsplash License", "creditUrl": "https://unsplash.com/photos/photo-of-grey-and-black-ferris-wheel-during-daytime-jN_VbffJHlI", "subject": "Clean black-and-white stock photo of the bottom half of a Ferris wheel, radial spokes converging to a central hub, no people, no text, no logos — an honest generic 'wheel' image", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-sector-rotation.webp" }, "uid": "1vjs3ey1k0jtc8" }, { "id": "pair-early-cycle", "shape": "pair", "tags": [ "sector-rotation", "cycle" ], "sideA": { "modality": "text", "value": "Early cycle (recovery)" }, "sideB": { "modality": "text", "value": "Financials, consumer discretionary, real estate outperform" }, "uid": "18293321flprle" }, { "id": "pair-late-cycle", "shape": "pair", "tags": [ "sector-rotation", "cycle" ], "sideA": { "modality": "text", "value": "Late cycle (slowing, inflation)" }, "sideB": { "modality": "text", "value": "Energy, materials, consumer staples outperform" }, "uid": "1h5v0m524vkn9" }, { "id": "pair-recession-sectors", "shape": "pair", "tags": [ "sector-rotation", "cycle" ], "sideA": { "modality": "text", "value": "Recession" }, "sideB": { "modality": "text", "value": "Utilities, healthcare, consumer staples hold up best" }, "uid": "u0spvmok3ba0" }, { "id": "fact-rate-environment", "shape": "fact", "tags": [ "sector-rotation", "cycle" ], "title": "Following the Fed", "body": "In a rising-rate environment, typically late cycle, energy and materials tend to outperform as commodity-linked earnings hold up while credit tightens. When the Fed pivots to cutting rates in an early recovery, growth stocks and real estate usually lead the charge.", "illustration": { "imageSearchTerm": "Federal Reserve building Washington", "imagePrompt": "The neoclassical Federal Reserve building in Washington DC, viewed from the front steps.", "alt": "The Federal Reserve's Eccles Building in Washington", "depictable": true, "kind": "photo" }, "uid": "91v5uia8uzgq" }, { "id": "fact-cramer", "shape": "fact", "tags": [ "sector-rotation", "cramer" ], "title": "Cramer's homework rule", "body": "Jim Cramer, host of CNBC's Mad Money since 2005, preaches a disciplined homework approach: never buy a stock without personal insight into the underlying company. Understanding the business — its revenue model, competition, and management — is the price of admission for owning it.", "illustration": { "imageSearchTerm": "financial TV host studio", "imagePrompt": "An energetic television host presenting on a colorful financial news studio set.", "alt": "Television host and investor Jim Cramer", "credit": "Wikimedia Commons (Wikipedia: Jim Cramer)", "creditUrl": "https://en.wikipedia.org/wiki/Jim_Cramer", "depictable": true, "url": "https://cdn.recurxive.com/packs/investing-201/fact-cramer.jpg" }, "uid": "1c1wm9jkqaa83" }, { "id": "fact-cramer-mistakes", "shape": "fact", "tags": [ "sector-rotation", "cramer" ], "title": "Cramer's five mistakes", "body": "Cramer shares five mistakes he learned the hard way: holding losers too long, overconfidence in strong brands, panic selling on short-term news, following others' advice blindly, and relying on a single indicator like the yield curve. Each is a discipline failure more than an analytical one.", "illustration": { "imageSearchTerm": "panicked decision-making concept", "imagePrompt": "A single figure standing still while arrows of light rush chaotically past in different directions.", "alt": "Cramer's five mistakes", "credit": "Pexels · Ann H", "creditUrl": "https://www.pexels.com/photo/yellow-scrabble-tiles-1888015/", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-cramer-mistakes.jpg" }, "uid": "depeko1x1ttgg" }, { "id": "fact-mag7", "shape": "fact", "tags": [ "mag7" ], "title": "The Magnificent Seven", "body": "The 'Magnificent Seven' is a term coined by Bank of America strategist Michael Hartnett in 2023, referring to seven mega-cap technology companies dominating the S&P 500. The name nods to the 1960 Western film. These stocks have set the tone for the entire market.", "illustration": { "imagePrompt": "A large digital stock market display board glowing with colorful upward-trending line charts and bar graphs in a busy trading environment.", "imageSearchTerm": "technology stock ticker display", "alt": "A display wall of technology company stock charts", "depictable": true, "credit": "Unsplash · Marcus Reubenstein · Unsplash License", "creditUrl": "https://unsplash.com/photos/a-wall-that-has-a-sign-on-it-dkJluheCVl8", "subject": "A well-lit photo of the ASX (Australian Securities Exchange) electronic display wall showing 'STOCK / BID / OFFER / LAST / VOL' columns with scrolling red and green stock prices — a clear, real 'display wall' of stock data.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-mag7.webp" }, "factVariant": "image-heavy", "imageCaption": "Seven mega-cap tech stocks, named after a 1960 Western, now set the tone for the whole market.", "curatedDistractors": [ "FAANG", "Nifty Fifty", "Four Horsemen" ], "uid": "ccvdd91x6xwgv" }, { "id": "fact-mag7-companies", "shape": "fact", "tags": [ "mag7" ], "title": "Who they are", "body": "The Magnificent Seven are Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet/Google (GOOGL), Meta Platforms (META), Nvidia (NVDA), and Tesla (TSLA) — seven companies whose combined market cap has at times exceeded the entire stock markets of the UK, Canada, and Japan combined.", "illustration": { "imageSearchTerm": "Silicon Valley tech campus", "imagePrompt": "A sleek modern glass-and-steel technology company campus with manicured lawns and reflective architecture, evoking Silicon Valley's biggest firms.", "alt": "Who they are", "depictable": true, "credit": "Coolcaesar · CC BY-SA 3.0", "creditUrl": "https://commons.wikimedia.org/wiki/File:Silicon_Valley,_facing_southward_towards_Downtown_San_Jose,_2014.jpg", "subject": "A daytime aerial photo looking south over San Jose's downtown skyline, the airport, and surrounding low-rise office/industrial parks with foothills behind — a genuine wide shot of the real Silicon Valley region.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-mag7-companies.webp" }, "uid": "ske90hgmaf7n" }, { "id": "fact-mag7-dominance", "shape": "fact", "tags": [ "mag7" ], "title": "Outsized influence", "body": "In 2023 and 2024, the Magnificent Seven accounted for more than half of the S&P 500's total returns. By the end of 2024 they made up roughly one-third of the index's total market capitalization — meaning the broad 'market' is increasingly a bet on seven companies.", "illustration": { "imageSearchTerm": "towering skyscraper dominating skyline", "imagePrompt": "A single towering skyscraper rising high above a cluster of much smaller surrounding buildings, dominating the entire skyline.", "alt": "Outsized influence", "credit": "Pexels · RDNE Stock project", "creditUrl": "https://www.pexels.com/photo/influencer-discussing-temporary-cryptocurrency-declines-8370811/", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/fact-mag7-dominance.jpg" }, "uid": "14h7mdg53hdl0" }, { "id": "numeric-mag7-count", "shape": "numeric", "tags": [ "mag7", "numeric" ], "prompt": { "modality": "text", "value": "How many companies make up the Magnificent Seven?" }, "value": 7, "unit": "companies", "tolerance": 0, "uid": "6xxk5tsbihev" }, { "id": "numeric-nvidia-5t", "shape": "numeric", "tags": [ "mag7", "nvidia", "numeric" ], "prompt": { "modality": "text", "value": "What market cap (in trillions of dollars) did Nvidia briefly reach in October 2025?" }, "value": 5, "unit": "trillion USD", "tolerance": 0, "uid": "y2ez131ujmwiz" }, { "id": "pair-mag7-coiner", "shape": "pair", "tags": [ "mag7" ], "sideA": { "modality": "text", "value": "'Magnificent Seven' term" }, "sideB": { "modality": "text", "value": "Coined by BofA strategist Michael Hartnett in 2023" }, "uid": "15i7kiykgnf12" }, { "id": "numeric-hartnett-year", "shape": "numeric", "tags": [ "mag7", "numeric" ], "prompt": { "modality": "text", "value": "In what year was the term 'Magnificent Seven' coined?" }, "value": 2023, "unit": "year", "tolerance": 0, "uid": "165uk83e360ut" }, { "id": "pair-apple-moat", "shape": "pair", "tags": [ "consumer-tech", "mag7", "company" ], "sideA": { "modality": "text", "value": "Apple" }, "sideB": { "modality": "text", "value": "Moat: ecosystem lock-in and brand loyalty" }, "uid": "1ttz416w2nn8a" }, { "id": "pair-microsoft-moat", "shape": "pair", "tags": [ "infra-tech", "mag7", "company" ], "sideA": { "modality": "text", "value": "Microsoft" }, "sideB": { "modality": "text", "value": "Moat: enterprise switching costs; watch Azure cloud growth" }, "uid": "l9em9eundnt" }, { "id": "pair-amazon-moat", "shape": "pair", "tags": [ "consumer-tech", "mag7", "company" ], "sideA": { "modality": "text", "value": "Amazon" }, "sideB": { "modality": "text", "value": "Moat: AWS scale and logistics network" }, "uid": "1sd4pl2ulyk88" }, { "id": "pair-alphabet-moat", "shape": "pair", "tags": [ "infra-tech", "mag7", "company" ], "sideA": { "modality": "text", "value": "Alphabet" }, "sideB": { "modality": "text", "value": "Moat: search monopoly and data advantage" }, "uid": "pwywn71uacwnd" }, { "id": "pair-meta-moat", "shape": "pair", "tags": [ "consumer-tech", "mag7", "company" ], "sideA": { "modality": "text", "value": "Meta" }, "sideB": { "modality": "text", "value": "Moat: social network effects and ad targeting" }, "uid": "1smwwr82ibxoa" }, { "id": "pair-nvidia-moat", "shape": "pair", "tags": [ "infra-tech", "mag7", "company" ], "sideA": { "modality": "text", "value": "Nvidia" }, "sideB": { "modality": "text", "value": "Moat: the CUDA ecosystem and chip architecture" }, "uid": "9p3tqs1tdvs4o" }, { "id": "pair-tesla-moat", "shape": "pair", "tags": [ "consumer-tech", "mag7", "company" ], "sideA": { "modality": "text", "value": "Tesla" }, "sideB": { "modality": "text", "value": "Moat: brand, Supercharger network, vertical integration" }, "uid": "1e8w47y4ijd7u" }, { "id": "fact-company-framework", "shape": "fact", "tags": [ "mag7", "analysis" ], "title": "How to break down any company", "body": "Work through seven questions: What does it actually do (the revenue model)? How big is the addressable market? What is the moat? What does the income statement show? What does the balance sheet say? How much free cash flow does it generate? And finally — what's the valuation? Quality at a reasonable price is the goal.", "illustration": { "imageSearchTerm": "magnifying glass business blueprint", "imagePrompt": "A person examining a large architectural blueprint spread across a table, studying the interconnected parts of a complex structure with a magnifying glass.", "alt": "How to break down any company", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Magnifier_3_2.png", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-company-framework.webp" }, "uid": "12wjmpkf8m8vk" }, { "id": "definition-bull-market", "shape": "definition", "tags": [ "market-mood", "vocabulary", "market-basics" ], "term": { "modality": "text", "value": "Bull market" }, "definition": { "modality": "text", "value": "A market environment of rising prices and investor optimism, typically defined as a 20%+ rise from a recent low." }, "uid": "1wq8ko3pw9afr" }, { "id": "definition-bear-market", "shape": "definition", "tags": [ "market-mood", "vocabulary", "market-basics" ], "term": { "modality": "text", "value": "Bear market" }, "definition": { "modality": "text", "value": "A market decline of 20% or more from a recent high, marked by pessimism and selling." }, "uid": "t9ipwp1byxkf9" }, { "id": "definition-correction", "shape": "definition", "tags": [ "market-mood", "vocabulary", "market-basics" ], "term": { "modality": "text", "value": "Correction" }, "definition": { "modality": "text", "value": "A decline of 10–20% from a recent peak — normal, historically frequent, and usually short-lived." }, "uid": "53ov7x18sm6qr" }, { "id": "definition-volatility-vix", "shape": "definition", "tags": [ "market-mood", "vocabulary", "market-basics" ], "term": { "modality": "text", "value": "Volatility / VIX" }, "definition": { "modality": "text", "value": "Volatility is the statistical measure of price fluctuation. The VIX (CBOE Volatility Index), the market's 'fear gauge,' measures expected S&P 500 volatility over the next 30 days and spikes during stress." }, "uid": "1q564te1q3shtq" }, { "id": "fact-market-cap-tiers", "shape": "fact", "tags": [ "vocabulary", "market-basics" ], "title": "Market-cap tiers", "body": "Market cap is stock price times shares outstanding. The tiers: mega-cap is $200B+, large-cap $10–200B, mid-cap $2–10B, small-cap $300M–2B, and micro-cap below $300M. Size shapes a stock's risk, liquidity, and growth runway.", "illustration": { "imageSearchTerm": "stacked blocks different sizes", "imagePrompt": "A series of smooth stone blocks of increasing size arranged in a row from smallest to largest, each resting solidly on the ground.", "alt": "Market-cap tiers", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Stacked_bar_chart_of_the_number_of_publications_reporting_data_for_each_of_the_groundwater_chemical_parameters_that_present_direct_health_risks.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-market-cap-tiers.webp" }, "uid": "1rl377b1cxvejn" }, { "id": "definition-blue-chip", "shape": "definition", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "term": { "modality": "text", "value": "Blue chip" }, "definition": { "modality": "text", "value": "A large, well-established, financially sound company with a long track record of reliable performance." }, "uid": "eea3431megp3" }, { "id": "pair-dividend-yield", "shape": "pair", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "sideA": { "modality": "text", "value": "Dividend yield" }, "sideB": { "modality": "text", "value": "Annual dividend per share divided by the stock price" }, "uid": "nkaevgqa9nck" }, { "id": "definition-ipo", "shape": "definition", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "term": { "modality": "text", "value": "IPO" }, "definition": { "modality": "text", "value": "Initial Public Offering — a private company's first sale of stock to the public, the moment it begins trading on an exchange." }, "uid": "1olkm611l4gpv3" }, { "id": "definition-alpha", "shape": "definition", "tags": [ "market-metrics", "vocabulary", "advanced" ], "term": { "modality": "text", "value": "Alpha" }, "definition": { "modality": "text", "value": "Returns above a benchmark — for example, beating the S&P 500. Alpha is your edge, the value added beyond simply matching the market." }, "uid": "evyhrrf9m7if" }, { "id": "definition-beta", "shape": "definition", "tags": [ "market-metrics", "vocabulary", "advanced" ], "term": { "modality": "text", "value": "Beta" }, "definition": { "modality": "text", "value": "A stock's sensitivity to market moves. A beta of 1.5 means it tends to move 50% more than the market, both up and down." }, "uid": "n73k6sebxtj6" }, { "id": "definition-float", "shape": "definition", "tags": [ "market-metrics", "vocabulary", "advanced" ], "term": { "modality": "text", "value": "Float" }, "definition": { "modality": "text", "value": "The number of shares available for public trading — total shares minus insider holdings and restricted stock." }, "uid": "1o90z091ulrha7" }, { "id": "definition-short-selling", "shape": "definition", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "term": { "modality": "text", "value": "Short selling" }, "definition": { "modality": "text", "value": "Borrowing shares to sell them, hoping to buy them back cheaper later. It profits from falling prices but carries theoretically unlimited downside risk." }, "uid": "10hvspy1u0dw12" }, { "id": "definition-hedge", "shape": "definition", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "term": { "modality": "text", "value": "Hedge" }, "definition": { "modality": "text", "value": "Taking an offsetting position to reduce risk — for example, buying put options as insurance on a stock portfolio." }, "uid": "8edeg1g5twmw" }, { "id": "definition-options", "shape": "definition", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "term": { "modality": "text", "value": "Options" }, "definition": { "modality": "text", "value": "Contracts giving the right, but not the obligation, to buy (call) or sell (put) a stock at a set price by a set date." }, "uid": "jutddart4m66" }, { "id": "definition-buyback", "shape": "definition", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "term": { "modality": "text", "value": "Buyback" }, "definition": { "modality": "text", "value": "A share repurchase — a company uses cash to buy its own stock, reducing the share count and increasing earnings per share." }, "uid": "vo4e1uiv1wrg" }, { "id": "pair-bps", "shape": "pair", "tags": [ "market-metrics", "vocabulary", "advanced" ], "sideA": { "modality": "text", "value": "Basis points (bps)" }, "sideB": { "modality": "text", "value": "100 basis points = 1%; used for interest rates and margins" }, "uid": "11urzpg5yts9o" }, { "id": "definition-sp500", "shape": "definition", "tags": [ "vocabulary", "index" ], "term": { "modality": "text", "value": "S&P 500" }, "definition": { "modality": "text", "value": "A market-cap-weighted index of the 500 largest U.S. public companies — the most widely used benchmark for the U.S. stock market." }, "uid": "lyg60p1juvtmx" }, { "id": "definition-djia", "shape": "definition", "tags": [ "vocabulary", "index" ], "term": { "modality": "text", "value": "Dow Jones Industrial Average" }, "definition": { "modality": "text", "value": "A price-weighted index of 30 large U.S. companies — the oldest benchmark, but less representative of the broad market than the S&P 500." }, "uid": "qljr6t1jyh8g9" }, { "id": "pair-nasdaq-composite", "shape": "pair", "tags": [ "vocabulary", "index" ], "sideA": { "modality": "text", "value": "Nasdaq Composite" }, "sideB": { "modality": "text", "value": "All stocks on the Nasdaq exchange — heavily tech-weighted" }, "uid": "1x83e01rtn6ca" }, { "id": "pair-nasdaq-100", "shape": "pair", "tags": [ "vocabulary", "index" ], "sideA": { "modality": "text", "value": "Nasdaq 100" }, "sideB": { "modality": "text", "value": "The 100 largest non-financial Nasdaq companies; basis for QQQ" }, "uid": "1akqswatryopo" }, { "id": "definition-russell-2000", "shape": "definition", "tags": [ "vocabulary", "index" ], "term": { "modality": "text", "value": "Russell 2000" }, "definition": { "modality": "text", "value": "An index of 2,000 small-cap U.S. companies — the standard benchmark for small-cap performance." }, "uid": "1ptpgsr7yad69" }, { "id": "fact-index-weighting", "shape": "fact", "tags": [ "vocabulary", "index" ], "title": "Weighting matters", "body": "How an index is weighted changes what it tells you. The S&P 500 is market-cap weighted, so giant companies dominate it. The Dow is price-weighted, so a high-priced stock sways it more than a larger company with a lower share price — a quirk that makes the Dow less representative.", "illustration": { "imageSearchTerm": "balance scale uneven weights", "imagePrompt": "An old-fashioned brass balance scale tilted dramatically to one side under a much heavier weight than the other.", "alt": "Weighting matters", "depictable": false, "credit": "Pexels · Black and white image of a vintage balance scale in an İstanbul museum display.", "creditUrl": "https://www.pexels.com/photo/balance-scale-on-display-in-the-museum-15253932/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-index-weighting.webp" }, "uid": "ehbryq1ft67vs" }, { "id": "fact-ai-trading", "shape": "fact", "tags": [ "future", "ai" ], "title": "AI and algorithmic trading", "body": "AI is reshaping how capital is allocated, risk is assessed, and trades are executed. Estimates vary by methodology, but a widely cited figure holds that over 70% of U.S. equity trading is now done by algorithmic systems. AI improves fraud detection, personalizes recommendations, automates credit scoring, and enables real-time risk profiling at scale.", "illustration": { "imageSearchTerm": "algorithmic trading computer screens", "imagePrompt": "A dim, high-tech trading room filled with multiple computer monitors displaying rapidly shifting line charts and colorful data streams, no people visible.", "alt": "AI and algorithmic trading", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:1111130underarrest1.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-ai-trading.webp" }, "factVariant": "image-heavy", "imageCaption": "More than 70% of U.S. stock trades are now placed by machines, not humans.", "uid": "11gylx91mb3q2z" }, { "id": "numeric-algo-pct", "shape": "numeric", "tags": [ "future", "ai", "numeric" ], "prompt": { "modality": "text", "value": "What percent of U.S. equity trading is now conducted by algorithmic systems?" }, "value": 70, "unit": "%", "tolerance": 5, "uid": "14okv5y14dekfy" }, { "id": "definition-defi", "shape": "definition", "tags": [ "future", "defi", "vocabulary" ], "term": { "modality": "text", "value": "DeFi" }, "definition": { "modality": "text", "value": "Decentralized Finance — blockchain-based smart contracts that recreate lending, borrowing, and trading without traditional intermediaries. Protocols like Aave, Uniswap, and Compound run transparently on public blockchains." }, "uid": "1x4by8d1liqlkn" }, { "id": "fact-tokenization", "shape": "fact", "tags": [ "future", "tokenization" ], "title": "Tokenization of real assets", "body": "Institutions are increasingly representing real-world assets — real estate, bonds, private equity, commodities — as digital tokens on a blockchain. BlackRock, JPMorgan, and Goldman Sachs have all launched tokenized initiatives, promising fractional ownership, 24/7 liquidity, and programmable compliance.", "illustration": { "imageSearchTerm": "digital blockchain network glow", "imagePrompt": "A glowing network of interconnected light nodes and thin light trails forming a digital web, subtly overlaid above a city skyline of buildings.", "alt": "Tokenization of real assets", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:World_Digital_Library_Logo_2008-04-24.png", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-tokenization.webp" }, "uid": "ax5788nxnoeu" }, { "id": "fact-cbdc", "shape": "fact", "tags": [ "future", "cbdc" ], "title": "Central Bank Digital Currencies", "body": "Governments are developing digital currencies issued directly by central banks — programmable, traceable equivalents of cash. Over 130 countries are exploring CBDCs; China's digital yuan is already operational. They could reshape monetary policy, financial inclusion, and cross-border payments.", "illustration": { "imageSearchTerm": "digital yuan mobile payment", "imagePrompt": "A person in an urban Chinese street market holding a smartphone up to a payment terminal, completing a contactless mobile payment.", "alt": "Central Bank Digital Currencies", "depictable": true, "credit": "Wikipedia — Digital currency · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Digital_currency", "subject": "A labeled Venn/taxonomy diagram titled 'The money flower: a taxonomy of money' (BIS 2017) with categories including 'Central bank digital currency', 'central bank reserves', 'cryptocurrency', 'cash', and 'commodity money' — a chart, not a photograph, but explicitly on-topic for the card title.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-cbdc.webp" }, "uid": "1bdd36pvzv4h1" }, { "id": "definition-esg", "shape": "definition", "tags": [ "future", "esg", "vocabulary" ], "term": { "modality": "text", "value": "ESG investing" }, "definition": { "modality": "text", "value": "Environmental, Social, and Governance investing — evaluating companies on non-financial factors alongside financial performance. It has grown from niche to mainstream, with trillions in assets under ESG mandates." }, "uid": "qflg26129u3hs" }, { "id": "fact-democratization", "shape": "fact", "tags": [ "future", "democratization" ], "title": "The democratization of finance", "body": "Commission-free trading (pioneered by Robinhood), fractional shares, ETF proliferation, and AI tools have radically lowered barriers. As recently as 2018, a single Amazon share cost $2,000+; today a $1 stake is possible on most retail platforms.", "illustration": { "imageSearchTerm": "smartphone stock trading app", "imagePrompt": "A person casually using a stock trading app on their smartphone while relaxed on a couch, scrolling through investment options.", "alt": "The democratization of finance", "depictable": true, "credit": "Pexels · Stock trading app on smartphone displaying Robinhood Markets price on wooden desk.", "creditUrl": "https://www.pexels.com/photo/white-samsung-android-smartphone-on-brown-wooden-table-9067435/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-democratization.webp" }, "uid": "oft0zz1x7f1cv" }, { "id": "fact-portfolio-pyramid", "shape": "fact", "tags": [ "foundation", "portfolio" ], "title": "The portfolio pyramid", "body": "A useful model for building a portfolio in three layers. The base (60–70%) is index funds — the bedrock of wealth creation. The middle (20–30%) is individual high-quality stocks with moats and strong cash flow. The top (5–10%) is higher-risk bets — growth stocks, crypto, speculation — only what you can afford to lose entirely.", "illustration": { "imagePrompt": "Gold coins stacked into a three-tiered pyramid shape, a wide sturdy base narrowing gradually to a small peak at the top.", "imageSearchTerm": "gold coins pyramid stack", "alt": "A layered investment portfolio pyramid diagram", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:2012_Gold_Export_Treemap.png", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-portfolio-pyramid.webp" }, "factVariant": "image-heavy", "imageCaption": "A useful model for building a portfolio in three layers.", "uid": "1hdhg4u18dyoxw" }, { "id": "pair-base-layer", "shape": "pair", "tags": [ "foundation", "portfolio" ], "sideA": { "modality": "text", "value": "Base layer (60–70%)" }, "sideB": { "modality": "text", "value": "Index funds — the bedrock of long-term wealth" }, "uid": "14can141jgx0to" }, { "id": "definition-401k", "shape": "definition", "tags": [ "foundation", "accounts", "vocabulary" ], "term": { "modality": "text", "value": "401(k)" }, "definition": { "modality": "text", "value": "An employer-sponsored, pre-tax retirement account. Contributions reduce your taxable income now; withdrawals are taxed in retirement." }, "uid": "1m5phnlmcxwsp" }, { "id": "definition-ira", "shape": "definition", "tags": [ "foundation", "accounts", "vocabulary" ], "term": { "modality": "text", "value": "Traditional IRA" }, "definition": { "modality": "text", "value": "An individual pre-tax retirement account. Contributions may be deductible now, and withdrawals are taxed in retirement." }, "uid": "no8lat1hgs3nf" }, { "id": "definition-roth-ira", "shape": "definition", "tags": [ "foundation", "accounts", "vocabulary" ], "term": { "modality": "text", "value": "Roth IRA" }, "definition": { "modality": "text", "value": "An individual retirement account funded with post-tax dollars — but all growth and qualified withdrawals are completely tax-free, making it one of the most powerful long-term wealth vehicles." }, "illustration": { "imagePrompt": "Photograph of a glass jar labeled retirement filled with coins and a small green plant growing out of it, sunlight, savings and compound growth theme, warm tones", "imageSearchTerm": "retirement savings jar coins plant", "alt": "A retirement savings jar with coins and a growing plant", "credit": "Pexels · A jar filled with coins and a plant symbolizes growth in savings and investment.", "creditUrl": "https://www.pexels.com/photo/close-up-shot-of-a-jar-with-coins-9755390/", "url": "https://cdn.recurxive.com/packs/investing-201/images/definition-roth-ira.webp" }, "uid": "xq0mzisdjzhk" }, { "id": "definition-hsa", "shape": "definition", "tags": [ "foundation", "accounts", "vocabulary" ], "term": { "modality": "text", "value": "HSA" }, "definition": { "modality": "text", "value": "A triple-tax-advantaged account: pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses. It can double as a stealth retirement account." }, "uid": "2ayo1lgz8jp5" }, { "id": "fact-roth-power", "shape": "fact", "tags": [ "foundation", "accounts" ], "title": "Why the Roth is special", "body": "For most investors the Roth IRA is the single most powerful long-term wealth vehicle. Because growth and withdrawals are tax-free, decades of compounding accrue entirely to you — the longer the time horizon, the more valuable that tax-free status becomes.", "illustration": { "imageSearchTerm": "sapling growing tree timeline", "imagePrompt": "A small tree sapling shown growing progressively larger across a sunlit field, its canopy expanding wide by golden hour.", "alt": "Hands holding a jar of savings", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:The_Sapling_20231119_140207_01.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-roth-power.webp" }, "uid": "1awh3aaowrdoi" }, { "id": "fact-compound-power", "shape": "fact", "tags": [ "foundation", "compounding" ], "title": "The most powerful force", "body": "The single most powerful force in personal finance is compound growth — your money earns returns, and those returns earn returns of their own. Left alone over time, even modest sums grow dramatically. Time, not timing, is the investor's greatest ally.", "illustration": { "imageSearchTerm": "spiral staircase rising steeper", "imagePrompt": "A staircase spiraling upward that grows visibly steeper as it climbs higher into warm golden light.", "alt": "Stacks of coins with a plant, illustrating compounding", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-compound-power.webp", "credit": "Pexels · File:Spiral Architect 01-10-10.jpg", "creditUrl": "https://commons.wikimedia.org/wiki/File:Spiral_Architect_01-10-10.jpg" }, "uid": "w6l13s1mvgjuk" }, { "id": "fact-compound-example", "shape": "fact", "tags": [ "foundation", "compounding" ], "title": "The compound math", "body": "A 25-year-old who invests $10,000 in an S&P 500 index fund at 10% and never adds a dollar has about $453,000 by age 65. Add $500 a month throughout, and the ending value tops $3.2 million. Waiting is the costliest mistake a young investor can make.", "illustration": { "imagePrompt": "A glowing curve rising steeply from a single small point at its base to a tall peak high above, faint markers tracing its accelerating climb.", "imageSearchTerm": "exponential growth curve coins", "alt": "Coin stacks growing taller beside a seedling", "credit": "Pexels · Close-up of stacked gold coins symbolizing wealth and financial growth.", "creditUrl": "https://www.pexels.com/photo/silver-round-coins-41206/", "depictable": false, "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-compound-example.webp" }, "factVariant": "image-heavy", "imageCaption": "$10,000 at 25, never touched, becomes $453,000 by 65. Add $500/month? Over $3.2 million.", "uid": "1tveajd16jyv0x" }, { "id": "numeric-compound-453k", "shape": "numeric", "tags": [ "foundation", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "$10,000 invested at age 25 at 10% grows to roughly how much by age 65 (no further contributions)?" }, "value": 453000, "unit": "USD", "tolerance": 20000, "uid": "1hju0e9ni7pw" }, { "id": "fact-cramers-rules", "shape": "fact", "tags": [ "foundation", "discipline" ], "title": "The discipline rules", "body": "A few discipline rules recur across great investors: do your homework before buying; own your mistakes and sell when a thesis breaks, regardless of profit or loss; don't panic sell, because every historical bust has led to another boom; and diversify — but knowing ten companies well beats knowing fifty superficially.", "illustration": { "imageSearchTerm": "chess player disciplined move", "imagePrompt": "A chess player's hand carefully and deliberately moving a single piece across a wooden chessboard, conveying calm, disciplined strategy.", "alt": "The discipline rules", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Bangkok_NatMu_-_Siamese_ceramics_(2022)_-_Thai_chess_pieces_%E0%B8%AB%E0%B8%A1%E0%B8%B2%E0%B8%81%E0%B8%A3%E0%B8%B8%E0%B8%81%E0%B9%84%E0%B8%97%E0%B8%A2.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-cramers-rules.webp" }, "uid": "1k1r0p75vqhdl" }, { "id": "fact-sp500-1928", "shape": "fact", "tags": [ "foundation", "compounding" ], "title": "A century of returns", "body": "The S&P 500 has returned roughly 9.92% annualized since 1928, including dividends. A $100 investment made in 1957 would have grown to about $106,000 by 2025 — though adjusted for inflation, that's roughly $9,700 in real purchasing power, a reminder that inflation quietly erodes nominal gains.", "illustration": { "imageSearchTerm": "1920s stock exchange floor", "imagePrompt": "A bustling historic New York Stock Exchange trading floor from the early twentieth century, crowded with traders in suits and hats.", "alt": "A century of returns", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Ren%C3%A9e_Simonot.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fact-sp500-1928.webp" }, "uid": "1ewrv501ra6m6i" }, { "id": "numeric-sp500-1928", "shape": "numeric", "tags": [ "foundation", "compounding", "numeric" ], "prompt": { "modality": "text", "value": "What is the S&P 500's approximate annualized return since 1928 (percent, with dividends)?" }, "value": 9.92, "unit": "%", "tolerance": 0.5, "uid": "jbyehy7qj6yo" }, { "id": "pair-recall-buttonwood", "shape": "pair", "tags": [ "institutions", "recall" ], "sideA": { "modality": "text", "value": "Buttonwood Agreement" }, "sideB": { "modality": "text", "value": "1792 — the birth of the NYSE" }, "uid": "sycc0xjb2gzf" }, { "id": "pair-recall-nasdaq", "shape": "pair", "tags": [ "institutions", "recall" ], "sideA": { "modality": "text", "value": "Nasdaq" }, "sideB": { "modality": "text", "value": "World's first electronic stock market (1971)" }, "uid": "1pnnzmxu62bzr" }, { "id": "pair-recall-sec", "shape": "pair", "tags": [ "institutions", "recall" ], "sideA": { "modality": "text", "value": "SEC" }, "sideB": { "modality": "text", "value": "Created in 1934 after the 1929 crash" }, "uid": "w8lzmo1lo51oi" }, { "id": "pair-recall-rule72", "shape": "pair", "tags": [ "concepts-metrics", "recall" ], "sideA": { "modality": "text", "value": "Rule of 72" }, "sideB": { "modality": "text", "value": "72 ÷ return = years to double your money" }, "uid": "1jz40u0izb57g" }, { "id": "pair-recall-margin", "shape": "pair", "tags": [ "concepts-metrics", "recall" ], "sideA": { "modality": "text", "value": "Margin of safety" }, "sideB": { "modality": "text", "value": "Buy well below intrinsic value" }, "uid": "1lxh9qqvynje2" }, { "id": "pair-recall-fcf", "shape": "pair", "tags": [ "concepts-metrics", "recall" ], "sideA": { "modality": "text", "value": "Free cash flow" }, "sideB": { "modality": "text", "value": "Operating cash flow minus capital expenditures" }, "uid": "1y8evyd5st43z" }, { "id": "pair-recall-dca", "shape": "pair", "tags": [ "strategy-people", "recall" ], "sideA": { "modality": "text", "value": "Dollar-cost averaging" }, "sideB": { "modality": "text", "value": "Invest a fixed amount at regular intervals" }, "uid": "1sbeutv1fpyz23" }, { "id": "pair-recall-mag7", "shape": "pair", "tags": [ "strategy-people", "recall" ], "sideA": { "modality": "text", "value": "Magnificent Seven" }, "sideB": { "modality": "text", "value": "Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, Tesla" }, "uid": "a1lc87mpfv0" }, { "id": "pair-recall-roth", "shape": "pair", "tags": [ "strategy-people", "recall" ], "sideA": { "modality": "text", "value": "Roth IRA" }, "sideB": { "modality": "text", "value": "Tax-free growth and withdrawals" }, "uid": "e8i0q113qqvwp" }, { "id": "pair-recall-moat", "shape": "pair", "tags": [ "concepts-metrics", "recall" ], "sideA": { "modality": "text", "value": "Economic moat" }, "sideB": { "modality": "text", "value": "A durable competitive advantage" }, "uid": "kvsfqglaii3w" }, { "id": "pair-recall-pe", "shape": "pair", "tags": [ "concepts-metrics", "recall", "metrics" ], "sideA": { "modality": "text", "value": "P/E ratio" }, "sideB": { "modality": "text", "value": "Stock price divided by earnings per share" }, "uid": "v7ltxz1qaud7h" }, { "id": "pair-recall-buffett", "shape": "pair", "tags": [ "strategy-people", "recall", "value-investing" ], "sideA": { "modality": "text", "value": "Warren Buffett" }, "sideB": { "modality": "text", "value": "Graham's student; chairman of Berkshire Hathaway" }, "uid": "1wop1fwzoqa5" }, { "id": "cmp-compound-curve", "shape": "comparison", "prompt": "Which growth curve shows compound interest over a 30-year horizon?", "correct": { "imagePrompt": "Schematic flat-vector line chart on a white background. X axis labeled 'Years 0 to 30' with tick marks every 5 years. Y axis labeled 'Portfolio value'. A single stone-gray curve starts at the origin, rises slowly for the first decade, then bends upward into a steepening exponential sweep that ends near the top-right corner. Thin gridlines, no annotations, no data labels.", "imageSearchTerm": "compound growth exponential curve", "caption": "Curve starts flat, then bends steeply upward" }, "incorrect": { "imagePrompt": "Schematic flat-vector line chart on a white background. X axis labeled 'Years 0 to 30' with tick marks every 5 years. Y axis labeled 'Portfolio value'. A single stone-gray straight line ascends at a constant slope from the origin to the upper-right corner. Thin gridlines, no annotations, no data labels.", "imageSearchTerm": "linear growth straight line chart", "caption": "Straight line rising at a constant slope" }, "explanation": "Compound interest grows on itself, producing an upward-bending exponential curve. A straight line represents simple interest, where only the original principal earns each period.", "tags": [ "compounding", "rule-of-72" ], "uid": "u0glcy1fltlac" }, { "id": "cmp-rule-of-72", "shape": "comparison", "prompt": "Which formula correctly applies the Rule of 72 to estimate doubling time at a given annual rate?", "correct": { "imagePrompt": "Schematic flat-vector formula card on a white background. A single equation displayed in large stone-gray serif type, centered: 'Years to double ≈ 72 ÷ Annual rate (%)'. Below it a worked example reads 'At 8% → 72 ÷ 8 = 9 years'. Thin border around the card, minimal styling, no annotations or checkmarks.", "imageSearchTerm": "rule of 72 formula", "caption": "Years to double ≈ 72 ÷ annual rate (%)" }, "incorrect": { "imagePrompt": "Schematic flat-vector formula card on a white background. A single equation displayed in large stone-gray serif type, centered: 'Years to double ≈ Annual rate (%) ÷ 72'. Below it a worked example reads 'At 8% → 8 ÷ 72 = 0.11 years'. Thin border around the card, minimal styling, no annotations or checkmarks.", "imageSearchTerm": "rule of 72 inverse formula", "caption": "Years to double ≈ annual rate (%) ÷ 72" }, "explanation": "The Rule of 72 estimates doubling time by dividing 72 by the annual percentage rate. At 8% per year, money doubles in roughly 72 ÷ 8 = 9 years.", "tags": [ "compounding", "rule-of-72" ], "uid": "1im33ro1wo07cm" }, { "id": "cmp-reinvest-dividends", "shape": "comparison", "prompt": "Which two long-run portfolio paths illustrate the effect of reinvesting dividends versus taking them as cash?", "correct": { "imagePrompt": "Schematic flat-vector line chart on a white background. X axis labeled 'Years 0 to 30'. Y axis labeled 'Portfolio value'. Two stone-gray curves both start at the same origin and rise. The upper curve bends sharply upward in a steepening exponential sweep and is labeled 'Dividends reinvested'. The lower curve rises along a much gentler, flatter path and is labeled 'Dividends taken as cash'. Thin gridlines, no annotations beyond the two labels.", "imageSearchTerm": "dividend reinvestment growth chart", "caption": "Upper curve: dividends reinvested; lower: taken as cash" }, "incorrect": { "imagePrompt": "Schematic flat-vector line chart on a white background. X axis labeled 'Years 0 to 30'. Y axis labeled 'Portfolio value'. Two stone-gray curves start at the same origin and rise. The upper curve bends sharply upward in a steepening exponential sweep and is labeled 'Dividends taken as cash'. The lower curve rises along a much gentler, flatter path and is labeled 'Dividends reinvested'. Thin gridlines, no annotations beyond the two labels.", "imageSearchTerm": "dividend cash payout chart", "caption": "Upper curve: dividends taken as cash; lower: reinvested" }, "explanation": "Reinvesting dividends buys more shares that themselves pay dividends, compounding the growth. Taking dividends as cash strips the compounding engine and produces the flatter path.", "tags": [ "compounding", "dividend" ], "uid": "q3965z1vpw14l" }, { "id": "proc-brokerage-open", "shape": "procedure", "tags": [ "procedure", "how-to" ], "goal": "Open a taxable brokerage account", "steps": [ "Pick a major broker (Fidelity, Schwab, Vanguard) and start the application online.", "Provide your SSN, address, and employment info so the broker can complete its legally required identity verification (KYC/AML).", "Link an external bank account for ACH funding using routing and account numbers.", "Set up two-factor authentication and recovery options.", "Initiate a first ACH transfer — settlement usually takes 1–3 business days.", "Once funded, place your first buy order using a market or limit order." ], "uid": "cj9c7vcxvav" }, { "id": "proc-evaluate-etf", "shape": "procedure", "tags": [ "procedure", "how-to" ], "goal": "Evaluate a stock-index ETF before buying", "steps": [ "Read the prospectus or ETF fact sheet, focusing on the expense ratio.", "Verify the underlying index (S&P 500, Russell 1000, MSCI World, etc.).", "Check the assets under management — under $100M flags higher closure risk.", "Compare the 5-year and 10-year returns to the index benchmark.", "Look at the bid-ask spread and average daily volume for liquidity.", "Confirm dividend policy (reinvest vs distribute) and tax efficiency." ], "uid": "1mvsw3tpeva7n" }, { "id": "proc-dca-setup", "shape": "procedure", "tags": [ "procedure", "how-to" ], "goal": "Set up an automated dollar-cost averaging plan", "steps": [ "Decide on a fixed dollar amount per month (e.g. $500).", "Pick the target asset — usually a broad-market ETF.", "Schedule an automatic transfer from your bank to the brokerage on payday.", "Enable an auto-investment rule on the brokerage to buy the target ETF on settlement.", "Set a quarterly calendar reminder to verify executions and rebalance if needed." ], "uid": "1imi5a31n72o9j" }, { "id": "proc-tax-loss-harvest", "shape": "procedure", "tags": [ "procedure", "how-to" ], "goal": "Execute a year-end tax-loss harvest", "steps": [ "Pull your year-to-date realized gains and unrealized losses from the broker.", "Identify positions with losses you can sell without disrupting your asset mix.", "Sell the losing position to realize the capital loss.", "Immediately buy a similar-but-not-identical replacement to avoid the 30-day wash-sale rule.", "After 31 days you can swap back into the original holding if you prefer.", "Use the realized losses to offset realized gains plus up to $3,000 of ordinary income." ], "uid": "1npxt8ssodozw" }, { "id": "concept-buffett", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "Warren Buffett", "clues": [ "This Midwestern American built one of history's great fortunes by buying whole companies and stocks to hold for decades.", "He turned a failing New England textile mill into a sprawling conglomerate of insurers, a railroad, and consumer brands.", "Nicknamed the 'Oracle of Omaha,' he still lives in the modest house he bought in 1958 and writes a famous yearly shareholder letter." ], "source": { "label": "Wikipedia: Warren Buffett", "url": "https://en.wikipedia.org/wiki/Warren_Buffett" }, "illustration": { "alt": "Portrait of investor Warren Buffett", "imagePrompt": "A clear, dignified portrait photograph of the investor Warren Buffett, head and shoulders, neutral background, documentary style", "imageSearchTerm": "Warren Buffett portrait", "kind": "photo", "credit": "Wikipedia — Warren Buffett · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Warren_Buffett", "subject": "Elderly man with round wire-frame glasses and thinning gray hair, dark pinstripe suit, red patterned tie, front-facing headshot from a TV-style interview — Warren Buffett; this is Wikipedia's own lead photo for his article.", "url": "https://cdn.recurxive.com/packs/investing-201/images/concept-buffett.webp" }, "uid": "kgxuaf1u8n26z" }, { "id": "concept-munger", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "Charlie Munger", "clues": [ "A lawyer-turned-investor, he spent decades as the witty second-in-command to a far more famous partner.", "He preached 'worldly wisdom' and a latticework of 'mental models,' and liked to solve problems by inverting them.", "Vice-chairman of Berkshire Hathaway until his death just shy of 100, he pushed buying wonderful businesses at fair prices." ], "source": { "label": "Wikipedia: Charlie Munger", "url": "https://en.wikipedia.org/wiki/Charlie_Munger" }, "illustration": { "alt": "Portrait of investor Charlie Munger", "imagePrompt": "A clear, dignified portrait photograph of the investor Charlie Munger, head and shoulders, neutral background, documentary style", "imageSearchTerm": "Charlie Munger portrait", "kind": "photo", "credit": "Wikipedia — Charlie Munger · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Charlie_Munger", "subject": "Head-and-shoulders portrait of an elderly man with a bald pate, wire-rim glasses, tweed jacket and purple patterned tie against a plain black background — matches Charlie Munger's well-documented appearance; Wikipedia's own lead image for 'Charlie Munger'.", "url": "https://cdn.recurxive.com/packs/investing-201/images/concept-munger.webp" }, "uid": "hqgqdn994kf" }, { "id": "concept-graham", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "Benjamin Graham", "clues": [ "An early-20th-century investor and Columbia professor, he is called the father of a disciplined approach to analyzing stocks.", "He taught the idea of a 'margin of safety' and a parable about a moody business partner who quotes you a price every day.", "His books 'Security Analysis' and 'The Intelligent Investor' became the foundational texts of value investing." ], "source": { "label": "Wikipedia: Benjamin Graham", "url": "https://en.wikipedia.org/wiki/Benjamin_Graham" }, "illustration": { "alt": "Portrait of economist Benjamin Graham", "imagePrompt": "A clear, dignified portrait photograph of the investor Benjamin Graham, head and shoulders, neutral background, documentary style", "imageSearchTerm": "Benjamin Graham portrait", "kind": "photo", "credit": "Wikipedia — Benjamin Graham · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Benjamin_Graham", "subject": "A 1950s black-and-white studio photo of a balding man in a dark suit and patterned tie, seated with a large open ledger/book on his lap — the Wikipedia lead photo for 'Benjamin Graham,' dated 23 March 1950, matching the investor/economist's known dates (1894-1976).", "url": "https://cdn.recurxive.com/packs/investing-201/images/concept-graham.webp" }, "uid": "qq87woktdko8" }, { "id": "concept-bogle", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "John Bogle", "clues": [ "This investor built a giant mutual-fund company around a radical idea: relentlessly minimizing fees for ordinary savers.", "He argued most active managers can't beat the market after costs, so investors should simply own the whole market.", "Nicknamed 'Saint Jack,' he launched the first index fund for everyday investors and founded Vanguard." ], "source": { "label": "Wikipedia: John Bogle", "url": "https://en.wikipedia.org/wiki/John_C._Bogle" }, "illustration": { "alt": "Portrait of Vanguard founder John Bogle", "imagePrompt": "A clear, dignified portrait photograph of the investor John Bogle, head and shoulders, neutral background, documentary style", "imageSearchTerm": "John Bogle portrait", "url": "https://cdn.recurxive.com/packs/investing-201/concept-bogle.jpg", "credit": "Wikimedia Commons (Wikipedia: John C. Bogle)", "creditUrl": "https://en.wikipedia.org/wiki/John_C._Bogle" }, "uid": "1ii24z6kxfucm" }, { "id": "concept-lynch", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "Peter Lynch", "clues": [ "He ran a flagship American stock fund in the 1980s and posted one of the best track records in the business.", "He urged ordinary people to 'invest in what you know' and to hunt for 'tenbaggers' — stocks that rise tenfold.", "Manager of Fidelity's Magellan Fund from 1977 to 1990, he wrote the classic 'One Up on Wall Street.'" ], "source": { "label": "Wikipedia: Peter Lynch", "url": "https://en.wikipedia.org/wiki/Peter_Lynch" }, "uid": "kbgone13imw0q" }, { "id": "concept-dalio", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "Ray Dalio", "clues": [ "He started what became the world's largest hedge fund out of his New York apartment in the 1970s.", "He built a culture of 'radical transparency,' recording meetings and having employees rate one another in real time.", "Founder of Bridgewater Associates, he distilled his philosophy into the bestseller 'Principles.'" ], "source": { "label": "Wikipedia: Ray Dalio", "url": "https://en.wikipedia.org/wiki/Ray_Dalio" }, "illustration": { "alt": "Portrait of hedge-fund founder Ray Dalio", "imagePrompt": "A clear, dignified portrait photograph of the investor Ray Dalio, head and shoulders, neutral background, documentary style", "imageSearchTerm": "Ray Dalio portrait", "kind": "photo", "credit": "Wikipedia — Ray Dalio · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Ray_Dalio", "subject": "Wikipedia's lead/infobox photo of Ray Dalio: close-up, headset mic, dark cardigan, blue Web Summit backdrop with partial 'FO' (Forum) lettering.", "url": "https://cdn.recurxive.com/packs/investing-201/images/concept-dalio.webp" }, "uid": "1bix9m21sxr09k" }, { "id": "concept-soros", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "George Soros", "clues": [ "A Hungarian-born survivor of WWII, he became one of the most successful — and most political — macro investors ever.", "In 1992 his fund reportedly earned about a billion dollars in a single day by betting a major currency would be devalued.", "Dubbed 'the man who broke the Bank of England,' he later poured his fortune into the Open Society Foundations." ], "source": { "label": "Wikipedia: George Soros", "url": "https://en.wikipedia.org/wiki/George_Soros" }, "illustration": { "alt": "Portrait of investor George Soros", "imagePrompt": "A clear, dignified portrait photograph of the investor George Soros, head and shoulders, neutral background, documentary style", "imageSearchTerm": "George Soros portrait", "url": "https://cdn.recurxive.com/packs/investing-201/concept-soros.jpg", "credit": "Wikimedia Commons (Wikipedia: George Soros)", "creditUrl": "https://en.wikipedia.org/wiki/George_Soros" }, "uid": "19f5kl819zptw8" }, { "id": "concept-wood", "shape": "concept", "conceptKind": "person", "tags": [ "key-concept", "person", "investor" ], "name": "Cathie Wood", "clues": [ "She launched an investment firm in 2014 built entirely around 'disruptive innovation' and fast-growing technology.", "Her flagship fund soared during the pandemic on bold bets on electric cars and genomics, then tumbled as rates rose.", "She runs ARK Invest, publishes her trades daily, and is among the most vocal Tesla and Bitcoin bulls." ], "source": { "label": "Wikipedia: Cathie Wood", "url": "https://en.wikipedia.org/wiki/Cathie_Wood" }, "illustration": { "alt": "Portrait of investor Cathie Wood", "imagePrompt": "A clear, dignified portrait photograph of the investor Cathie Wood, head and shoulders, neutral background, documentary style", "imageSearchTerm": "Cathie Wood portrait", "url": "https://cdn.recurxive.com/packs/investing-201/concept-wood.jpg", "credit": "Wikimedia Commons (Wikipedia: Cathie Wood)", "creditUrl": "https://en.wikipedia.org/wiki/Cathie_Wood" }, "uid": "8fnxqfka9kwf" }, { "id": "scrapbook-investing-201-1", "shape": "fact", "factVariant": "scrapbook", "title": "The Crash of 1929", "body": "A collage overview of the 1929 stock market crash", "tags": [ "scrapbook", "overview" ], "illustration": { "kind": "scrapbook", "alt": "A collage overview of the 1929 stock market crash", "imagePrompt": "Craft a cheerful scrapbook poster depicting the dramatic events of the 1929 stock market crash. Include vibrant torn-paper layers featuring iconic imagery from the era, such as old stock ticker tapes and distressed investing newspapers. Hand-lettered title: 'The Crash of 1929' at the top. Add doodles of falling stocks, arrows pointing downwards, and small labels highlighting key aspects like 'Black Tuesday' and 'Great Depression'. Use a warm color palette with soft yellows and browns, ensuring readable text and a focused layout.", "imageSearchTerm": "investing-201 scrapbook poster", "credit": "AI-generated (gpt-image-1)", "url": "https://cdn.recurxive.com/packs/investing-201/generated/scrapbook-1.webp" }, "uid": "w60map15g25zj" }, { "id": "scrapbook-investing-201-2", "shape": "fact", "factVariant": "scrapbook", "title": "Value Investing Basics", "body": "An engaging overview of value investing principles", "tags": [ "scrapbook", "overview" ], "illustration": { "kind": "scrapbook", "alt": "An engaging overview of value investing principles", "imagePrompt": "Design a scrapbook poster that introduces the concept of value investing. Feature a prominent image of Benjamin Graham and Warren Buffett, surrounded by cut-out visuals of stocks and financial statements. Hand-lettered title: 'Value Investing Basics' at the top. Include playful doodles of magnifying glasses examining company charts and arrows pointing to labels like 'Intrinsic Value' and 'Margin of Safety'. Utilize a warm color scheme with greens and blues, ensuring the composition is clear and inviting, with breathing space around the text.", "imageSearchTerm": "investing-201 scrapbook poster", "credit": "AI-generated (gpt-image-1)", "url": "https://cdn.recurxive.com/packs/investing-201/generated/scrapbook-2.webp" }, "uid": "12iofyzqwwsy9" }, { "id": "q-inv-philadelphia-year", "shape": "numeric", "tags": [ "history", "exchange" ], "prompt": { "modality": "text", "value": "In what year was the Philadelphia Stock Exchange founded?" }, "value": 1790, "unit": "year", "tolerance": 0, "uid": "ojefi811swk14" }, { "id": "q-inv-first-listed", "shape": "pair", "tags": [ "history", "exchange" ], "sideA": { "modality": "text", "value": "First company listed on the NYSE" }, "sideB": { "modality": "text", "value": "The Bank of New York", "short": "Bank of New York" }, "uid": "199nwaa145fu" }, { "id": "q-inv-wall-origin", "shape": "pair", "tags": [ "history", "exchange" ], "sideA": { "modality": "text", "value": "Origin of the name Wall Street" }, "sideB": { "modality": "text", "value": "A 12-foot wooden wall Dutch settlers built in 1653", "short": "A 1653 Dutch defensive wall" }, "uid": "1dzoradgjqecb" }, { "id": "q-inv-compound-3-5m", "shape": "pair", "tags": [ "foundation", "compounding" ], "sideA": { "modality": "text", "value": "Result of adding $500 a month to the $10,000 example" }, "sideB": { "modality": "text", "value": "An ending value above $3.5 million by age 65", "short": "Over $3.5 million by 65" }, "uid": "do92v56xh81v" }, { "id": "q-inv-sp500-1957", "shape": "pair", "tags": [ "foundation", "compounding" ], "sideA": { "modality": "text", "value": "Value by 2025 of $100 invested in the S&P 500 in 1957" }, "sideB": { "modality": "text", "value": "About $106,000 in nominal terms", "short": "About $106,000 nominal" }, "uid": "k3lmvcvg7ibg" }, { "id": "concept-investing-201-stock", "shape": "concept", "tags": [ "key-concept", "thing" ], "conceptKind": "thing", "name": "Stock", "clues": [ "A financial instrument representing ownership in a company.", "Investors can earn returns through price appreciation or dividends.", "Common examples include shares of Apple and Microsoft." ], "uid": "13b95dp1rxwq65" }, { "id": "concept-investing-201-bond", "shape": "concept", "tags": [ "key-concept", "thing" ], "conceptKind": "thing", "name": "Bond", "clues": [ "A fixed-income investment representing a loan made by an investor.", "The issuer pays the holder a fixed rate of interest — the coupon — over the security's life.", "U.S. Treasury issues of this type are considered nearly risk-free." ], "uid": "soo0wu44maf2" }, { "id": "concept-investing-201-reit", "shape": "concept", "tags": [ "key-concept", "thing" ], "conceptKind": "thing", "name": "REIT", "clues": [ "A company that owns, operates, or finances income-generating real estate.", "Required by law to distribute a significant portion of income as dividends.", "Investors can buy shares of these trusts on stock exchanges." ], "uid": "1q2dvixfndbuj" }, { "id": "concept-investing-201-ipo", "shape": "concept", "tags": [ "key-concept", "thing" ], "conceptKind": "thing", "name": "IPO", "clues": [ "The process through which a private company offers shares to the public for the first time.", "Often used to raise capital for expansion or growth.", "The Nasdaq exchange has hosted many famous tech companies going public, from Netscape in 1995 to Meta in 2012." ], "uid": "itlmtt1ufvegb" }, { "id": "concept-investing-201-dividend", "shape": "concept", "tags": [ "key-concept", "thing" ], "conceptKind": "thing", "name": "Dividend", "clues": [ "A portion of a company's earnings distributed to shareholders.", "Typically paid on a regular schedule, such as quarterly.", "Common in established companies like utilities and consumer staples." ], "uid": "2wip5882903c" }, { "id": "concept-investing-201-margin-of-safety", "shape": "concept", "tags": [ "key-concept", "thing" ], "conceptKind": "thing", "name": "Margin of Safety", "clues": [ "A principle in value investing that involves buying below intrinsic value.", "Provides a buffer against estimation errors in valuation.", "Disciplined investors typically seek a margin of at least 30%." ], "uid": "1ekom6rjb8m87" }, { "id": "concept-investing-201-economic-moat", "shape": "concept", "tags": [ "key-concept", "thing" ], "conceptKind": "thing", "name": "Economic Moat", "clues": [ "A competitive advantage that protects a company's market position.", "Can arise from factors like brand loyalty or cost advantages.", "Warren Buffett emphasizes its importance for long-term success." ], "uid": "1kbn0e41d3z98u" }, { "id": "concept-investing-201-the-crash-of-1929", "shape": "concept", "tags": [ "key-concept", "event" ], "conceptKind": "event", "name": "The Crash of 1929", "clues": [ "This event marked the beginning of the Great Depression in the United States.", "It involved a significant drop in stock prices over a few days in late October.", "The Dow Jones fell nearly 25% in just two days, triggering widespread economic fallout." ], "uid": "2v5nlh1yyihmf" }, { "id": "concept-investing-201-black-monday-1987", "shape": "concept", "tags": [ "key-concept", "event" ], "conceptKind": "event", "name": "Black Monday, 1987", "clues": [ "This event is known for being the largest one-day percentage drop in stock market history.", "It occurred in October and was attributed to automated trading systems.", "On this day, the Dow Jones fell by 22.6% in a single session." ], "uid": "11l13p212gkcta" }, { "id": "concept-investing-201-the-dot-com-bubble-burst", "shape": "concept", "tags": [ "key-concept", "event" ], "conceptKind": "event", "name": "The Dot-Com Bubble Burst", "clues": [ "This event involved a dramatic decline in technology stock prices in the early 2000s.", "It was characterized by excessive investment in internet companies with unsustainable business models.", "The Nasdaq lost nearly 80% of its value between March 2000 and late 2002." ], "uid": "1edvqr032yers" }, { "id": "concept-investing-201-the-2008-financial-crisis", "shape": "concept", "tags": [ "key-concept", "event" ], "conceptKind": "event", "name": "The 2008 Financial Crisis", "clues": [ "This event was triggered by the collapse of the housing market and risky mortgage practices.", "It led to the largest bankruptcy in U.S. history and significant market downturns.", "The Dow Jones fell over 50% from its peak, resulting in major regulatory changes." ], "uid": "fswz0k48pbw" }, { "id": "concept-investing-201-the-covid-19-crash", "shape": "concept", "tags": [ "key-concept", "event" ], "conceptKind": "event", "name": "The COVID-19 Crash", "clues": [ "This event marked the fastest bear market in history, occurring in early 2020.", "It was driven by the global pandemic and resulted in unprecedented government stimulus measures.", "The S&P 500 fell 34% in just 33 days before rebounding to new highs." ], "uid": "1m9p0lm67vgbe" }, { "id": "concept-investing-201-the-sec-formation", "shape": "concept", "tags": [ "key-concept", "event" ], "conceptKind": "event", "name": "The SEC Formation", "clues": [ "This event established a federal agency aimed at regulating the securities industry.", "It was a direct response to a major stock market crash in the late 1920s.", "The agency was created on June 6, 1934, to protect investors and maintain market integrity." ], "uid": "a5qfo31i2yhq3" }, { "id": "concept-investing-201-the-glass-steagall-act", "shape": "concept", "tags": [ "key-concept", "event" ], "conceptKind": "event", "name": "The Glass-Steagall Act", "clues": [ "This event established a separation between commercial and investment banking in the U.S.", "It was enacted during the Great Depression to prevent excessive risk-taking by banks.", "The act was largely repealed in 1999, leading to increased scrutiny after the 2008 crisis." ], "uid": "1pt9jbm1bbrm1m" }, { "id": "mcq-rw-l1-p2-nasdaq", "shape": "mcq", "tags": [ "nasdaq", "dot-com", "market-history" ], "prompt": { "modality": "text", "value": "After peaking in March 2000, roughly how much of its value did the Nasdaq Composite lose during the dot-com collapse over the following two and a half years?" }, "options": [ { "modality": "text", "value": "Nearly 80%" }, { "modality": "text", "value": "Nearly 95%" }, { "modality": "text", "value": "About 20%" }, { "modality": "text", "value": "Roughly 50%" } ], "correctIndex": 0, "explanation": "The Nasdaq Composite peaked in March 2000, then lost nearly 80% of its value over the next two and a half years as the dot-com bubble burst.", "uid": "tk2e9ky2lzas" }, { "id": "mcq-rw-l2-p1-sec", "shape": "mcq", "tags": [ "glass-steagall", "banking-regulation", "financial-laws" ], "prompt": { "modality": "text", "value": "Which foundational 1933 law walled off speculation from ordinary deposits by separating investment banking from commercial banking?" }, "options": [ { "modality": "text", "value": "The Dodd-Frank Act" }, { "modality": "text", "value": "The Securities Exchange Act of 1934" }, { "modality": "text", "value": "The Securities Act of 1933" }, { "modality": "text", "value": "The Glass-Steagall Act" } ], "correctIndex": 3, "explanation": "Glass-Steagall separated investment banking from commercial banking. It stood for decades until its largely repeal in 1999 — a change heavily scrutinized after the 2008 crisis.", "uid": "imfrgr1f4amhz" }, { "id": "mcq-rw-l3-p1-equities", "shape": "mcq", "tags": [ "equities", "stock-types", "cyclical" ], "prompt": { "modality": "text", "value": "Automakers and airlines, whose fortunes rise and fall with the broader economy, are classic examples of which kind of stock?" }, "options": [ { "modality": "text", "value": "Cyclical stocks" }, { "modality": "text", "value": "Growth stocks" }, { "modality": "text", "value": "Value stocks" }, { "modality": "text", "value": "Defensive stocks" } ], "correctIndex": 0, "explanation": "Cyclical stocks (automakers, airlines) track the economic cycle — booming in expansions and slumping in downturns — the opposite of defensive stocks like utilities and consumer staples that stay stable regardless.", "uid": "1lon4251druce9" }, { "id": "mcq-rw-l3-p2-bonds", "shape": "mcq", "tags": [ "bonds", "yield-curve", "recession" ], "prompt": { "modality": "text", "value": "An inverted yield curve — when short-term bond yields rise above long-term yields — has historically been one of the most reliable warnings of what?" }, "options": [ { "modality": "text", "value": "A sovereign debt default" }, { "modality": "text", "value": "An imminent stock-market bubble" }, { "modality": "text", "value": "Surging inflation" }, { "modality": "text", "value": "An approaching recession" } ], "correctIndex": 3, "explanation": "Normally long-term bonds yield more than short-term ones; when that relationship flips (an inverted yield curve), it has historically been among the most reliable signals of a coming recession — though investors cross-check it with other indicators.", "uid": "1448g4g1gwt3wy" }, { "id": "mcq-rw-l3-p3-alt", "shape": "mcq", "tags": [ "reit", "real-estate", "dividends" ], "prompt": { "modality": "text", "value": "By law, what minimum share of its taxable income must a REIT distribute to shareholders as dividends?" }, "options": [ { "modality": "text", "value": "75%" }, { "modality": "text", "value": "100%" }, { "modality": "text", "value": "50%" }, { "modality": "text", "value": "90%" } ], "correctIndex": 3, "explanation": "A Real Estate Investment Trust (REIT) must distribute at least 90% of taxable income as dividends — the mandate that makes REITs a favorite of income-focused investors seeking real-estate exposure without owning property directly.", "uid": "1n2w50emwk08k" }, { "id": "mcq-rw-l4-p1-graham", "shape": "mcq", "tags": [ "buffett", "munger", "value-investing" ], "prompt": { "modality": "text", "value": "Guided by Charlie Munger, how did Warren Buffett's philosophy evolve beyond his early bargain-hunting days?" }, "options": [ { "modality": "text", "value": "Buy a wonderful company at a fair price rather than a fair company at a wonderful price", "short": "Wonderful company, fair price" }, { "modality": "text", "value": "Buy a fair company at a wonderful price rather than a wonderful company at a fair price", "short": "Fair company at wonderful price" }, { "modality": "text", "value": "Only buy stocks trading below their net asset value", "short": "Only buy below net asset value" }, { "modality": "text", "value": "Simply buy and hold a broad market index forever", "short": "Buy and hold a broad index" } ], "correctIndex": 0, "explanation": "Buffett began buying below net asset value, but with Munger evolved toward buying 'a wonderful company at a fair price rather than a fair company at a wonderful price' — prizing business quality over sheer cheapness.", "uid": "zqkjgu1el36dg" }, { "id": "mcq-rw-l4-p2-margin", "shape": "mcq", "tags": [ "roic", "profitability", "value-investing" ], "prompt": { "modality": "text", "value": "How is Return on Invested Capital (ROIC) calculated?" }, "options": [ { "modality": "text", "value": "Revenue divided by invested capital", "short": "Revenue ÷ invested capital" }, { "modality": "text", "value": "NOPAT (net operating profit after tax) divided by invested capital", "short": "NOPAT ÷ invested capital" }, { "modality": "text", "value": "Net income divided by total assets", "short": "Net income ÷ total assets" }, { "modality": "text", "value": "Net income divided by shareholders' equity", "short": "Net income ÷ shareholder equity" } ], "correctIndex": 1, "explanation": "ROIC = NOPAT (net operating profit after tax) divided by invested capital, measuring how efficiently a company turns capital into profit. Net income over assets is ROA and net income over equity is ROE — related but distinct metrics.", "uid": "1gsu5wec12zg" }, { "id": "mcq-rw-l5-p1-income", "shape": "mcq", "tags": [ "income-statement", "revenue-growth" ], "prompt": { "modality": "text", "value": "According to the guide, which income-statement figure do many investors treat as the single most important number on the page?" }, "options": [ { "modality": "text", "value": "Net income (the bottom line)", "short": "Net income, the bottom line" }, { "modality": "text", "value": "Year-over-year revenue growth rate", "short": "Revenue growth from year to year" }, { "modality": "text", "value": "Gross margin", "short": "Gross margin on sales" }, { "modality": "text", "value": "EBITDA", "short": "EBITDA operating earnings" } ], "correctIndex": 1, "explanation": "The guide calls year-over-year revenue growth 'the single most important number' for many investors — watched even more closely than the bottom line, because it signals how fast the business is actually expanding.", "uid": "52c9gs1g31kpi" }, { "id": "mcq-rw-l5-p2-balance", "shape": "mcq", "tags": [ "balance-sheet", "current-assets" ], "prompt": { "modality": "text", "value": "On the balance sheet, what makes an asset a 'current' asset rather than a long-term one?" }, "options": [ { "modality": "text", "value": "It earns interest for the company", "short": "It earns interest for the firm" }, { "modality": "text", "value": "It also appears on the income statement", "short": "It appears on the income statement" }, { "modality": "text", "value": "It can be converted to cash within a year", "short": "It turns into cash within one year" }, { "modality": "text", "value": "It is owned outright rather than leased", "short": "It is owned rather than leased" } ], "correctIndex": 2, "explanation": "Current assets — cash, receivables, inventory — are those convertible to cash within a year; property, equipment, and goodwill are long-term. The split is what the current ratio uses to gauge short-term liquidity.", "uid": "1yx6cuw1d3e74e" }, { "id": "mcq-rw-l5-p3-cashflow", "shape": "mcq", "tags": [ "cash-flow", "free-cash-flow" ], "prompt": { "modality": "text", "value": "The guide says strong net income paired with weak free cash flow should be read as what?" }, "options": [ { "modality": "text", "value": "A sign of strong pricing power" }, { "modality": "text", "value": "A warning sign worth investigating" }, { "modality": "text", "value": "Proof the earnings are high quality" }, { "modality": "text", "value": "Normal for any fast-growing firm" } ], "correctIndex": 1, "explanation": "When reported profit looks strong but FCF doesn't, that divergence is 'a warning worth heeding.' Cash is harder to fake than accounting earnings, so the gap suggests the profit may not be backed by real cash.", "uid": "9mlynwchmbho" }, { "id": "mcq-rw-l6-p1-concepts", "shape": "mcq", "tags": [ "dcf", "wacc" ], "prompt": { "modality": "text", "value": "The guide says two variables 'do the heavy lifting' in a DCF. If one is the terminal value, what is the other?" }, "options": [ { "modality": "text", "value": "The current market stock price" }, { "modality": "text", "value": "The number of shares outstanding" }, { "modality": "text", "value": "The dividend yield" }, { "modality": "text", "value": "The discount rate (WACC)" } ], "correctIndex": 3, "explanation": "A DCF hinges on two inputs: the terminal value and the discount rate r, typically the company's WACC. A higher WACC shrinks the present value of future cash flows; a lower one inflates it.", "uid": "fa3eax15ol07l" }, { "id": "mcq-rw-l7-p1-multiples", "shape": "mcq", "tags": [ "valuation-multiples", "price-to-sales" ], "prompt": { "modality": "text", "value": "For a high-growth company that isn't yet profitable, P/E breaks down. Which multiple does the guide name as the standard alternative?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "EV/EBITDA" }, { "modality": "text", "value": "P/S (Price-to-Sales)" }, { "modality": "text", "value": "P/B (Price-to-Book)" } ], "correctIndex": 2, "explanation": "With no earnings to divide by, P/E is useless — so P/S (market cap ÷ revenue) becomes the go-to for pre-profitable firms or ones whose earnings are temporarily depressed by heavy reinvestment.", "uid": "1f43yff1l9u98z" }, { "id": "mcq-rw-l8-p1-rule72", "shape": "mcq", "tags": [ "rule-of-72", "compounding" ], "prompt": { "modality": "text", "value": "By the Rule of 72, if someone promises to double your money in 3 years, what annual return are they implicitly claiming?" }, "options": [ { "modality": "text", "value": "About 36%" }, { "modality": "text", "value": "About 18%" }, { "modality": "text", "value": "About 24%" }, { "modality": "text", "value": "About 12%" } ], "correctIndex": 2, "explanation": "Run the rule backwards: 72 ÷ 3 years ≈ a 24% annual return. The guide flags this as a sanity check — a 24% promise is possible, but it should invite scrutiny rather than trust.", "uid": "w20o2pgkuh1x" }, { "id": "mcq-rw-l9-p1-passive", "shape": "mcq", "tags": [ "etfs", "index-funds" ], "prompt": { "modality": "text", "value": "Which ETF ticker tracks the small-cap Russell 2000 index?" }, "options": [ { "modality": "text", "value": "VTI" }, { "modality": "text", "value": "QQQ" }, { "modality": "text", "value": "SPY" }, { "modality": "text", "value": "IWM" } ], "correctIndex": 3, "explanation": "IWM tracks the small-cap Russell 2000. SPY tracks the S&P 500, QQQ the Nasdaq 100, and VTI the total U.S. stock market — a handful of tickers covers most of the market.", "uid": "1ycmuus1xniwv4" }, { "id": "mcq-rw-l9-p2-active", "shape": "mcq", "tags": [ "trading", "day-trading", "risk" ], "prompt": { "modality": "text", "value": "According to the lesson, what happens to most day traders?" }, "options": [ { "modality": "text", "value": "Most simply match the market's return" }, { "modality": "text", "value": "Most earn a reliable monthly income" }, { "modality": "text", "value": "Most lose money" }, { "modality": "text", "value": "Most beat index funds over time" } ], "correctIndex": 2, "explanation": "Day trading — buying and selling within a single session — is extremely high-risk, and the lesson stresses that most day traders lose money. It's a core reason time in the market beats timing the market.", "uid": "oesrralidazk" }, { "id": "mcq-rw-l10-p1-cycle", "shape": "mcq", "tags": [ "gics", "sectors" ], "prompt": { "modality": "text", "value": "Which of the following is NOT one of the 11 GICS sectors of the S&P 500?" }, "options": [ { "modality": "text", "value": "Real Estate" }, { "modality": "text", "value": "Transportation" }, { "modality": "text", "value": "Utilities" }, { "modality": "text", "value": "Materials" } ], "correctIndex": 1, "explanation": "The 11 GICS sectors include Utilities, Materials, and Real Estate. Transportation is not a standalone GICS sector — it falls under Industrials.", "uid": "mar9g8gnbius" }, { "id": "mcq-rw-l10-p2-phases", "shape": "mcq", "tags": [ "sector-rotation", "business-cycle" ], "prompt": { "modality": "text", "value": "In the mid cycle — steady growth after the early recovery — which sectors tend to lead?" }, "options": [ { "modality": "text", "value": "Financials, consumer discretionary, and real estate" }, { "modality": "text", "value": "Energy, materials, and consumer staples" }, { "modality": "text", "value": "Utilities, healthcare, and consumer staples" }, { "modality": "text", "value": "Technology, industrials, and communication services" } ], "correctIndex": 3, "explanation": "The mid cycle, marked by steady growth, favors technology, industrials, and communication services. Financials/discretionary/real estate lead the early cycle, energy/materials/staples the late cycle, and defensives lead in recession.", "uid": "1sc842f1423w4h" }, { "id": "mcq-rw-l11-p1-overview", "shape": "mcq", "tags": [ "magnificent-seven", "market-cap" ], "prompt": { "modality": "text", "value": "At their peak, the combined market capitalization of the Magnificent Seven has exceeded what?" }, "options": [ { "modality": "text", "value": "The combined GDP of the United States and China", "short": "US and China's combined GDP" }, { "modality": "text", "value": "The entire bond market of the European Union", "short": "The whole European Union bond market" }, { "modality": "text", "value": "The entire stock markets of the UK, Canada, and Japan combined", "short": "UK & Canada & Japan stock markets" }, { "modality": "text", "value": "The total value of all the world's gold", "short": "The value of all the world's gold" } ], "correctIndex": 2, "explanation": "At their peak the seven's combined market cap has topped the entire stock markets of the UK, Canada, and Japan combined — a scale that shows why owning a broad index is now a concentrated bet on them.", "uid": "1gk3lud1sjsm47" }, { "id": "mcq-rw-l11-p2-breakdown", "shape": "mcq", "tags": [ "magnificent-seven", "apple", "moats" ], "prompt": { "modality": "text", "value": "For Apple, which metric does the lesson single out as the one to watch?" }, "options": [ { "modality": "text", "value": "Mac and iPad shipment totals" }, { "modality": "text", "value": "Services revenue growth" }, { "modality": "text", "value": "App Store download counts" }, { "modality": "text", "value": "iPhone unit sales" } ], "correctIndex": 1, "explanation": "Apple's moat is ecosystem lock-in and brand loyalty, and the metric the lesson flags is Services revenue growth — the recurring, high-margin layer built on top of its hardware base.", "uid": "1f2p9fgext4by" }, { "id": "mcq-rw-l12-p1-basics", "shape": "mcq", "tags": [ "market-basics", "bull-bear", "correction" ], "prompt": { "modality": "text", "value": "By the definitions in this lesson, what separates a market correction from a bear market?" }, "options": [ { "modality": "text", "value": "A correction is a 5–10% drop; a bear market is any drop over 10%", "short": "Correction 5–10%; bear market >10%" }, { "modality": "text", "value": "They begin at the same 20% threshold and differ only in duration", "short": "Same 20% threshold; differ in duration" }, { "modality": "text", "value": "A correction is a 20%+ drop; a bear market is a 10–20% drop", "short": "Correction 20%+; bear market 10–20%" }, { "modality": "text", "value": "A correction is a 10–20% drop; a bear market is a 20%+ drop", "short": "Correction 10–20%; bear market 20%+" } ], "correctIndex": 3, "explanation": "A correction is a 10–20% decline from a recent peak — normal and frequent. A bear market is steeper: a 20%+ decline from a recent high, marked by pessimism.", "uid": "ucbf981pm9qys" }, { "id": "mcq-rw-l12-p2-advanced", "shape": "mcq", "tags": [ "basis-points", "interest-rates", "vocabulary" ], "prompt": { "modality": "text", "value": "If a central bank raises interest rates by 75 basis points, how large is that increase?" }, "options": [ { "modality": "text", "value": "7.5 percentage points" }, { "modality": "text", "value": "75 percentage points" }, { "modality": "text", "value": "0.075 percentage points" }, { "modality": "text", "value": "0.75 percentage points" } ], "correctIndex": 3, "explanation": "100 basis points equal 1%, so 75 basis points = 0.75 percentage points. Basis points are the standard precision unit for discussing interest-rate and margin changes.", "uid": "1gdpbj9u14awb" }, { "id": "mcq-rw-l12-p3-indexes", "shape": "mcq", "tags": [ "indexes", "dow-jones", "weighting" ], "prompt": { "modality": "text", "value": "In the price-weighted Dow Jones Industrial Average, which stock moves the index the most?" }, "options": [ { "modality": "text", "value": "The one with the largest total market cap" }, { "modality": "text", "value": "The one with the most shares outstanding" }, { "modality": "text", "value": "The one with the highest dividend yield" }, { "modality": "text", "value": "The one with the highest share price" } ], "correctIndex": 3, "explanation": "The Dow is price-weighted, so a high share price — not company size — gives a stock the most sway. A smaller firm with a pricey share can move the Dow more than a far larger company with a low share price.", "uid": "wtgy6zuhdpq5" }, { "id": "mcq-rw-l13-p1-future", "shape": "mcq", "tags": [ "cbdc", "digital-currency", "future-of-finance" ], "prompt": { "modality": "text", "value": "The lesson notes that one nation's central-bank digital currency (CBDC) is already operational. Which one?" }, "options": [ { "modality": "text", "value": "China (the digital yuan)" }, { "modality": "text", "value": "The United States (FedNow)" }, { "modality": "text", "value": "Japan (digital yen)" }, { "modality": "text", "value": "The United Kingdom (digital pound)" } ], "correctIndex": 0, "explanation": "Over 130 countries are exploring CBDCs, but China's digital yuan is already live. The U.S. FedNow is an instant-payments system, not a CBDC — a common trap.", "uid": "t7hpw51f57io3" }, { "id": "mcq-rw-l14-p1-portfolio", "shape": "mcq", "tags": [ "portfolio", "asset-allocation", "risk" ], "prompt": { "modality": "text", "value": "In the portfolio pyramid, what belongs at the top layer — just 5–10% of the portfolio?" }, "options": [ { "modality": "text", "value": "High-quality individual stocks with durable moats", "short": "Quality stocks with durable moats" }, { "modality": "text", "value": "Total-market and S&P 500 index funds", "short": "Total-market and S&P 500 funds" }, { "modality": "text", "value": "Higher-risk bets like growth stocks, crypto, and speculation", "short": "Growth stocks and crypto bets" }, { "modality": "text", "value": "Investment-grade government and corporate bonds", "short": "Government and corporate bonds" } ], "correctIndex": 2, "explanation": "The pyramid's narrow top (5–10%) is speculation you can afford to lose entirely. Index funds form the 60–70% base and quality individual stocks the 20–30% middle, so the base carries the portfolio while the top adds upside.", "uid": "xyvn7ryo50cf" }, { "id": "mcq-rw-l14-p2-compound", "shape": "mcq", "tags": [ "compounding", "inflation", "sp500" ], "prompt": { "modality": "text", "value": "A $100 investment in the S&P 500 in 1957 grew to about $106,000 by 2025 in nominal terms. Adjusted for inflation, what is that worth in real purchasing power?" }, "options": [ { "modality": "text", "value": "About $30,000" }, { "modality": "text", "value": "About $106,000" }, { "modality": "text", "value": "About $453,000" }, { "modality": "text", "value": "About $9,700" } ], "correctIndex": 3, "explanation": "Adjusted for inflation, the $106,000 nominal figure is only about $9,700 in real purchasing power. Nominal gains flatter; inflation quietly erodes them — which is why money must stay invested and working.", "uid": "1ek5sve1ybpeoe" }, { "id": "mcq-rw-l15-p1-recall", "shape": "mcq", "tags": [ "rule-of-72", "compounding", "recall" ], "prompt": { "modality": "text", "value": "Using the Rule of 72, about how long does it take to double your money at a 9% annual return?" }, "options": [ { "modality": "text", "value": "About 6 years" }, { "modality": "text", "value": "About 8 years" }, { "modality": "text", "value": "About 12 years" }, { "modality": "text", "value": "About 9 years" } ], "correctIndex": 1, "explanation": "The Rule of 72 divides 72 by the annual return to estimate doubling time: 72 ÷ 9 = 8 years. It's the fastest mental shortcut for the power of compounding.", "uid": "1xbkes91ac9k4p" }, { "id": "mcq-rw-l16-p1-investors", "shape": "mcq", "tags": [ "george-soros", "macro-investing", "legendary-investors" ], "prompt": { "modality": "text", "value": "Which legendary investor earned the title 'the man who broke the Bank of England' after betting against the British pound in 1992?" }, "options": [ { "modality": "text", "value": "George Soros" }, { "modality": "text", "value": "Warren Buffett" }, { "modality": "text", "value": "Ray Dalio" }, { "modality": "text", "value": "Peter Lynch, Magellan Fund" } ], "correctIndex": 0, "explanation": "Soros, a macro investor, made roughly a billion dollars in a single day in 1992 by betting the British pound would be forced to devalue — the trade that cemented his name.", "uid": "1lgnpyxq865on" }, { "id": "mcq-rw-lc-people", "shape": "mcq", "tags": [ "john-bogle", "index-funds", "vanguard" ], "prompt": { "modality": "text", "value": "Which investor, nicknamed 'Saint Jack,' founded Vanguard and launched the first index fund for everyday investors?" }, "options": [ { "modality": "text", "value": "John Bogle" }, { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "Ray Dalio" }, { "modality": "text", "value": "Warren Buffett" } ], "correctIndex": 0, "explanation": "Bogle argued most active managers can't beat the market after costs, so ordinary savers should simply own the whole market cheaply. He founded Vanguard and created the first index fund for everyday investors.", "uid": "1xgruzz1i5jw97" }, { "id": "mcq-rw-lc-things", "shape": "mcq", "tags": [ "margin-of-safety", "value-investing" ], "prompt": { "modality": "text", "value": "In value investing, what minimum margin of safety do disciplined investors typically seek when buying below a stock's intrinsic value?" }, "options": [ { "modality": "text", "value": "At least 50%" }, { "modality": "text", "value": "At least 75%" }, { "modality": "text", "value": "At least 30%" }, { "modality": "text", "value": "At least 10%" } ], "correctIndex": 2, "explanation": "A margin of safety means buying below intrinsic value to buffer against errors in valuation. The guide notes disciplined value investors typically seek a margin of at least 30%.", "uid": "1n9ensjeqeh6f" }, { "id": "mcq-rw-lc-events", "shape": "mcq", "tags": [ "black-monday", "market-crashes" ], "prompt": { "modality": "text", "value": "Which event holds the record for the largest one-day percentage drop in U.S. stock market history, with the Dow falling 22.6% in a single session?" }, "options": [ { "modality": "text", "value": "The COVID-19 Crash" }, { "modality": "text", "value": "Black Monday, 1987" }, { "modality": "text", "value": "The Crash of 1929" }, { "modality": "text", "value": "The 2008 Financial Crisis" } ], "correctIndex": 1, "explanation": "Black Monday (October 1987), attributed to automated trading, saw the Dow fall 22.6% in one session — the largest single-day percentage drop ever. The 1929 crash fell ~25%, but spread over two days.", "uid": "zspgbi4n5wos" }, { "id": "czr-investing-201-definition-nasdaq", "shape": "cloze", "tags": [ "history", "nasdaq", "vocabulary" ], "template": "___ — National Association of Securities Dealers Automated Quotations — the world's first fully electronic stock market, built to broadcast dealer quotes rather than run a trading floor", "answer": "NASDAQ", "distractors": [ "Lehman Brothers" ], "derivedFrom": "definition-nasdaq", "uid": "1gs8qghubebgx" }, { "id": "czr-investing-201-definition-sec", "shape": "cloze", "tags": [ "regulation", "sec", "vocabulary" ], "template": "___ — Securities and Exchange Commission — the federal agency that regulates publicly traded companies and securities markets, enforcing disclosure and anti-fraud rules", "answer": "SEC", "distractors": [ "Securities Act", "Glass-Steagall Act" ], "derivedFrom": "definition-sec", "uid": "1vcg7nni1sdoj" }, { "id": "cz-investing-201-definition-stock", "shape": "cloze", "tags": [ "asset-class", "equities", "vocabulary" ], "template": "An ownership stake in a company. Buying a share of Apple makes you a fractional owner of its assets, earnings, and future prospects. ___ are issued via an IPO and traded on exchanges.", "answer": "Stock", "distractors": [ "Bond", "REIT", "Blockchain" ], "derivedFrom": "definition-stock", "explanation": "Compare: Bond — A loan made by an investor to a corporation or government. The issuer pays a fixed rate of interest (the coupon) over the bond's life and returns the principal at maturity. Bonds are safer than stocks but offer lower long-term returns.", "uid": "11hmrpy1fdmafa" }, { "id": "cz-investing-201-definition-bond", "shape": "cloze", "tags": [ "asset-class", "bonds", "vocabulary" ], "template": "A loan made by an investor to a corporation or government. The issuer pays a fixed rate of interest (the coupon) over the ___ life and returns the principal at maturity. ___ are safer than stocks but offer lower long-term returns.", "answer": "Bond", "distractors": [ "Stock", "Blockchain", "REIT" ], "derivedFrom": "definition-bond", "explanation": "Compare: Stock — An ownership stake in a company. Buying a share of Apple makes you a fractional owner of its assets, earnings, and future prospects. Stocks are issued via an IPO and traded on exchanges.", "uid": "14sx9axcrz4hz" }, { "id": "czr-investing-201-definition-blockchain", "shape": "cloze", "tags": [ "asset-class", "crypto", "vocabulary" ], "template": "___ — A decentralized, public ledger maintained by a global network of computers, enabling peer-to-peer transfer of value without a central intermediary", "answer": "Blockchain", "distractors": [ "Bond", "REIT", "Stock" ], "derivedFrom": "definition-blockchain", "explanation": "Compare: Bond — A loan made by an investor to a corporation or government. The issuer pays a fixed rate of interest (the coupon) over the bond's life and returns the principal at maturity. Bonds are safer than stocks but offer lower long-term returns.", "uid": "dqln3n1q7dgml" }, { "id": "czr-investing-201-definition-reit", "shape": "cloze", "tags": [ "asset-class", "real-estate", "vocabulary" ], "template": "___ — Real Estate Investment Trust — a publicly traded company that owns income-producing real estate and is required by law to distribute at least 90% of taxable income as dividends", "answer": "REIT", "distractors": [ "Bond", "Stock", "Blockchain" ], "derivedFrom": "definition-reit", "explanation": "Compare: Bond — A loan made by an investor to a corporation or government. The issuer pays a fixed rate of interest (the coupon) over the bond's life and returns the principal at maturity. Bonds are safer than stocks but offer lower long-term returns.", "uid": "1web3yd1yc8am7" }, { "id": "czr-investing-201-definition-mr-market", "shape": "cloze", "tags": [ "value-investing", "graham", "vocabulary" ], "template": "___ — Graham's metaphor for the investing world: an irrational business partner who offers you a price every day — sometimes euphorically high, sometimes despairingly low. Treat his moods as opportunities, not verdicts", "answer": "Mr. Market", "distractors": [ "Intrinsic value", "ROIC", "Intelligent Investor" ], "derivedFrom": "definition-mr-market", "explanation": "Compare: Intrinsic value — What a company is actually worth based on its business fundamentals, independent of its current market price. Estimating it is the central task of value investing.", "uid": "1mnwf7e1u1ufcu" }, { "id": "czr-investing-201-definition-intrinsic-value", "shape": "cloze", "tags": [ "value-investing", "graham", "vocabulary" ], "template": "___ — What a company is actually worth based on its business fundamentals, independent of its current trading price. Estimating it is the central task for a fundamentals-focused investor", "answer": "Intrinsic value", "distractors": [ "Mr. Market", "Security Analysis", "ROIC" ], "derivedFrom": "definition-intrinsic-value", "explanation": "Compare: Mr. Market — Graham's metaphor for the stock market: an irrational business partner who offers you a price every day — sometimes euphorically high, sometimes despairingly low. Treat his moods as opportunities, not verdicts.", "uid": "9mf1tf16uq587" }, { "id": "czr-investing-201-definition-margin-of-safety", "shape": "cloze", "tags": [ "value-investing", "margin-of-safety", "vocabulary" ], "template": "___ — The difference between a stock's intrinsic value and its current market price. The wider the gap, the more room you have to be wrong and still profit — your buffer against estimation error", "answer": "Margin of safety", "distractors": [ "Economic moat", "Mr. Market", "ROIC" ], "derivedFrom": "definition-margin-of-safety", "explanation": "Compare: Economic moat — Warren Buffett's term for a durable competitive advantage that protects a company's market position — network effects, switching costs, cost advantages, or intangible assets like brand.", "uid": "4kdj9i1wg4z8e" }, { "id": "czr-investing-201-definition-roic", "shape": "cloze", "tags": [ "value-investing", "roic", "vocabulary" ], "template": "___ — Return on Invested Capital = NOPAT (net operating profit after tax) divided by invested capital. It measures how efficiently a company turns capital into profit — a favorite quality metric of investors like Tom Nash", "answer": "ROIC", "distractors": [ "Intrinsic value", "Mr. Market", "Economic moat" ], "derivedFrom": "definition-roic", "explanation": "Compare: Intrinsic value — What a company is actually worth based on its business fundamentals, independent of its current market price. Estimating it is the central task of value investing.", "uid": "4nt78b1qwtmu7" }, { "id": "czr-investing-201-definition-moat", "shape": "cloze", "tags": [ "value-investing", "moat", "vocabulary" ], "template": "___ — Warren Buffett's term for a durable competitive advantage that protects a company's market position — network effects, switching costs, cost advantages, or intangible assets like brand", "answer": "Economic moat", "distractors": [ "ROIC", "Margin of safety", "Intrinsic value" ], "derivedFrom": "definition-moat", "explanation": "Compare: ROIC — Return on Invested Capital = NOPAT (net operating profit after tax) divided by invested capital. It measures how efficiently a company turns capital into profit — a favorite quality metric of investors like Tom Nash.", "uid": "18cmtf167y6kt" }, { "id": "czr-investing-201-definition-ebitda", "shape": "cloze", "tags": [ "bottom-line", "statements", "income-statement", "vocabulary" ], "template": "___ — Earnings Before Interest, Taxes, Depreciation, and Amortization — operating income plus depreciation and amortization, used as a rough proxy for cash generation", "answer": "EBITDA", "distractors": [ "EPS", "ROIC", "WACC" ], "derivedFrom": "definition-ebitda", "explanation": "Compare: ROIC — Return on Invested Capital = NOPAT (net operating profit after tax) divided by invested capital. It measures how efficiently a company turns capital into profit — a favorite quality metric of investors like Tom Nash.", "uid": "1ya9povqk0zs" }, { "id": "cz-investing-201-definition-gross-margin", "shape": "cloze", "tags": [ "top-line", "statements", "income-statement", "vocabulary" ], "template": "Profit after cost of goods sold, divided by revenue. Software companies often exceed 70%; hardware companies typically run 30–50%. A high, stable ___ signals pricing power.", "answer": "Gross margin", "distractors": [ "Operating margin", "Net margin", "Return on equity" ], "derivedFrom": "definition-gross-margin", "uid": "1pbyzrn1n7xii9" }, { "id": "czr-investing-201-definition-balance-equation", "shape": "cloze", "tags": [ "statements", "balance-sheet", "vocabulary" ], "template": "___ — Assets = Liabilities + Shareholders' Equity. This identity always holds — every asset is financed either by debt or by owners' capital", "answer": "The accounting equation", "distractors": [ "Current ratio", "Free cash flow (FCF)", "Debt-to-equity" ], "derivedFrom": "definition-balance-equation", "explanation": "Compare: Current ratio — Current assets divided by current liabilities — a measure of short-term liquidity. Above 1.0 is generally healthy, meaning the company can cover near-term obligations.", "uid": "m3seyz6276sn" }, { "id": "czr-investing-201-definition-current-ratio", "shape": "cloze", "tags": [ "statements", "balance-sheet", "vocabulary" ], "template": "___ — Short-term assets divided by short-term liabilities — a measure of liquidity. Above 1.0 is generally healthy, meaning the company can cover near-term obligations", "answer": "Current ratio", "distractors": [ "Debt-to-equity", "Free cash flow (FCF)", "The accounting equation" ], "derivedFrom": "definition-current-ratio", "explanation": "Compare: Debt-to-equity — Total liabilities divided by total equity — a measure of financial leverage and risk. Higher ratios mean more debt financing and greater vulnerability in downturns.", "uid": "19pzoidgh8xv7" }, { "id": "czr-investing-201-definition-debt-to-equity", "shape": "cloze", "tags": [ "statements", "balance-sheet", "vocabulary" ], "template": "___ — Total liabilities divided by total equity — a measure of financial leverage and risk. Higher ratios mean more debt financing and greater vulnerability in downturns", "answer": "Debt-to-equity", "distractors": [ "Current ratio", "Free cash flow (FCF)", "The accounting equation" ], "derivedFrom": "definition-debt-to-equity", "explanation": "Compare: Current ratio — Current assets divided by current liabilities — a measure of short-term liquidity. Above 1.0 is generally healthy, meaning the company can cover near-term obligations.", "uid": "durdqr9gyot7" }, { "id": "czr-investing-201-definition-fcf", "shape": "cloze", "tags": [ "statements", "cash-flow", "vocabulary" ], "template": "___ — Money remaining from operations after capital spending — what a company generates after maintaining and growing its assets. It's the most important number in valuation", "answer": "Free cash flow (FCF)", "distractors": [ "Debt-to-equity", "Current ratio", "The accounting equation" ], "derivedFrom": "definition-fcf", "explanation": "Compare: Debt-to-equity — Total liabilities divided by total equity — a measure of financial leverage and risk. Higher ratios mean more debt financing and greater vulnerability in downturns.", "uid": "10twpkyb5zsak" }, { "id": "czr-investing-201-definition-time-value", "shape": "cloze", "tags": [ "valuation", "dcf", "vocabulary" ], "template": "___ — The principle that a dollar today is worth more than a dollar in the future, because today's dollar can be invested to earn returns in the meantime. It's the reason future cash flows must be discounted", "answer": "Time value of money", "distractors": [ "Terminal value", "WACC", "Gordon Growth" ], "derivedFrom": "definition-time-value", "explanation": "Compare: Terminal value — The value of all a company's cash flows beyond the explicit projection period, capturing the bulk of a DCF's output. It's estimated with the Gordon Growth model or an exit multiple.", "uid": "r6w3wz1it68yt" }, { "id": "cz-investing-201-definition-wacc", "shape": "cloze", "tags": [ "valuation", "dcf", "vocabulary" ], "template": "Weighted Average Cost of Capital — the blended cost of all capital, equity and debt, used to fund a business. It's the discount rate in a DCF: a higher ___ lowers the present value of future cash flows.", "answer": "WACC", "distractors": [ "Time value of money", "Gordon Growth", "Discounted Cash Flow" ], "derivedFrom": "definition-wacc", "explanation": "Compare: Time value of money — The principle that a dollar today is worth more than a dollar in the future, because today's dollar can be invested to earn returns in the meantime. It's the reason future cash flows must be discounted.", "uid": "1gsgsvx19qra4b" }, { "id": "czr-investing-201-definition-terminal-value", "shape": "cloze", "tags": [ "valuation", "dcf", "vocabulary" ], "template": "___ — The value of all a company's cash flows beyond the explicit projection period, capturing the bulk of a DCF's output. It's estimated with the Gordon Growth model or an exit multiple", "answer": "Terminal value", "distractors": [ "Time value of money", "WACC", "Discounted Cash Flow" ], "derivedFrom": "definition-terminal-value", "explanation": "Compare: Time value of money — The principle that a dollar today is worth more than a dollar in the future, because today's dollar can be invested to earn returns in the meantime. It's the reason future cash flows must be discounted.", "uid": "jl6lqd1mo2v93" }, { "id": "czr-investing-201-definition-enterprise-value", "shape": "cloze", "tags": [ "valuation", "vocabulary" ], "template": "___ — Market capitalization plus debt minus cash — the total cost to acquire a company outright. It captures the whole business, regardless of how it's financed", "answer": "Enterprise value (EV)", "distractors": [ "WACC", "Time value of money", "Terminal value" ], "derivedFrom": "definition-enterprise-value", "explanation": "Compare: WACC — Weighted Average Cost of Capital — the blended cost of all capital, equity and debt, used to fund a business. It's the discount rate in a DCF: a higher WACC lowers the present value of future cash flows.", "uid": "dqwpx6q5sj6w" }, { "id": "czr-investing-201-definition-pe", "shape": "cloze", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "template": "___ — Price-to-Earnings = stock price divided by earnings per share. It tells you how much investors pay for each dollar of annual profit. A P/E of 20 means $20 paid per $1 of earnings", "answer": "P/E ratio", "distractors": [ "EV/EBITDA", "PEG ratio", "Options" ], "derivedFrom": "definition-pe", "explanation": "Compare: EV/EBITDA — Enterprise value divided by EBITDA. Preferred over P/E for comparing companies with different capital structures because it looks at the whole enterprise relative to operating cash generation. It's the standard metric in M&A and LBO analysis.", "uid": "1yge24q15dhybo" }, { "id": "czr-investing-201-definition-ps", "shape": "cloze", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "template": "___ — Price-to-Sales = market cap divided by annual revenue. Used when companies are pre-profitable or when earnings are temporarily depressed by heavy reinvestment", "answer": "P/S ratio", "distractors": [ "FCF yield", "P/B ratio", "Blue chip" ], "derivedFrom": "definition-ps", "explanation": "Compare: FCF yield — Free cash flow divided by market cap — the inverse of a price-to-FCF ratio. A high FCF yield (8–12%+) suggests a stock is cheap relative to the cash it generates.", "uid": "hui5ex3qdyl" }, { "id": "czr-investing-201-definition-peg", "shape": "cloze", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "template": "___ — Price/Earnings-to-Growth = P/E divided by the earnings growth rate. A reading below 1.0 is often considered undervalued. It normalizes P/E for growth, making fast and slow growers comparable", "answer": "PEG ratio", "distractors": [ "P/E ratio", "EV/EBITDA", "SEC" ], "derivedFrom": "definition-peg", "explanation": "Compare: P/E ratio — Price-to-Earnings = stock price divided by earnings per share. It tells you how much investors pay for each dollar of annual profit. A P/E of 20 means $20 paid per $1 of earnings.", "uid": "1j5kiba24xdm4" }, { "id": "cz-investing-201-definition-fcf-yield", "shape": "cloze", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "template": "Free cash flow divided by market cap — the inverse of a price-to-FCF ratio. A high ___ (8–12%+) suggests a stock is cheap relative to the cash it generates.", "answer": "FCF yield", "distractors": [ "P/S ratio", "P/B ratio", "Hedge" ], "derivedFrom": "definition-fcf-yield", "explanation": "Compare: P/S ratio — Price-to-Sales = market cap divided by annual revenue. Used when companies are pre-profitable or when earnings are temporarily depressed by heavy reinvestment.", "uid": "r8c18cjfmur6" }, { "id": "czr-investing-201-definition-pb", "shape": "cloze", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "template": "___ — Price-to-Book = stock price divided by book value per share. Most useful for banks and asset-heavy industries, where balance-sheet value closely tracks earning power", "answer": "P/B ratio", "distractors": [ "FCF yield", "P/S ratio", "Debt-to-equity" ], "derivedFrom": "definition-pb", "explanation": "Compare: FCF yield — Free cash flow divided by market cap — the inverse of a price-to-FCF ratio. A high FCF yield (8–12%+) suggests a stock is cheap relative to the cash it generates.", "uid": "8r4zxq17l2gjq" }, { "id": "czr-investing-201-definition-index-fund", "shape": "cloze", "tags": [ "strategy", "index", "vocabulary" ], "template": "___ — A fund that tracks a broad stock benchmark (like the S&P 500) by buying all its constituents in proportion to their weight. Low fees, instant diversification, and tax efficiency are its hallmarks", "answer": "Index fund", "distractors": [ "Hedge fund", "Money market fund", "Actively managed fund" ], "derivedFrom": "definition-index-fund", "uid": "56j0s8v2caly" }, { "id": "czr-investing-201-definition-etf", "shape": "cloze", "tags": [ "strategy", "index", "vocabulary" ], "template": "___ — Exchange-Traded Fund — like an index fund but trades intraday on an exchange like a stock. Expense ratios of 0.03–0.20% are common, versus 1–2% for active funds", "answer": "ETF", "distractors": [ "ETF tracking the total U.S. stock market", "ETF tracking the Nasdaq 100" ], "derivedFrom": "definition-etf", "uid": "8m1xzy1bz8r70" }, { "id": "czr-investing-201-definition-dividend-aristocrat", "shape": "cloze", "tags": [ "investing-style", "strategy", "dividend", "vocabulary" ], "template": "___ — An S&P 500 company that has raised its shareholder payout for 25+ consecutive years. Reinvesting those payouts compounds powerfully and provides income in retirement", "answer": "Dividend Aristocrat", "distractors": [ "Dollar-cost averaging (DCA)", "Options", "Free cash flow (FCF)" ], "derivedFrom": "definition-dividend-aristocrat", "explanation": "Compare: Dollar-cost averaging (DCA) — Investing a fixed dollar amount at regular intervals regardless of price. It removes the burden of timing the market and ensures you buy more shares when prices are low.", "uid": "lbooh419tb37o" }, { "id": "czr-investing-201-definition-dca", "shape": "cloze", "tags": [ "investing-style", "strategy", "dca", "vocabulary" ], "template": "___ — Investing a fixed dollar amount at regular intervals regardless of price. It removes the burden of timing the market and ensures you buy more shares when prices are low", "answer": "Dollar-cost averaging (DCA)", "distractors": [ "Dividend Aristocrat", "Enterprise value (EV)", "ETF tracking the S&P 500" ], "derivedFrom": "definition-dca", "explanation": "Compare: Dividend Aristocrat — An S&P 500 company that has raised its dividend for 25+ consecutive years. Reinvested dividends compound powerfully and provide income in retirement.", "uid": "1xkvrn4ivbir2" }, { "id": "czr-investing-201-definition-gics", "shape": "cloze", "tags": [ "sector-rotation", "gics", "vocabulary" ], "template": "___ — Global Industry Classification Standard — the system that organizes the S&P 500 into 11 sectors, from Information Technology and Financials to Utilities and Energy", "answer": "GICS", "distractors": [ "ICB", "NAICS", "SIC" ], "derivedFrom": "definition-gics", "uid": "wj09mt1rjlrfh" }, { "id": "czr-investing-201-definition-bull-market", "shape": "cloze", "tags": [ "market-mood", "vocabulary", "market-basics" ], "template": "___ — An environment of rising prices and investor optimism, typically defined as a 20%+ rise from a recent low", "answer": "Bull market", "distractors": [ "Correction", "Volatility / VIX", "Bear market" ], "derivedFrom": "definition-bull-market", "explanation": "Compare: Correction — A decline of 10–20% from a recent peak — normal, historically frequent, and usually short-lived.", "uid": "mjco26pqika2" }, { "id": "czr-investing-201-definition-bear-market", "shape": "cloze", "tags": [ "market-mood", "vocabulary", "market-basics" ], "template": "___ — A decline of 20% or more from a recent high, marked by pessimism and heavy selling pressure", "answer": "Bear market", "distractors": [ "Correction", "Bull market", "Volatility / VIX" ], "derivedFrom": "definition-bear-market", "explanation": "Compare: Correction — A decline of 10–20% from a recent peak — normal, historically frequent, and usually short-lived. Bull market — A market environment of rising prices and investor optimism, typically defined as a 20%+ rise from a recent low.", "uid": "14n1x5gryns4s" }, { "id": "czr-investing-201-definition-correction", "shape": "cloze", "tags": [ "market-mood", "vocabulary", "market-basics" ], "template": "___ — A decline of 10–20% from a recent peak — normal, historically frequent, and usually short-lived", "answer": "Correction", "distractors": [ "Volatility / VIX", "Bear market", "Bull market" ], "derivedFrom": "definition-correction", "explanation": "Compare: Volatility / VIX — Volatility is the statistical measure of price fluctuation. The VIX (CBOE Volatility Index), the market's 'fear gauge,' measures expected S&P 500 volatility over the next 30 days and spikes during stress.", "uid": "1t455xm1wwekg8" }, { "id": "czr-investing-201-definition-volatility-vix", "shape": "cloze", "tags": [ "market-mood", "vocabulary", "market-basics" ], "template": "___ — A statistical measure of price fluctuation. Often tracked via the CBOE's benchmark, the market's 'fear gauge,' which gauges expected S&P 500 price swings over the next 30 days and spikes during stress", "answer": "Volatility / VIX", "distractors": [ "Bear market", "Correction", "Bull market" ], "derivedFrom": "definition-volatility-vix", "explanation": "Compare: Bear market — A market decline of 20% or more from a recent high, marked by pessimism and selling. Correction — A decline of 10–20% from a recent peak — normal, historically frequent, and usually short-lived.", "uid": "4no40fy4okyt" }, { "id": "czr-investing-201-definition-blue-chip", "shape": "cloze", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "template": "___ — A large, well-established, financially sound company with a long track record of reliable performance", "answer": "Blue chip", "distractors": [ "IPO", "Annual dividend per share divided by the stock price", "Bond" ], "derivedFrom": "definition-blue-chip", "explanation": "Compare: IPO — Initial Public Offering — a private company's first sale of stock to the public, the moment it begins trading on an exchange. Annual dividend per share divided by the stock price — Dividend yield.", "uid": "zgdviw36a0js" }, { "id": "czr-investing-201-definition-ipo", "shape": "cloze", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "template": "___ — Initial Public Offering — a private company's first sale of stock to the public, the moment it begins trading on an exchange", "answer": "IPO", "distractors": [ "Blue chip", "Annual dividend per share divided by the stock price", "Float" ], "derivedFrom": "definition-ipo", "explanation": "Compare: Blue chip — A large, well-established, financially sound company with a long track record of reliable performance. Annual dividend per share divided by the stock price — Dividend yield.", "uid": "ecu1sk1yizjii" }, { "id": "cz-investing-201-definition-alpha", "shape": "cloze", "tags": [ "market-metrics", "vocabulary", "advanced" ], "template": "Returns above a benchmark — for example, beating the S&P 500. ___ is your edge, the value added beyond simply matching the market.", "answer": "Alpha", "distractors": [ "Float", "Beta", "100 basis points = 1%; used for interest rates and margins" ], "derivedFrom": "definition-alpha", "explanation": "Compare: Float — The number of shares available for public trading — total shares minus insider holdings and restricted stock. Beta — A stock's sensitivity to market moves. A beta of 1.5 means it tends to move 50% more than the market, both up and down.", "uid": "13veoe6x9a4cc" }, { "id": "cz-investing-201-definition-beta", "shape": "cloze", "tags": [ "market-metrics", "vocabulary", "advanced" ], "template": "A stock's sensitivity to market moves. A ___ of 1.5 means it tends to move 50% more than the market, both up and down.", "answer": "Beta", "distractors": [ "Float", "Alpha", "100 basis points = 1%; used for interest rates and margins" ], "derivedFrom": "definition-beta", "explanation": "Compare: Float — The number of shares available for public trading — total shares minus insider holdings and restricted stock. Alpha — Returns above a benchmark — for example, beating the S&P 500. Alpha is your edge, the value added beyond simply matching the market.", "uid": "6oxb7n135odm1" }, { "id": "czr-investing-201-definition-float", "shape": "cloze", "tags": [ "market-metrics", "vocabulary", "advanced" ], "template": "___ — The number of shares available for public trading — total shares minus insider holdings and restricted stock", "answer": "Float", "distractors": [ "Beta", "Alpha", "100 basis points = 1%; used for interest rates and margins" ], "derivedFrom": "definition-float", "explanation": "Compare: Beta — A stock's sensitivity to market moves. A beta of 1.5 means it tends to move 50% more than the market, both up and down. Alpha — Returns above a benchmark — for example, beating the S&P 500. Alpha is your edge, the value added beyond simply matching the market.", "uid": "1k08i10z4h2gm" }, { "id": "czr-investing-201-definition-short-selling", "shape": "cloze", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "template": "___ — Borrowing shares to offload them immediately, hoping to reacquire them cheaper later. It profits from falling prices but carries theoretically unlimited downside risk", "answer": "Short selling", "distractors": [ "Buyback", "Options", "Hedge" ], "derivedFrom": "definition-short-selling", "explanation": "Compare: Buyback — A share repurchase — a company uses cash to buy its own stock, reducing the share count and increasing earnings per share. Options — Contracts giving the right, but not the obligation, to buy (call) or sell (put) a stock at a set price by a set date.", "uid": "1h7vz861vmpfzc" }, { "id": "czr-investing-201-definition-hedge", "shape": "cloze", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "template": "___ — Taking an offsetting position to reduce risk — for example, buying put options as insurance on a stock portfolio", "answer": "Hedge", "distractors": [ "Short selling", "Buyback" ], "derivedFrom": "definition-hedge", "explanation": "Compare: Short selling — Borrowing shares to sell them, hoping to buy them back cheaper later. It profits from falling prices but carries theoretically unlimited downside risk.", "uid": "gsbujp1t6nj3t" }, { "id": "czr-investing-201-definition-options", "shape": "cloze", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "template": "___ — Contracts giving the right, but not the obligation, to buy (call) or sell (put) a stock at a set price by a set date", "answer": "Options", "distractors": [ "Buyback", "Hedge", "Short selling" ], "derivedFrom": "definition-options", "explanation": "Compare: Buyback — A share repurchase — a company uses cash to buy its own stock, reducing the share count and increasing earnings per share. Hedge — Taking an offsetting position to reduce risk — for example, buying put options as insurance on a stock portfolio.", "uid": "1vlgboh1k2n8sp" }, { "id": "czr-investing-201-definition-buyback", "shape": "cloze", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "template": "___ — A share repurchase — a company uses cash to buy its own stock, reducing the share count and increasing earnings per share", "answer": "Buyback", "distractors": [ "Hedge", "Options", "Short selling" ], "derivedFrom": "definition-buyback", "explanation": "Compare: Hedge — Taking an offsetting position to reduce risk — for example, buying put options as insurance on a stock portfolio. Options — Contracts giving the right, but not the obligation, to buy (call) or sell (put) a stock at a set price by a set date.", "uid": "3wt1vj234nmx" }, { "id": "czr-investing-201-definition-sp500", "shape": "cloze", "tags": [ "vocabulary", "index" ], "template": "___ — A market-cap-weighted index of the largest publicly traded U.S. companies — the most widely used benchmark for the U.S. stock market", "answer": "S&P 500", "distractors": [ "Russell 2000", "All stocks on the Nasdaq exchange, mostly technology names", "Dow Jones Industrial Average" ], "derivedFrom": "definition-sp500", "explanation": "Compare: Russell 2000 — An index of 2,000 small-cap U.S. companies — the standard benchmark for small-cap performance. All stocks on the Nasdaq exchange — heavily tech-weighted — Nasdaq Composite.", "uid": "8vvawa1nl3mpo" }, { "id": "czr-investing-201-definition-djia", "shape": "cloze", "tags": [ "vocabulary", "index" ], "template": "___ — A price-weighted index of 30 large U.S. companies — the oldest benchmark, but less representative of the broad market than the S&P 500", "answer": "Dow Jones Industrial Average", "distractors": [ "All stocks on the Nasdaq exchange — heavily tech-weighted", "Russell 2000" ], "derivedFrom": "definition-djia", "explanation": "Compare: All stocks on the Nasdaq exchange — heavily tech-weighted — Nasdaq Composite. Russell 2000 — An index of 2,000 small-cap U.S. companies — the standard benchmark for small-cap performance.", "uid": "1oqm4kwcml2ig" }, { "id": "czr-investing-201-definition-russell-2000", "shape": "cloze", "tags": [ "vocabulary", "index" ], "template": "___ — An index of 2,000 small-cap U.S. companies — the standard benchmark for small-cap performance", "answer": "Russell 2000", "distractors": [ "S&P 500", "All stocks on the Nasdaq exchange — heavily tech-weighted", "Dow Jones Industrial Average" ], "derivedFrom": "definition-russell-2000", "explanation": "Compare: S&P 500 — A market-cap-weighted index of the 500 largest U.S. public companies — the most widely used benchmark for the U.S. stock market. All stocks on the Nasdaq exchange — heavily tech-weighted — Nasdaq Composite.", "uid": "wwih581vu0taq" }, { "id": "czr-investing-201-definition-defi", "shape": "cloze", "tags": [ "future", "defi", "vocabulary" ], "template": "___ — Decentralized Finance — blockchain-based smart contracts that recreate lending, borrowing, and trading without traditional intermediaries. Protocols like Aave, Uniswap, and Compound run transparently on public blockchains", "answer": "DeFi", "distractors": [ "ESG investing", "Goldman Sachs", "Free cash flow (FCF)" ], "derivedFrom": "definition-defi", "explanation": "Compare: ESG investing — Environmental, Social, and Governance investing — evaluating companies on non-financial factors alongside financial performance. It has grown from niche to mainstream, with trillions in assets under ESG mandates.", "uid": "1e3rfza1xbbck" }, { "id": "czr-investing-201-definition-esg", "shape": "cloze", "tags": [ "future", "esg", "vocabulary" ], "template": "___ — Environmental, Social, and Governance investing — evaluating companies on non-financial factors alongside financial performance. It has grown from niche to mainstream, with trillions in assets now managed this way", "answer": "ESG investing", "distractors": [ "DeFi", "Goldman Sachs", "Traditional IRA" ], "derivedFrom": "definition-esg", "explanation": "Compare: DeFi — Decentralized Finance — blockchain-based smart contracts that recreate lending, borrowing, and trading without traditional intermediaries. Protocols like Aave, Uniswap, and Compound run transparently on public blockchains.", "uid": "1ddqrjrkkcyfd" }, { "id": "czr-investing-201-definition-401k", "shape": "cloze", "tags": [ "foundation", "accounts", "vocabulary" ], "template": "___ — An employer-sponsored, pre-tax retirement account. Contributions reduce your taxable income now; withdrawals are taxed in retirement", "answer": "401(k)", "distractors": [ "Traditional IRA", "HSA", "Roth IRA" ], "derivedFrom": "definition-401k", "explanation": "Compare: Traditional IRA — An individual pre-tax retirement account. Contributions may be deductible now, and withdrawals are taxed in retirement.", "uid": "166y6c63z4q0" }, { "id": "czr-investing-201-definition-ira", "shape": "cloze", "tags": [ "foundation", "accounts", "vocabulary" ], "template": "___ — An individual pre-tax retirement account. Contributions may be deductible now, and withdrawals are taxed in retirement", "answer": "Traditional IRA", "distractors": [ "Roth IRA", "HSA", "401(k)" ], "derivedFrom": "definition-ira", "explanation": "Compare: Roth IRA — An individual retirement account funded with post-tax dollars — but all growth and qualified withdrawals are completely tax-free, making it one of the most powerful long-term wealth vehicles.", "uid": "t4l9pi11ufqgo" }, { "id": "czr-investing-201-definition-roth-ira", "shape": "cloze", "tags": [ "foundation", "accounts", "vocabulary" ], "template": "___ — An individual retirement account funded with post-tax dollars — but all growth and qualified withdrawals are completely tax-free, making it one of the most powerful long-term wealth vehicles", "answer": "Roth IRA", "distractors": [ "Traditional IRA", "HSA", "401(k)" ], "derivedFrom": "definition-roth-ira", "explanation": "Compare: Traditional IRA — An individual pre-tax retirement account. Contributions may be deductible now, and withdrawals are taxed in retirement.", "uid": "1l18vwbt4j905" }, { "id": "czr-investing-201-definition-hsa", "shape": "cloze", "tags": [ "foundation", "accounts", "vocabulary" ], "template": "___ — Health Savings Account — a triple-tax-advantaged account: pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses. It can double as a stealth retirement account", "answer": "HSA", "distractors": [ "Traditional IRA", "Roth IRA", "401(k)" ], "derivedFrom": "definition-hsa", "explanation": "Compare: Traditional IRA — An individual pre-tax retirement account. Contributions may be deductible now, and withdrawals are taxed in retirement.", "uid": "xd0bsy16a2erg" }, { "id": "cz-investing-201-fact-dotcom-bust", "shape": "cloze", "tags": [ "history", "crash" ], "template": "Investors poured capital into internet companies with no profits or viable business models. The tech-heavy Nasdaq lost nearly 80% of its value between March ___ and late 2002. Survivors like Amazon and Google emerged from the wreckage far stronger than before.", "answer": "2000", "distractors": [ "1993", "2009", "1976" ], "derivedFrom": "fact-dotcom-bust", "uid": "8wt7z8bpboj0" }, { "id": "cz-investing-201-fact-covid-crash", "shape": "cloze", "tags": [ "history", "crash" ], "template": "The fastest bear market in history: the S&P 500 fell 34% in just 33 days in early ___. An unprecedented government stimulus response drove a shocking recovery, with the market hitting new highs in just five months.", "answer": "2020", "distractors": [ "2013", "2029", "1996" ], "derivedFrom": "fact-covid-crash", "uid": "hkwdovq8t4y9" }, { "id": "mcq-c-investing-201-fact-covid-crash", "shape": "mcq", "tags": [ "history", "crash" ], "prompt": { "modality": "text", "value": "The fastest bear market in history: the S&P 500 fell 34% in just 33 days in early ___. An unprecedented government stimulus response drove a shocking recovery, with the market hitting new highs in just five months." }, "options": [ { "modality": "text", "value": "2020" }, { "modality": "text", "value": "2029" }, { "modality": "text", "value": "2013" }, { "modality": "text", "value": "1996" } ], "correctIndex": 0, "derivedFrom": "fact-covid-crash", "uid": "naxxy31fjcq7z" }, { "id": "cz-investing-201-fact-securities-act-1933", "shape": "cloze", "tags": [ "regulation", "sec" ], "template": "In 1933, the ___ prohibited deceit and misrepresentation in the sale of stocks and bonds to the public, establishing the principle that investors must receive truthful, material information before buying — the foundation of modern disclosure law.", "answer": "Securities Act", "distractors": [ "Glass-Steagall Act", "Exchange Commission", "SEC" ], "derivedFrom": "fact-securities-act-1933", "explanation": "Compare: SEC — Securities and Exchange Commission — the federal agency that regulates publicly traded companies and securities markets, enforcing disclosure and anti-fraud rules.", "uid": "omej4wpwlxw8" }, { "id": "cz-investing-201-fact-glass-steagall", "shape": "cloze", "tags": [ "regulation", "sec" ], "template": "The ___ of 1933 required the separation of investment banking from commercial banking, walling off speculative activity from ordinary deposits. The rule stood for decades but was largely repealed in 1999 — a change later scrutinized after the 2008 crisis.", "answer": "Glass-Steagall Act", "distractors": [ "SEC", "Securities Act", "Exchange Commission" ], "derivedFrom": "fact-glass-steagall", "explanation": "Compare: SEC — Securities and Exchange Commission — the federal agency that regulates publicly traded companies and securities markets, enforcing disclosure and anti-fraud rules.", "uid": "1v2jekt1w1lso9" }, { "id": "cz-investing-201-fact-gold-hedge", "shape": "cloze", "tags": [ "asset-class", "commodities" ], "template": "Gold historically serves as a store of value and an inflation hedge: when paper currency loses purchasing power, gold tends to hold or appreciate. In times of geopolitical uncertainty or currency crises, investors stage a 'flight to safety' into gold and ___.", "answer": "U.S. Treasuries", "distractors": [ "Stock", "Bond", "REIT" ], "derivedFrom": "fact-gold-hedge", "explanation": "Compare: Stock — An ownership stake in a company. Buying a share of Apple makes you a fractional owner of its assets, earnings, and future prospects. Stocks are issued via an IPO and traded on exchanges.", "uid": "1ym05d88vryf8" }, { "id": "cz-investing-201-fact-bitcoin", "shape": "cloze", "tags": [ "asset-class", "crypto" ], "template": "Bitcoin, launched in ___, was the first widely adopted cryptocurrency, designed to transfer value without traditional financial intermediaries. It has a fixed supply capped at 21 million coins — a hard scarcity that distinguishes it from government-issued currency.", "answer": "2009", "distractors": [ "2001", "2017", "1984" ], "derivedFrom": "fact-bitcoin", "uid": "1xz1y3en6fdls" }, { "id": "cz-investing-201-fact-ethereum", "shape": "cloze", "tags": [ "asset-class", "crypto" ], "template": "Ethereum, the second-largest cryptocurrency by market cap, introduced smart contracts: self-executing code that powers decentralized applications, DeFi protocols, and NFTs. After 'The Merge' in ___, Ethereum switched to a Proof-of-Stake consensus mechanism.", "answer": "2022", "distractors": [ "2015", "2031", "1998" ], "derivedFrom": "fact-ethereum", "uid": "1tjawuq1evhxes" }, { "id": "cz-investing-201-fact-buffett-young", "shape": "cloze", "tags": [ "value-investing", "buffett" ], "template": "Buffett reportedly read every investing book in the Omaha public library by age ten. He made his first stock purchase at age eleven — three shares of ___ at $38 per share — beginning a lifetime of disciplined, buy-and-hold investing.", "answer": "Cities Service Preferred", "distractors": [ "GEICO", "American Express", "Coca-Cola" ], "derivedFrom": "fact-buffett-young", "uid": "1p1ovs6e6fpsc" }, { "id": "cz-investing-201-fact-gordon-growth", "shape": "cloze", "tags": [ "valuation", "dcf" ], "template": "The ___ model sets terminal value as the final year's FCF grown by a long-term rate g, divided by (r − g). It assumes the company grows at a modest, perpetual rate forever — usually near long-run GDP growth, around 2–3%.", "answer": "Gordon Growth", "distractors": [ "Time value of money", "WACC", "Terminal value" ], "derivedFrom": "fact-gordon-growth", "explanation": "Compare: Time value of money — The principle that a dollar today is worth more than a dollar in the future, because today's dollar can be invested to earn returns in the meantime. It's the reason future cash flows must be discounted.", "uid": "11hj1wh1bmv82d" }, { "id": "mcq-c-investing-201-fact-gordon-growth", "shape": "mcq", "tags": [ "valuation", "dcf" ], "prompt": { "modality": "text", "value": "The ___ model sets terminal value as the final year's FCF grown by a long-term rate g, divided by (r − g). It assumes the company grows at a modest, perpetual rate forever — usually near long-run GDP growth, around 2–3%." }, "options": [ { "modality": "text", "value": "Time value of money" }, { "modality": "text", "value": "WACC" }, { "modality": "text", "value": "Gordon Growth" }, { "modality": "text", "value": "Terminal value" } ], "correctIndex": 2, "derivedFrom": "fact-gordon-growth", "explanation": "The Gordon Growth model is the perpetual-growth approach to terminal value: it takes the final year's FCF, grows it by a modest long-term rate g, and divides by (r − g). Time value of money, WACC, and Terminal value are related but distinct DCF concepts.", "uid": "1kf18hb4hqjtb" }, { "id": "cz-investing-201-fact-business-cycles", "shape": "cloze", "tags": [ "sector-rotation", "cycle" ], "template": "The U.S. economy has run through 12 business cycles since ___, with the average full cycle lasting around 6 years (expansions average about 5 years, contractions about 10 months). Astute investors track which phase the economy is in and rotate their portfolios accordingly.", "answer": "1945", "distractors": [ "1938", "1954", "1921" ], "derivedFrom": "fact-business-cycles", "uid": "187yat5tgqaj1" }, { "id": "cz-investing-201-fact-mag7", "shape": "cloze", "tags": [ "mag7" ], "template": "The '___' is a term coined by Bank of America strategist Michael Hartnett in 2023, referring to a handful of mega-cap technology companies dominating the S&P 500. The name nods to the 1960 Western film. These stocks have set the tone for the entire market.", "answer": "Magnificent Seven", "distractors": [ "FAANG", "Nifty Fifty", "Four Horsemen" ], "derivedFrom": "fact-mag7", "uid": "17qx104wbbbfm" }, { "id": "tf-t-investing-201-pair-cftc", "shape": "trueFalse", "tags": [ "markets-conduct", "regulation", "alphabet-soup" ], "statement": "\"CFTC\" refers to \"Regulates derivatives, futures, swaps, and increasingly crypto\".", "isTrue": true, "why": "CFTC refers to Regulates derivatives, futures, swaps, and increasingly crypto.", "derivedFrom": "pair-cftc", "uid": "lbzqi6kz7kei" }, { "id": "tf-t-investing-201-pair-fdic", "shape": "trueFalse", "tags": [ "bank-oversight", "regulation", "alphabet-soup" ], "statement": "\"FDIC\" refers to \"Insures bank deposits up to $250,000\".", "isTrue": true, "why": "FDIC refers to Insures bank deposits up to $250,000.", "derivedFrom": "pair-fdic", "uid": "l4luj11fmt993" }, { "id": "tf-f-investing-201-pair-occ", "shape": "trueFalse", "tags": [ "bank-oversight", "regulation", "alphabet-soup" ], "statement": "\"OCC\" refers to \"Insures bank deposits up to $250,000\".", "isTrue": false, "why": "OCC actually refers to Regulates national banks and federal savings associations.", "derivedFrom": "pair-occ", "uid": "1k53gxj1iwc6mt" }, { "id": "tf-f-investing-201-pair-cfpb", "shape": "trueFalse", "tags": [ "markets-conduct", "regulation", "alphabet-soup" ], "statement": "\"CFPB\" refers to \"Regulates derivatives, futures, swaps, and increasingly crypto\".", "isTrue": false, "why": "CFPB actually refers to Enforces consumer financial protection laws.", "derivedFrom": "pair-cfpb", "uid": "1sajmnw1edbuzm" }, { "id": "tf-f-investing-201-pair-cyclical-stock", "shape": "trueFalse", "tags": [ "asset-class", "equities", "stock-types" ], "statement": "\"Cyclical stock\" refers to \"Stable regardless of the cycle (e.g., utilities, healthcare, staples)\".", "isTrue": false, "why": "Cyclical stock actually refers to Performance tied to the economic cycle (e.g., automakers, airlines).", "derivedFrom": "pair-cyclical-stock", "uid": "1759dv6162gsky" }, { "id": "tf-t-investing-201-pair-defensive-stock", "shape": "trueFalse", "tags": [ "asset-class", "equities", "stock-types" ], "statement": "\"Defensive stock\" refers to \"Stable regardless of the cycle (e.g., utilities, healthcare, staples)\".", "isTrue": true, "why": "Defensive stock refers to Stable regardless of the cycle (e.g., utilities, healthcare, staples).", "derivedFrom": "pair-defensive-stock", "uid": "1eglfz2xtyhde" }, { "id": "tf-t-investing-201-pair-coupon", "shape": "trueFalse", "tags": [ "asset-class", "bonds" ], "statement": "\"Coupon\" refers to \"The fixed interest rate a bond pays its holder\".", "isTrue": true, "why": "Coupon refers to The fixed interest rate a bond pays its holder.", "derivedFrom": "pair-coupon", "uid": "19karqi1w996fe" }, { "id": "tf-f-investing-201-pair-hodl", "shape": "trueFalse", "tags": [ "asset-class", "crypto" ], "statement": "\"HODLing\" refers to \"The fixed interest rate a bond pays its holder\".", "isTrue": false, "why": "HODLing actually refers to Buying and holding crypto through volatility for long-term gains.", "derivedFrom": "pair-hodl", "uid": "g1jceiwwzwdi" }, { "id": "tf-t-investing-201-pair-revenue", "shape": "trueFalse", "tags": [ "top-line", "statements", "income-statement" ], "statement": "\"Revenue (top line)\" refers to \"Total sales generated over a period\".", "isTrue": true, "why": "Revenue (top line) refers to Total sales generated over a period.", "derivedFrom": "pair-revenue", "uid": "vjqqjj1nurjtr" }, { "id": "tf-f-investing-201-pair-net-income", "shape": "trueFalse", "tags": [ "bottom-line", "statements", "income-statement" ], "statement": "\"Net income (bottom line)\" refers to \"Cash used for capital expenditures, acquisitions, or investments (usually negative)\".", "isTrue": false, "why": "Net income (bottom line) actually refers to What's left after all expenses, interest, and taxes.", "derivedFrom": "pair-net-income", "uid": "1xu5voq1po67zu" }, { "id": "tf-t-investing-201-pair-eps", "shape": "trueFalse", "tags": [ "bottom-line", "statements", "income-statement" ], "statement": "\"EPS (earnings per share)\" refers to \"Net income divided by shares outstanding\".", "isTrue": true, "why": "EPS (earnings per share) refers to Net income divided by shares outstanding.", "derivedFrom": "pair-eps", "uid": "1xf83usxh4tso" }, { "id": "tf-t-investing-201-pair-ocf", "shape": "trueFalse", "tags": [ "statements", "cash-flow" ], "statement": "\"Operating cash flow\" refers to \"Cash generated by core business operations\".", "isTrue": true, "why": "Operating cash flow refers to Cash generated by core business operations.", "derivedFrom": "pair-ocf", "uid": "1pvycbud1vbvc" }, { "id": "tf-f-investing-201-pair-investing-cf", "shape": "trueFalse", "tags": [ "statements", "cash-flow" ], "statement": "\"Investing cash flow\" refers to \"What's left after all expenses, interest, and taxes\".", "isTrue": false, "why": "Investing cash flow actually refers to Cash used for capital expenditures, acquisitions, or investments (usually negative).", "derivedFrom": "pair-investing-cf", "uid": "1nyvmuu93jzes" }, { "id": "tf-f-investing-201-pair-financing-cf", "shape": "trueFalse", "tags": [ "statements", "cash-flow" ], "statement": "\"Financing cash flow\" refers to \"What's left after all expenses, interest, and taxes\".", "isTrue": false, "why": "Financing cash flow actually refers to Cash from issuing/repaying debt, buybacks, or dividends.", "derivedFrom": "pair-financing-cf", "uid": "ukpozk193uxfa" }, { "id": "tf-f-investing-201-pair-ev-ebitda-use", "shape": "trueFalse", "tags": [ "valuation", "metrics" ], "statement": "\"EV/EBITDA\" refers to \"Signals a stock may be undervalued relative to its growth\".", "isTrue": false, "why": "EV/EBITDA actually refers to Best for M&A and comparing companies with different capital structures.", "derivedFrom": "pair-ev-ebitda-use", "uid": "1y8k3i71ncwqd7" }, { "id": "tf-f-investing-201-pair-ps-use", "shape": "trueFalse", "tags": [ "valuation", "metrics" ], "statement": "\"Price-to-Sales\" refers to \"Best for banks and asset-heavy industries\".", "isTrue": false, "why": "Price-to-Sales actually refers to Best for pre-profit, high-growth companies.", "derivedFrom": "pair-ps-use", "uid": "frdhrw10fnliw" }, { "id": "tf-t-investing-201-pair-peg-use", "shape": "trueFalse", "tags": [ "valuation", "metrics" ], "statement": "\"PEG below 1.0\" refers to \"Signals a stock may be undervalued relative to its growth\".", "isTrue": true, "why": "PEG below 1.0 refers to Signals a stock may be undervalued relative to its growth.", "derivedFrom": "pair-peg-use", "uid": "dkrfwf1da2np" }, { "id": "tf-t-investing-201-pair-spy", "shape": "trueFalse", "tags": [ "strategy", "index", "etf" ], "statement": "\"SPY\" refers to \"ETF tracking the S&P 500\".", "isTrue": true, "why": "SPY refers to ETF tracking the S&P 500.", "derivedFrom": "pair-spy", "uid": "r6bnan1rbjflb" }, { "id": "tf-f-investing-201-pair-qqq", "shape": "trueFalse", "tags": [ "strategy", "index", "etf" ], "statement": "\"QQQ\" refers to \"Holding for months based on macro and fundamental views\".", "isTrue": false, "why": "QQQ actually refers to ETF tracking the Nasdaq 100.", "derivedFrom": "pair-qqq", "uid": "3pb2051p2lm41" }, { "id": "tf-f-investing-201-pair-vti", "shape": "trueFalse", "tags": [ "strategy", "index", "etf" ], "statement": "\"VTI\" refers to \"Holding for months based on macro and fundamental views\".", "isTrue": false, "why": "VTI actually refers to ETF tracking the total U.S. stock market.", "derivedFrom": "pair-vti", "uid": "dgrtkt1svarm1" }, { "id": "tf-f-investing-201-pair-growth-investing", "shape": "trueFalse", "tags": [ "investing-style", "strategy", "growth" ], "statement": "\"Growth investing\" refers to \"Holding for days to weeks based on technical patterns\".", "isTrue": false, "why": "Growth investing actually refers to Pay premium prices for companies expanding revenue and earnings fast.", "derivedFrom": "pair-growth-investing", "uid": "w5es0u188n4aa" }, { "id": "tf-t-investing-201-pair-swing-trading", "shape": "trueFalse", "tags": [ "trading-style", "strategy", "trading" ], "statement": "\"Swing trading\" refers to \"Holding for days to weeks based on technical patterns\".", "isTrue": true, "why": "Swing trading refers to Holding for days to weeks based on technical patterns.", "derivedFrom": "pair-swing-trading", "uid": "1r6jwoiu82tpe" }, { "id": "tf-f-investing-201-pair-position-trading", "shape": "trueFalse", "tags": [ "trading-style", "strategy", "trading" ], "statement": "\"Position trading\" refers to \"Pay premium prices for companies expanding revenue and earnings fast\".", "isTrue": false, "why": "Position trading actually refers to Holding for months based on macro and fundamental views.", "derivedFrom": "pair-position-trading", "uid": "j8cohe151mxzo" }, { "id": "tf-t-investing-201-pair-early-cycle", "shape": "trueFalse", "tags": [ "sector-rotation", "cycle" ], "statement": "\"Early cycle (recovery)\" refers to \"Financials, consumer discretionary, real estate outperform\".", "isTrue": true, "why": "Early cycle (recovery) refers to Financials, consumer discretionary, real estate outperform.", "derivedFrom": "pair-early-cycle", "uid": "1myj488yb1rfc" }, { "id": "tf-f-investing-201-pair-late-cycle", "shape": "trueFalse", "tags": [ "sector-rotation", "cycle" ], "statement": "\"Late cycle (slowing, inflation)\" refers to \"Cash from issuing/repaying debt, buybacks, or dividends\".", "isTrue": false, "why": "Late cycle (slowing, inflation) actually refers to Energy, materials, consumer staples outperform.", "derivedFrom": "pair-late-cycle", "uid": "1g6f1m21ls622s" }, { "id": "tf-f-investing-201-pair-recession-sectors", "shape": "trueFalse", "tags": [ "sector-rotation", "cycle" ], "statement": "\"Recession\" refers to \"Financials, consumer discretionary, real estate outperform\".", "isTrue": false, "why": "Recession actually refers to Utilities, healthcare, consumer staples hold up best.", "derivedFrom": "pair-recession-sectors", "uid": "1268gd91yqm6if" }, { "id": "tf-f-investing-201-pair-mag7-coiner", "shape": "trueFalse", "tags": [ "mag7" ], "statement": "\"'Magnificent Seven' term\" refers to \"Moat: ecosystem lock-in and brand loyalty\".", "isTrue": false, "why": "'Magnificent Seven' term actually refers to being coined by BofA strategist Michael Hartnett in 2023 — the moat description belongs to Apple, not to the origin of the Mag 7 name.", "derivedFrom": "pair-mag7-coiner", "uid": "kjfp5ddj1f7f" }, { "id": "tf-f-investing-201-pair-dividend-yield", "shape": "trueFalse", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "statement": "\"Dividend yield\" means \"Initial Public Offering — a private company's first sale of stock to the public\".", "isTrue": false, "why": "Dividend yield actually means Annual dividend per share divided by the stock price.", "derivedFrom": "pair-dividend-yield", "uid": "je6cqyt71j2q" }, { "id": "tf-t-investing-201-pair-recall-nasdaq", "shape": "trueFalse", "tags": [ "institutions", "recall" ], "statement": "\"Nasdaq\" refers to \"World's first electronic stock market (1971)\".", "isTrue": true, "why": "Nasdaq refers to World's first electronic stock market (1971).", "derivedFrom": "pair-recall-nasdaq", "uid": "zw32kp1te4brj" }, { "id": "tf-f-investing-201-pair-recall-rule72", "shape": "trueFalse", "tags": [ "concepts-metrics", "recall" ], "statement": "\"Rule of 72\" refers to \"A durable competitive advantage\".", "isTrue": false, "why": "Rule of 72 actually refers to 72 ÷ return = years to double your money.", "derivedFrom": "pair-recall-rule72", "uid": "j4l9nbvi1fo9" }, { "id": "tf-t-investing-201-pair-recall-margin", "shape": "trueFalse", "tags": [ "concepts-metrics", "recall" ], "statement": "\"Margin of safety\" refers to \"Buy well below intrinsic value\".", "isTrue": true, "why": "Margin of safety refers to Buy well below intrinsic value.", "derivedFrom": "pair-recall-margin", "uid": "55g9b01yp7y3o" }, { "id": "tf-f-investing-201-pair-recall-fcf", "shape": "trueFalse", "tags": [ "concepts-metrics", "recall" ], "statement": "\"Free cash flow\" refers to \"Buy well below intrinsic value\".", "isTrue": false, "why": "Free cash flow actually refers to Operating cash flow minus capital expenditures.", "derivedFrom": "pair-recall-fcf", "uid": "bhrp6vhs20tr" }, { "id": "tf-t-investing-201-pair-recall-dca", "shape": "trueFalse", "tags": [ "strategy-people", "recall" ], "statement": "\"Dollar-cost averaging\" refers to \"Invest a fixed amount at regular intervals\".", "isTrue": true, "why": "Dollar-cost averaging refers to Invest a fixed amount at regular intervals.", "derivedFrom": "pair-recall-dca", "uid": "z141zn13ddkt3" }, { "id": "tf-f-investing-201-pair-recall-roth", "shape": "trueFalse", "tags": [ "strategy-people", "recall" ], "statement": "Roth IRA is \"Invest a fixed amount at regular intervals\".", "isTrue": false, "why": "Roth IRA actually is Tax-free growth and withdrawals.", "derivedFrom": "pair-recall-roth", "uid": "y48pxd1wmmdzv" }, { "id": "tf-f-investing-201-q-inv-first-listed", "shape": "trueFalse", "tags": [ "history", "exchange" ], "statement": "\"First company listed on the NYSE\" is \"A 12-foot wooden wall Dutch settlers built in 1653\".", "isTrue": false, "why": "First company listed on the NYSE actually is The Bank of New York.", "derivedFrom": "q-inv-first-listed", "uid": "s63qvd51mjb" }, { "id": "tf-t-investing-201-q-inv-wall-origin", "shape": "trueFalse", "tags": [ "history", "exchange" ], "statement": "\"Origin of the name Wall Street\" refers to \"A 12-foot wooden wall Dutch settlers built in 1653\".", "isTrue": true, "why": "Origin of the name Wall Street refers to A 12-foot wooden wall Dutch settlers built in 1653.", "derivedFrom": "q-inv-wall-origin", "uid": "g1mlbd1pm3kez" }, { "id": "tf-f-investing-201-q-inv-compound-3-5m", "shape": "trueFalse", "tags": [ "foundation", "compounding" ], "statement": "\"Result of adding $500 a month to the $10,000 example\" refers to \"Best for pre-profit, high-growth companies\".", "isTrue": false, "why": "Result of adding $500 a month to the $10,000 example actually refers to An ending value above $3.5 million by age 65.", "derivedFrom": "q-inv-compound-3-5m", "uid": "u6nstp1xxzxj9" }, { "id": "tf-t-investing-201-q-inv-sp500-1957", "shape": "trueFalse", "tags": [ "foundation", "compounding" ], "statement": "\"Value by 2025 of $100 invested in the S&P 500 in 1957\" refers to \"About $106,000 in nominal terms\".", "isTrue": true, "why": "Value by 2025 of $100 invested in the S&P 500 in 1957 refers to About $106,000 in nominal terms.", "derivedFrom": "q-inv-sp500-1957", "uid": "csenj2gjqz6" }, { "id": "tf-df-investing-201-definition-nasdaq", "shape": "trueFalse", "tags": [ "history", "nasdaq", "vocabulary" ], "statement": "P/S ratio: National Association of Securities Dealers Automated Quotations — the world's first fully electronic stock market, built to broadcast dealer quotes rather than run a trading floor.", "isTrue": false, "why": "That's the definition of \"NASDAQ\", not \"P/S ratio\".", "derivedFrom": "definition-nasdaq", "uid": "1j3xi6a1z6che" }, { "id": "tf-d-investing-201-definition-sec", "shape": "trueFalse", "tags": [ "regulation", "sec", "vocabulary" ], "statement": "SEC: Securities and Exchange Commission — the federal agency that regulates publicly traded companies and securities markets, enforcing disclosure and anti-fraud rules.", "isTrue": true, "why": "That definition is correct for \"SEC\".", "derivedFrom": "definition-sec", "uid": "1r2br8e1kvdty2" }, { "id": "tf-df-investing-201-definition-stock", "shape": "trueFalse", "tags": [ "asset-class", "equities", "vocabulary" ], "statement": "Bond: An ownership stake in a company.", "isTrue": false, "why": "That's the definition of \"Stock\", not \"Bond\".", "derivedFrom": "definition-stock", "uid": "qjfzivjzccez" }, { "id": "tf-d-investing-201-definition-bond", "shape": "trueFalse", "tags": [ "asset-class", "bonds", "vocabulary" ], "statement": "Bond: A loan made by an investor to a corporation or government.", "isTrue": true, "why": "That definition is correct for \"Bond\".", "derivedFrom": "definition-bond", "uid": "esu97v5c1lkd" }, { "id": "tf-df-investing-201-definition-blockchain", "shape": "trueFalse", "tags": [ "asset-class", "crypto", "vocabulary" ], "statement": "Bond: A decentralized, public ledger maintained by a global network of computers, enabling peer-to-peer transfer of value without a central intermediary.", "isTrue": false, "why": "That's the definition of \"Blockchain\", not \"Bond\".", "derivedFrom": "definition-blockchain", "uid": "rey2pqecjhnq" }, { "id": "tf-df-investing-201-definition-reit", "shape": "trueFalse", "tags": [ "asset-class", "real-estate", "vocabulary" ], "statement": "Bond: Real Estate Investment Trust — a publicly traded company that owns income-producing real estate and is required by law to distribute at least 90% of taxable income as dividends.", "isTrue": false, "why": "That's the definition of \"REIT\", not \"Bond\".", "derivedFrom": "definition-reit", "uid": "hwpp7i1e4lfpm" }, { "id": "tf-df-investing-201-definition-mr-market", "shape": "trueFalse", "tags": [ "value-investing", "graham", "vocabulary" ], "statement": "Intrinsic value: Graham's metaphor for the stock market: an irrational business partner who offers you a price every day — sometimes euphorically high, sometimes despairingly low.", "isTrue": false, "why": "That's the definition of \"Mr. Market\", not \"Intrinsic value\".", "derivedFrom": "definition-mr-market", "uid": "1p0gi8i1m3jdme" }, { "id": "tf-d-investing-201-definition-intrinsic-value", "shape": "trueFalse", "tags": [ "value-investing", "graham", "vocabulary" ], "statement": "Intrinsic value: What a company is actually worth based on its business fundamentals, independent of its current market price.", "isTrue": true, "why": "That definition is correct for \"Intrinsic value\".", "derivedFrom": "definition-intrinsic-value", "uid": "1mbqv1o4eczv8" }, { "id": "tf-d-investing-201-definition-margin-of-safety", "shape": "trueFalse", "tags": [ "value-investing", "margin-of-safety", "vocabulary" ], "statement": "Margin of safety: The difference between a stock's intrinsic value and its current market price.", "isTrue": true, "why": "That definition is correct for \"Margin of safety\".", "derivedFrom": "definition-margin-of-safety", "uid": "1cpshzn1ltd46h" }, { "id": "tf-d-investing-201-definition-roic", "shape": "trueFalse", "tags": [ "value-investing", "roic", "vocabulary" ], "statement": "ROIC: Return on Invested Capital = NOPAT (net operating profit after tax) divided by invested capital.", "isTrue": true, "why": "That definition is correct for \"ROIC\".", "derivedFrom": "definition-roic", "uid": "1g5lggn16yc6yl" }, { "id": "tf-d-investing-201-definition-moat", "shape": "trueFalse", "tags": [ "value-investing", "moat", "vocabulary" ], "statement": "Economic moat: Warren Buffett's term for a durable competitive advantage that protects a company's market position — network effects, switching costs, cost advantages, or intangible assets like brand.", "isTrue": true, "why": "That definition is correct for \"Economic moat\".", "derivedFrom": "definition-moat", "uid": "1t7tkoo1pc754w" }, { "id": "tf-d-investing-201-definition-ebitda", "shape": "trueFalse", "tags": [ "bottom-line", "statements", "income-statement", "vocabulary" ], "statement": "EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization — operating income plus depreciation and amortization, used as a rough proxy for cash generation.", "isTrue": true, "why": "That definition is correct for \"EBITDA\".", "derivedFrom": "definition-ebitda", "uid": "1tkxxpr1l7l92j" }, { "id": "tf-d-investing-201-definition-gross-margin", "shape": "trueFalse", "tags": [ "top-line", "statements", "income-statement", "vocabulary" ], "statement": "Gross margin: Gross profit divided by revenue.", "isTrue": true, "why": "That definition is correct for \"Gross margin\".", "derivedFrom": "definition-gross-margin", "uid": "duru38wb905g" }, { "id": "tf-d-investing-201-definition-balance-equation", "shape": "trueFalse", "tags": [ "statements", "balance-sheet", "vocabulary" ], "statement": "The accounting equation: Assets = Liabilities + Shareholders' Equity.", "isTrue": true, "why": "That definition is correct for \"The accounting equation\".", "derivedFrom": "definition-balance-equation", "uid": "1m8l8p8dn8h4i" }, { "id": "tf-d-investing-201-definition-current-ratio", "shape": "trueFalse", "tags": [ "statements", "balance-sheet", "vocabulary" ], "statement": "Current ratio: Current assets divided by current liabilities — a measure of short-term liquidity.", "isTrue": true, "why": "That definition is correct for \"Current ratio\".", "derivedFrom": "definition-current-ratio", "uid": "jjji3t1l68f29" }, { "id": "tf-d-investing-201-definition-debt-to-equity", "shape": "trueFalse", "tags": [ "statements", "balance-sheet", "vocabulary" ], "statement": "Debt-to-equity: Total liabilities divided by total equity — a measure of financial leverage and risk.", "isTrue": true, "why": "That definition is correct for \"Debt-to-equity\".", "derivedFrom": "definition-debt-to-equity", "uid": "c7g5itnc3etx" }, { "id": "tf-d-investing-201-definition-fcf", "shape": "trueFalse", "tags": [ "statements", "cash-flow", "vocabulary" ], "statement": "Free cash flow (FCF): Operating cash flow minus capital expenditures — the cash a company generates after maintaining and growing its assets.", "isTrue": true, "why": "That definition is correct for \"Free cash flow (FCF)\".", "derivedFrom": "definition-fcf", "uid": "1s9iofb1kdia1b" }, { "id": "tf-d-investing-201-definition-time-value", "shape": "trueFalse", "tags": [ "valuation", "dcf", "vocabulary" ], "statement": "Time value of money: The principle that a dollar today is worth more than a dollar in the future, because today's dollar can be invested to earn returns in the meantime.", "isTrue": true, "why": "That definition is correct for \"Time value of money\".", "derivedFrom": "definition-time-value", "uid": "1ntfn4x1doptud" }, { "id": "tf-df-investing-201-definition-wacc", "shape": "trueFalse", "tags": [ "valuation", "dcf", "vocabulary" ], "statement": "Time value of money: Weighted Average Cost of Capital — the blended cost of all capital, equity and debt, used to fund a business.", "isTrue": false, "why": "That's the definition of \"WACC\", not \"Time value of money\".", "derivedFrom": "definition-wacc", "uid": "1ip82gf1vc49pb" }, { "id": "tf-df-investing-201-definition-terminal-value", "shape": "trueFalse", "tags": [ "valuation", "dcf", "vocabulary" ], "statement": "Time value of money: The value of all a company's cash flows beyond the explicit projection period, capturing the bulk of a DCF's output.", "isTrue": false, "why": "That's the definition of \"Terminal value\", not \"Time value of money\".", "derivedFrom": "definition-terminal-value", "uid": "4cxnko17ro4oc" }, { "id": "tf-d-investing-201-definition-enterprise-value", "shape": "trueFalse", "tags": [ "valuation", "vocabulary" ], "statement": "Enterprise value (EV): Market capitalization plus debt minus cash — the total cost to acquire a company outright.", "isTrue": true, "why": "That definition is correct for \"Enterprise value (EV)\".", "derivedFrom": "definition-enterprise-value", "uid": "wisv9n8yprf3" }, { "id": "tf-d-investing-201-definition-pe", "shape": "trueFalse", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "statement": "P/E ratio: Price-to-Earnings = stock price divided by earnings per share.", "isTrue": true, "why": "That definition is correct for \"P/E ratio\".", "derivedFrom": "definition-pe", "uid": "jd3lghzmvua1" }, { "id": "tf-d-investing-201-definition-ev-ebitda", "shape": "trueFalse", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "statement": "EV/EBITDA: Enterprise value divided by EBITDA.", "isTrue": true, "why": "That definition is correct for \"EV/EBITDA\".", "derivedFrom": "definition-ev-ebitda", "uid": "1d142ki1x4ws9i" }, { "id": "tf-d-investing-201-definition-ps", "shape": "trueFalse", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "statement": "P/S ratio: Price-to-Sales = market cap divided by annual revenue.", "isTrue": true, "why": "That definition is correct for \"P/S ratio\".", "derivedFrom": "definition-ps", "uid": "1xc3sgxsjrzfh" }, { "id": "tf-df-investing-201-definition-peg", "shape": "trueFalse", "tags": [ "earnings-multiple", "valuation", "metrics", "vocabulary" ], "statement": "P/E ratio: Price/Earnings-to-Growth = P/E divided by the earnings growth rate.", "isTrue": false, "why": "That's the definition of \"PEG ratio\", not \"P/E ratio\".", "derivedFrom": "definition-peg", "uid": "1n70c0pm3kbvl" }, { "id": "tf-d-investing-201-definition-fcf-yield", "shape": "trueFalse", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "statement": "FCF yield: Free cash flow divided by market cap — the inverse of a price-to-FCF ratio.", "isTrue": true, "why": "That definition is correct for \"FCF yield\".", "derivedFrom": "definition-fcf-yield", "uid": "14a71cc1wemowc" }, { "id": "tf-df-investing-201-definition-pb", "shape": "trueFalse", "tags": [ "asset-cash-multiple", "valuation", "metrics", "vocabulary" ], "statement": "FCF yield: Price-to-Book = stock price divided by book value per share.", "isTrue": false, "why": "That's the definition of \"P/B ratio\", not \"FCF yield\".", "derivedFrom": "definition-pb", "uid": "1vwrsey1blx5b6" }, { "id": "tf-df-investing-201-definition-index-fund", "shape": "trueFalse", "tags": [ "strategy", "index", "vocabulary" ], "statement": "ETF: A fund that tracks a market index (like the S&P 500) by buying all its constituents in proportion to their weight.", "isTrue": false, "why": "That's the definition of \"Index fund\", not \"ETF\".", "derivedFrom": "definition-index-fund", "uid": "hv4cp814cvmu8" }, { "id": "tf-d-investing-201-definition-etf", "shape": "trueFalse", "tags": [ "strategy", "index", "vocabulary" ], "statement": "ETF: Exchange-Traded Fund — like an index fund but trades intraday on an exchange like a stock.", "isTrue": true, "why": "That definition is correct for \"ETF\".", "derivedFrom": "definition-etf", "uid": "yibzxwt1g9l2" }, { "id": "tf-df-investing-201-definition-dividend-aristocrat", "shape": "trueFalse", "tags": [ "investing-style", "strategy", "dividend", "vocabulary" ], "statement": "Dollar-cost averaging (DCA): An S&P 500 company that has raised its dividend for 25+ consecutive years.", "isTrue": false, "why": "That's the definition of \"Dividend Aristocrat\", not \"Dollar-cost averaging (DCA)\".", "derivedFrom": "definition-dividend-aristocrat", "uid": "j2oz4zen2bqh" }, { "id": "tf-df-investing-201-definition-dca", "shape": "trueFalse", "tags": [ "investing-style", "strategy", "dca", "vocabulary" ], "statement": "Dividend Aristocrat: Investing a fixed dollar amount at regular intervals regardless of price.", "isTrue": false, "why": "That's the definition of \"Dollar-cost averaging (DCA)\", not \"Dividend Aristocrat\".", "derivedFrom": "definition-dca", "uid": "19iw6u510jq769" }, { "id": "tf-df-investing-201-definition-gics", "shape": "trueFalse", "tags": [ "sector-rotation", "gics", "vocabulary" ], "statement": "ESG investing: Global Industry Classification Standard — the system that organizes the S&P 500 into 11 sectors, from Information Technology and Financials to Utilities and Energy.", "isTrue": false, "why": "That's the definition of \"GICS\", not \"ESG investing\".", "derivedFrom": "definition-gics", "uid": "3rjp2v1ajipoh" }, { "id": "tf-df-investing-201-definition-bull-market", "shape": "trueFalse", "tags": [ "market-mood", "vocabulary", "market-basics" ], "statement": "Correction: A market environment of rising prices and investor optimism, typically defined as a 20%+ rise from a recent low.", "isTrue": false, "why": "That's the definition of \"Bull market\", not \"Correction\".", "derivedFrom": "definition-bull-market", "uid": "1m9y8wz1n2gqxn" }, { "id": "tf-d-investing-201-definition-bear-market", "shape": "trueFalse", "tags": [ "market-mood", "vocabulary", "market-basics" ], "statement": "Bear market: A market decline of 20% or more from a recent high, marked by pessimism and selling.", "isTrue": true, "why": "That definition is correct for \"Bear market\".", "derivedFrom": "definition-bear-market", "uid": "1firsil1xx0m1h" }, { "id": "tf-df-investing-201-definition-correction", "shape": "trueFalse", "tags": [ "market-mood", "vocabulary", "market-basics" ], "statement": "Volatility / VIX: A decline of 10–20% from a recent peak — normal, historically frequent, and usually short-lived.", "isTrue": false, "why": "That's the definition of \"Correction\", not \"Volatility / VIX\".", "derivedFrom": "definition-correction", "uid": "33b6mha5wv0x" }, { "id": "tf-d-investing-201-definition-volatility-vix", "shape": "trueFalse", "tags": [ "market-mood", "vocabulary", "market-basics" ], "statement": "Volatility / VIX: Volatility is the statistical measure of price fluctuation.", "isTrue": true, "why": "That definition is correct for \"Volatility / VIX\".", "derivedFrom": "definition-volatility-vix", "uid": "spfphw12qnphu" }, { "id": "tf-d-investing-201-definition-blue-chip", "shape": "trueFalse", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "statement": "Blue chip: A large, well-established, financially sound company with a long track record of reliable performance.", "isTrue": true, "why": "That definition is correct for \"Blue chip\".", "derivedFrom": "definition-blue-chip", "uid": "qxx2k3p8igfj" }, { "id": "tf-df-investing-201-definition-ipo", "shape": "trueFalse", "tags": [ "stock-feature", "vocabulary", "market-basics" ], "statement": "Blue chip: Initial Public Offering — a private company's first sale of stock to the public, the moment it begins trading on an exchange.", "isTrue": false, "why": "That's the definition of \"IPO\", not \"Blue chip\".", "derivedFrom": "definition-ipo", "uid": "v19peg1i65232" }, { "id": "tf-df-investing-201-definition-alpha", "shape": "trueFalse", "tags": [ "market-metrics", "vocabulary", "advanced" ], "statement": "Float: Returns above a benchmark — for example, beating the S&P 500.", "isTrue": false, "why": "That's the definition of \"Alpha\", not \"Float\".", "derivedFrom": "definition-alpha", "uid": "rxscgzrjn1kb" }, { "id": "tf-df-investing-201-definition-beta", "shape": "trueFalse", "tags": [ "market-metrics", "vocabulary", "advanced" ], "statement": "Float: A stock's sensitivity to market moves.", "isTrue": false, "why": "That's the definition of \"Beta\", not \"Float\".", "derivedFrom": "definition-beta", "uid": "cby36q1cqnb56" }, { "id": "tf-df-investing-201-definition-float", "shape": "trueFalse", "tags": [ "market-metrics", "vocabulary", "advanced" ], "statement": "Beta: The number of shares available for public trading — total shares minus insider holdings and restricted stock.", "isTrue": false, "why": "That's the definition of \"Float\", not \"Beta\".", "derivedFrom": "definition-float", "uid": "1vx2i3w2wans4" }, { "id": "tf-d-investing-201-definition-short-selling", "shape": "trueFalse", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "statement": "Short selling: Borrowing shares to sell them, hoping to buy them back cheaper later.", "isTrue": true, "why": "That definition is correct for \"Short selling\".", "derivedFrom": "definition-short-selling", "uid": "1rlrzvfsqy1f5" }, { "id": "tf-d-investing-201-definition-hedge", "shape": "trueFalse", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "statement": "Hedge: Taking an offsetting position to reduce risk — for example, buying put options as insurance on a stock portfolio.", "isTrue": true, "why": "That definition is correct for \"Hedge\".", "derivedFrom": "definition-hedge", "uid": "18c9mvccmm4xo" }, { "id": "tf-df-investing-201-definition-options", "shape": "trueFalse", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "statement": "Buyback: Contracts giving the right, but not the obligation, to buy (call) or sell (put) a stock at a set price by a set date.", "isTrue": false, "why": "That's the definition of \"Options\", not \"Buyback\".", "derivedFrom": "definition-options", "uid": "rjzalg1skiiom" }, { "id": "tf-d-investing-201-definition-buyback", "shape": "trueFalse", "tags": [ "trading-techniques", "vocabulary", "advanced" ], "statement": "Buyback: A share repurchase — a company uses cash to buy its own stock, reducing the share count and increasing earnings per share.", "isTrue": true, "why": "That definition is correct for \"Buyback\".", "derivedFrom": "definition-buyback", "uid": "x8a7621cd3ubo" }, { "id": "tf-df-investing-201-definition-sp500", "shape": "trueFalse", "tags": [ "vocabulary", "index" ], "statement": "Russell 2000: A market-cap-weighted index of the 500 largest U.S. public companies — the most widely used benchmark for the U.S. stock market.", "isTrue": false, "why": "That's the definition of \"S&P 500\", not \"Russell 2000\".", "derivedFrom": "definition-sp500", "uid": "b9hw24rr7yc2" }, { "id": "tf-df-investing-201-definition-djia", "shape": "trueFalse", "tags": [ "vocabulary", "index" ], "statement": "S&P 500: A price-weighted index of 30 large U.S. companies — the oldest benchmark, but less representative of the broad market than the S&P 500.", "isTrue": false, "why": "That's the definition of \"Dow Jones Industrial Average\", not \"S&P 500\".", "derivedFrom": "definition-djia", "uid": "1jyr8en1ypnxdj" }, { "id": "tf-d-investing-201-definition-russell-2000", "shape": "trueFalse", "tags": [ "vocabulary", "index" ], "statement": "Russell 2000: An index of 2,000 small-cap U.S. companies — the standard benchmark for small-cap performance.", "isTrue": true, "why": "That definition is correct for \"Russell 2000\".", "derivedFrom": "definition-russell-2000", "uid": "na7z7717ilpwh" }, { "id": "tf-df-investing-201-definition-defi", "shape": "trueFalse", "tags": [ "future", "defi", "vocabulary" ], "statement": "ESG investing: Decentralized Finance — blockchain-based smart contracts that recreate lending, borrowing, and trading without traditional intermediaries.", "isTrue": false, "why": "That's the definition of \"DeFi\", not \"ESG investing\".", "derivedFrom": "definition-defi", "uid": "vz8scblfb7kt" }, { "id": "tf-d-investing-201-definition-esg", "shape": "trueFalse", "tags": [ "future", "esg", "vocabulary" ], "statement": "ESG investing: Environmental, Social, and Governance investing — evaluating companies on non-financial factors alongside financial performance.", "isTrue": true, "why": "That definition is correct for \"ESG investing\".", "derivedFrom": "definition-esg", "uid": "150oj0bwmhx6r" }, { "id": "tf-df-investing-201-definition-401k", "shape": "trueFalse", "tags": [ "foundation", "accounts", "vocabulary" ], "statement": "Traditional IRA: An employer-sponsored, pre-tax retirement account.", "isTrue": false, "why": "That's the definition of \"401(k)\", not \"Traditional IRA\".", "derivedFrom": "definition-401k", "uid": "1jsx8mb1hcavqt" }, { "id": "tf-df-investing-201-definition-ira", "shape": "trueFalse", "tags": [ "foundation", "accounts", "vocabulary" ], "statement": "Roth IRA: An individual pre-tax retirement account.", "isTrue": false, "why": "That's the definition of \"Traditional IRA\", not \"Roth IRA\".", "derivedFrom": "definition-ira", "uid": "gtwmf3f6zdud" }, { "id": "tf-df-investing-201-definition-roth-ira", "shape": "trueFalse", "tags": [ "foundation", "accounts", "vocabulary" ], "statement": "Traditional IRA: An individual retirement account funded with post-tax dollars — but all growth and qualified withdrawals are completely tax-free, making it one of the most powerful long-term wealth vehicles.", "isTrue": false, "why": "That's the definition of \"Roth IRA\", not \"Traditional IRA\".", "derivedFrom": "definition-roth-ira", "uid": "gr3zjjpf6y5f" }, { "id": "tf-df-investing-201-definition-hsa", "shape": "trueFalse", "tags": [ "foundation", "accounts", "vocabulary" ], "statement": "Traditional IRA: Health Savings Account — a triple-tax-advantaged account: pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses.", "isTrue": false, "why": "That's the definition of \"HSA\", not \"Traditional IRA\".", "derivedFrom": "definition-hsa", "uid": "31hbah4bpm2v" }, { "id": "concept-rw-investing-201-nvidia", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "mag7", "tech" ], "name": "Nvidia", "clues": [ "A Magnificent Seven member whose durable moat rests on a proprietary software ecosystem paired with its own chip architecture.", "That combination has made it the default platform for AI training; investors watch its data-center revenue and demand for its top-end GPUs.", "It briefly hit a $5 trillion market capitalization in October 2025 — the most valuable company in history to that point — after a roughly 1,500% five-year climb." ], "uid": "1fyrs3m1u8z9za" }, { "id": "concept-rw-investing-201-apple", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "mag7", "tech" ], "name": "Apple", "clues": [ "Among the Magnificent Seven, this company's durable advantage comes from fierce brand loyalty and a tightly integrated product ecosystem that locks customers in.", "The single metric analysts watch for it is Services revenue growth." ], "uid": "p5v3pa1wwfevq" }, { "id": "concept-rw-investing-201-amazon", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "mag7", "tech" ], "name": "Amazon", "clues": [ "This Magnificent Seven company pairs enormous cloud-computing scale with an unrivaled logistics and delivery network.", "For it, the number that matters most is AWS operating income." ], "uid": "4fs8l01l4r0h2" }, { "id": "concept-rw-investing-201-tesla", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "mag7", "tech" ], "name": "Tesla", "clues": [ "This Magnificent Seven company's moat rests on brand strength and deep vertical integration across its operations.", "It also leans on a proprietary Supercharger network; investors track its delivery numbers and the attach rate of its self-driving software." ], "uid": "dfhpyu4bylqk" }, { "id": "concept-rw-investing-201-meta", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "mag7", "tech" ], "name": "Meta", "clues": [ "This Magnificent Seven company's moat is the powerful network effects of the social platforms it owns, backed by a formidable ad-targeting machine.", "Those platforms are Facebook, Instagram, and WhatsApp; the tells for it are daily active users and ad revenue." ], "uid": "1ajlesv13boxi9" }, { "id": "concept-rw-investing-201-s-p-500", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "indexes", "benchmark" ], "name": "S&P 500", "clues": [ "The single most widely used benchmark for the U.S. stock market.", "It's market-cap-weighted, so its giants dominate its moves — exactly why the Magnificent Seven wield such outsized influence over it.", "It holds the largest U.S. public companies and is the index people usually mean when they say 'the market.'" ], "uid": "1s75h441nfvcvm" }, { "id": "concept-rw-investing-201-dow-jones-industrial-average", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "indexes", "benchmark" ], "name": "Dow Jones Industrial Average", "clues": [ "The oldest stock-market benchmark still in use.", "It's price-weighted, so a high-priced stock sways it more than a far larger company with a lower share price.", "It tracks just 30 large companies — a charming but imperfect gauge of the broad economy." ], "uid": "1jaq5i71p54p4p" }, { "id": "concept-rw-investing-201-nasdaq-composite", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "indexes", "benchmark" ], "name": "Nasdaq Composite", "clues": [ "This benchmark sweeps in every stock listed on one heavily tech-weighted U.S. exchange, financial and non-financial alike.", "It's the all-inclusive, broad measure of that entire exchange — not the trimmed list of its 100 biggest names." ], "uid": "1o56cwa11bosjk" }, { "id": "concept-rw-investing-201-nasdaq-100", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "indexes", "benchmark" ], "name": "Nasdaq 100", "clues": [ "This benchmark holds only the largest non-financial companies listed on one heavily tech-weighted U.S. exchange.", "It's the index that the popular QQQ ETF is built to track." ], "uid": "1ceo9hh1jtfllp" }, { "id": "concept-rw-investing-201-russell-2000", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "indexes", "benchmark" ], "name": "Russell 2000", "clues": [ "Among the major indexes, this is the yardstick investors reach for to measure small companies.", "It's THE standard small-cap benchmark, tracking a couple thousand of the smallest U.S. firms." ], "uid": "qb4ckr12g0nkl" }, { "id": "concept-rw-investing-201-defi", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "fintech", "blockchain" ], "name": "DeFi", "clues": [ "An emerging system that uses blockchain-based smart contracts to recreate lending, borrowing, trading, and yield generation without traditional intermediaries like banks.", "It runs transparently on public blockchains through protocols such as Aave, Uniswap, and Compound — open to anyone with an internet connection." ], "uid": "jzr6j11wtst2z" }, { "id": "concept-rw-investing-201-tokenization", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "fintech", "blockchain" ], "name": "Tokenization", "clues": [ "The practice of representing real-world assets — real estate, bonds, private equity, commodities — as tradable digital units recorded on a blockchain.", "BlackRock, JPMorgan, and Goldman Sachs have all launched initiatives around it, promising fractional ownership, 24/7 liquidity, and programmable compliance." ], "uid": "al7z4319xayt7" }, { "id": "concept-rw-investing-201-central-bank-digital-currencies", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "fintech", "money" ], "name": "Central Bank Digital Currencies", "clues": [ "Programmable, traceable equivalents of cash, issued directly by a nation's monetary authority rather than a private company.", "More than 130 countries are exploring them; China's version is already operational, and the U.S. Fed rolled out its FedNow instant-payments system alongside the trend." ], "uid": "13exu8117u7qqh" }, { "id": "concept-rw-investing-201-esg-investing", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "fintech", "strategy" ], "name": "ESG investing", "clues": [ "An investing approach that weighs a company's ethics, sustainability, and management quality alongside its financial performance.", "Once a niche movement, it now guides trillions in assets under formal mandates — though critics debate whether it consistently generates alpha." ], "uid": "1k1a3urymhoh9" }, { "id": "concept-rw-investing-201-401-k", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "accounts", "taxes" ], "name": "401(k)", "clues": [ "An employer-sponsored retirement account funded with pre-tax dollars.", "Contributions lower your taxable income today, and withdrawals are taxed later, in retirement." ], "uid": "u4oycu1s3oqry" }, { "id": "concept-rw-investing-201-traditional-ira", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "accounts", "taxes" ], "name": "Traditional IRA", "clues": [ "A pre-tax retirement account you open on your own, not through an employer.", "It's the individual equivalent of the employer-sponsored plan — the same up-front deduction, with taxes deferred until you withdraw." ], "uid": "14hz5298b4wp" }, { "id": "concept-rw-investing-201-roth-ira", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "accounts", "taxes" ], "name": "Roth IRA", "clues": [ "This retirement account flips the usual tax timing — you fund it with post-tax dollars instead of pre-tax.", "In return, all growth and qualified withdrawals come out completely tax-free, making it for most investors the most powerful long-term wealth vehicle." ], "uid": "15tumcy1ct9c3k" }, { "id": "concept-rw-investing-201-hsa", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "accounts", "taxes" ], "name": "HSA", "clues": [ "This account offers a rare triple tax advantage: pre-tax contributions, tax-free growth, and tax-free withdrawals for qualifying medical expenses.", "Tied to covering medical costs, it can quietly double as a stealth retirement account." ], "uid": "1joc2ut5dnk3n" }, { "id": "concept-rw-investing-201-rule-of-72", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "recall", "compounding" ], "name": "Rule of 72", "clues": [ "A quick mental shortcut for grasping the power of compounding.", "Divide one fixed constant by your annual percentage return, and the result is the number of years it takes to double your money." ], "uid": "16xdhah1ppipv9" }, { "id": "concept-rw-investing-201-free-cash-flow", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "recall", "valuation" ], "name": "Free Cash Flow", "clues": [ "Widely called the single most important number in valuation.", "It's what a business truly keeps after sustaining itself — the money it generates from operations, minus capital expenditures." ], "uid": "16v178r19ohk43" }, { "id": "concept-rw-investing-201-dollar-cost-averaging", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "recall", "strategy" ], "name": "Dollar-Cost Averaging", "clues": [ "The simplest behavioral safeguard there is — a discipline that stops you from trying to time the market.", "You invest a fixed amount at regular intervals, regardless of price." ], "uid": "z2wrdp1pl6yh3" }, { "id": "concept-rw-investing-201-philadelphia-stock-exchange", "shape": "concept", "conceptKind": "place", "tags": [ "place", "exchanges", "market-history" ], "name": "Philadelphia Stock Exchange", "clues": [ "Chartered in 1790, this was the country's first organized securities market.", "Originally called the Board of Brokers, it financed the westward expansion of the young republic through early government bonds.", "Predating the Buttonwood Agreement by two years, it beat the New York institution for the title of the nation's first — a reliable trivia upset." ], "uid": "nkd8im16m91vc" }, { "id": "concept-rw-investing-201-new-york-stock-exchange", "shape": "concept", "conceptKind": "place", "tags": [ "place", "exchanges", "market-history" ], "name": "New York Stock Exchange", "clues": [ "By market capitalization, it has long reigned as the world's largest securities marketplace.", "It grew out of the 1792 Buttonwood Agreement, formalizing in 1817 as a board that rented rooms at 40 Wall Street.", "Formalized indoors and shortened to its familiar name in 1863, it is the older, larger rival of the Nasdaq." ], "uid": "1gpwnwmzwz0f0" }, { "id": "concept-rw-investing-201-nasdaq", "shape": "concept", "conceptKind": "place", "tags": [ "place", "exchanges", "market-history" ], "name": "Nasdaq", "clues": [ "Launched in 1971, this was the world's first fully electronic stock market.", "Its founders were an industry body of broker-dealers; it began by broadcasting real-time bid and ask prices from market makers nationwide instead of executing trades.", "Home to Apple, Microsoft, and Nvidia, this second-largest U.S. exchange saw its Composite index shed nearly 80% after peaking in March 2000." ], "uid": "tsa2vl1r330jh" }, { "id": "concept-rw-investing-201-wall-street", "shape": "concept", "conceptKind": "place", "tags": [ "place", "market-history" ], "name": "Wall Street", "clues": [ "This lower-Manhattan corridor became a metonym for American finance long before any exchange opened on it.", "Its name traces to a 12-foot wooden fortification Dutch colonists erected across southern Manhattan in 1653 to defend New Amsterdam.", "Though that Dutch barrier was demolished by 1699, the roadway beside it kept the name and became shorthand for American finance." ], "uid": "wury1q1sj99fw" }, { "id": "concept-rw-investing-201-finra", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "regulators" ], "name": "FINRA", "clues": [ "This private, not-for-profit body polices broker-dealers, funded by member firms rather than taxpayers.", "It monitors billions of daily market events for manipulation and arbitrates disputes between investors and firms.", "It writes the rules for member firms and administers the qualification exams every stockbroker must pass." ], "uid": "3y5gtk1cktoz0" }, { "id": "concept-rw-investing-201-cftc", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "regulators" ], "name": "CFTC", "clues": [ "Among the alphabet of regulators, this one's exclusive beat is the derivatives markets.", "It oversees swaps and has increasingly moved to regulate crypto.", "Its domain is contracts on raw goods and other derivatives — a separate jurisdiction from the watchdogs who police ordinary stock trades." ], "uid": "1fzjjn51k7iynj" }, { "id": "concept-rw-investing-201-fdic", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "regulators" ], "name": "FDIC", "clues": [ "This agency is the reason a bank failure doesn't wipe out ordinary savers.", "It oversees bank safety and stands behind the cash held in ordinary checking and savings accounts.", "It guarantees each saver up to $250,000 per bank if the institution collapses." ], "uid": "lojmch8blco3" }, { "id": "concept-rw-investing-201-federal-reserve", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "regulators" ], "name": "Federal Reserve", "clues": [ "Its decisions ripple through every asset class, from stocks to bonds.", "As the nation's central bank, it controls monetary policy and interest rates.", "During the 2020 crash, it slashed rates to near zero to keep the financial system stable." ], "uid": "1iky5gt1a3bx2b" }, { "id": "concept-rw-investing-201-fincen", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "regulators" ], "name": "FinCEN", "clues": [ "Among the regulators, this bureau tracks the money flows that fund illegal activity.", "Its mission is combating money laundering and other illicit funding.", "It specializes in tracing dirty-money laundering, distinct from the consumer- or bank-safety regulators." ], "uid": "1nhjnziptnp8u" }, { "id": "concept-rw-investing-201-u-s-treasury-bonds", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "bonds", "fixed-income" ], "name": "U.S. Treasury Bonds", "clues": [ "On the fixed-income risk ladder, this instrument sits at the very bottom for risk.", "Backed by the full faith and credit of the federal government, it is considered nearly risk-free.", "In a crisis, investors stage a flight to safety into gold and this government debt." ], "uid": "1ickcb31xahbaz" }, { "id": "concept-rw-investing-201-corporate-bonds", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "bonds", "fixed-income" ], "name": "Corporate Bonds", "clues": [ "This debt is a loan you make to a business rather than to a government.", "Its risk is graded by ratings agencies like Moody's and S&P.", "Sitting between government-backed and below-investment-grade debt, its safety hinges on the issuing firm's credit rating." ], "uid": "p93wmu1bdegfc" }, { "id": "concept-rw-investing-201-municipal-bonds", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "bonds", "fixed-income" ], "name": "Municipal Bonds", "clues": [ "This debt is issued by local governments, not by companies or the federal treasury.", "Cities and states issue it to finance their public needs.", "Its interest is often tax-advantaged, making it a favorite of investors in higher tax brackets." ], "uid": "vomdr2vz0nui" }, { "id": "concept-rw-investing-201-junk-bonds", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "bonds", "fixed-income" ], "name": "Junk Bonds", "clues": [ "This category sits at the very top of the fixed-income risk ladder.", "It carries below-investment-grade ratings from the agencies.", "It pays a higher return precisely to compensate investors for a greater chance of default — hence its unflattering nickname." ], "uid": "1yb5wnlsurp6h" }, { "id": "concept-rw-investing-201-mr-market", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "value-investing" ], "name": "Mr. Market", "clues": [ "Benjamin Graham personified the trading world as an irrational partner rather than an oracle.", "This imaginary business partner shows up each day offering to buy or sell — sometimes euphorically high, sometimes despairingly low.", "Graham taught the wise investor to treat this fictional figure's moods as opportunities to exploit, not verdicts to obey." ], "uid": "pbnmn6cljwcq" }, { "id": "concept-rw-investing-201-intrinsic-value", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "value-investing" ], "name": "Intrinsic Value", "clues": [ "One of Graham's three pillars, this is what a company is genuinely worth.", "It exists independently of whatever price the market is charging on a given day.", "Estimating this figure and then buying well below it is precisely what creates a margin of safety." ], "uid": "12s82pb1a75p7p" }, { "id": "concept-rw-investing-201-roic", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "value-investing" ], "name": "ROIC", "clues": [ "This modern metric adds a quality lens to old-school value investing.", "Popularized by investors like Tom Nash, it gauges how efficiently a company converts money into profit.", "A reading above 10% is acceptable and above 15% preferable; companies that sustain a high one almost always possess a durable moat." ], "uid": "vhbr924pkjg4" }, { "id": "concept-rw-investing-201-income-statement", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "financial-statements" ], "name": "Income Statement", "clues": [ "This document reveals how much a company earned and spent over a period, reading top to bottom.", "It begins with the top line of total revenue and works down through COGS, EBIT, and EBITDA.", "Its bottom line is net earnings, which divided by shares outstanding yields EPS." ], "uid": "9bzrn71gkxwyh" }, { "id": "concept-rw-investing-201-balance-sheet", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "financial-statements" ], "name": "Balance Sheet", "clues": [ "This document is a snapshot of a company's financial position at a single instant.", "It obeys one inviolable equation: Assets = Liabilities + Shareholders' Equity.", "Its resilience ratios include the current ratio and debt-to-equity, and its footnotes can hide dilutive stock options and deferred taxes." ], "uid": "163mpt81wl1rw4" }, { "id": "concept-rw-investing-201-cash-flow-statement", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "financial-statements" ], "name": "Cash Flow Statement", "clues": [ "Because accounting profit can be massaged, this document is often the most reliable health indicator.", "It tracks the actual money moving through a business, split into operating, investing, and financing sections.", "Its operating section minus capital expenditures yields the single most important figure in valuation — the money truly available to shareholders." ], "uid": "1fgcy3sureqs4" }, { "id": "concept-rw-investing-201-wacc-weighted-average-cost-of-capital", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "dcf", "valuation" ], "name": "WACC (Weighted Average Cost of Capital)", "clues": [ "In a discounted cash flow model, this is the variable most often used as the discount rate r.", "It blends what a company pays to fund itself through equity and debt into a single rate.", "For established U.S. companies it lands around 8-12%; raise it and the present value of future cash flows shrinks." ], "uid": "1tua2preexfxh" }, { "id": "concept-rw-investing-201-terminal-value", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "dcf", "valuation" ], "name": "Terminal Value", "clues": [ "In a DCF, this figure captures every cash flow lying beyond the explicit 5-10 year projection window.", "Because it stands in for the company's entire indefinite future, it usually makes up the majority of the model's output.", "It's computed in step three, using either the Gordon Growth method or an exit-multiple approach on the final projected year." ], "uid": "nrzwl01xcc5ty" }, { "id": "concept-rw-investing-201-gordon-growth-model", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "dcf", "terminal-value" ], "name": "Gordon Growth Model", "clues": [ "One of two standard ways to calculate a DCF's terminal value.", "It takes the final projected year's free cash flow, applies a modest perpetual rate g, and divides by (r - g).", "Its perpetual rate g is usually set near long-run GDP expansion of about 2-3%." ], "uid": "tmupub192ws5p" }, { "id": "concept-rw-investing-201-exit-multiple-method", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "dcf", "terminal-value" ], "name": "Exit Multiple Method", "clues": [ "The alternative to a perpetual-growth formula for pinning down a DCF's terminal value.", "It grounds the terminal estimate in what comparable companies actually sell for.", "It takes the final year's EBITDA and applies an appropriate industry EV/EBITDA figure." ], "uid": "11wk3wg1ok5yyw" }, { "id": "concept-rw-investing-201-enterprise-value", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "dcf", "valuation" ], "name": "Enterprise Value", "clues": [ "In a DCF, you reach this by adding up the discounted projected cash flows and the discounted terminal figure.", "It equals market cap plus debt minus cash - the total price to acquire the whole business.", "Subtract net debt from it to reach equity worth, then divide by shares outstanding for intrinsic worth per share." ], "uid": "j3dejk11hfft8" }, { "id": "concept-rw-investing-201-p-e-ratio-price-to-earnings", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "valuation", "multiples" ], "name": "P/E Ratio (Price-to-Earnings)", "clues": [ "The single most frequently cited valuation multiple, though only meaningful in context.", "It tells you how many dollars investors pay for each dollar of a company's annual profit.", "A reading of 20 means $20 paid per $1 of yearly profit; the S&P 500 has historically averaged 15-20x." ], "uid": "vf4ntg1mrezxg" }, { "id": "concept-rw-investing-201-ev-ebitda", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "valuation", "multiples" ], "name": "EV/EBITDA", "clues": [ "The standard valuation metric in mergers and leveraged buyouts.", "It's favored over the earnings multiple when comparing firms with different capital structures.", "It puts the entire business - debt plus equity together - over operating cash generation before financing choices." ], "uid": "8mqyvc93chx2" }, { "id": "concept-rw-investing-201-p-s-ratio-price-to-sales", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "valuation", "multiples" ], "name": "P/S Ratio (Price-to-Sales)", "clues": [ "The go-to multiple when a company is pre-profitable or its profits are temporarily depressed by heavy reinvestment.", "When there are no earnings to divide by, this multiple steps in as the standard.", "It divides a company's market cap by its annual revenue." ], "uid": "hgfb1i1vhkao8" }, { "id": "concept-rw-investing-201-peg-ratio-price-earnings-to-growth", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "valuation", "multiples" ], "name": "PEG Ratio (Price/Earnings-to-Growth)", "clues": [ "A refinement that judges whether a rapidly expanding stock's premium valuation is truly justified.", "It normalizes the standard P/E multiple for a company's expansion rate, so companies of very different speeds can be compared fairly.", "Divide the P/E by the profit-expansion rate; a reading below 1.0 is often considered undervalued." ], "uid": "1qp7fak1kaed7c" }, { "id": "concept-rw-investing-201-p-b-ratio-price-to-book", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "valuation", "multiples" ], "name": "P/B Ratio (Price-to-Book)", "clues": [ "The multiple most revealing for banks and asset-heavy firms, and largely useless elsewhere.", "It shines where a company's balance-sheet worth closely tracks its earning power.", "It divides the share's market quote by the per-share net asset figure from the balance sheet." ], "uid": "zwiasffixbst" }, { "id": "concept-rw-investing-201-buy-and-hold", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "strategy", "passive" ], "name": "Buy and Hold", "clues": [ "The dullest yet most empirically supported strategy for most people.", "Instead of trying to outsmart the market, it simply aims to match it over decades while ignoring daily noise.", "Its evidence: index funds tracking the S&P 500 beat over 90% of active funds across 20-year spans, so you own quality and sit tight." ], "uid": "19uqr1cgtt1wq" }, { "id": "concept-rw-investing-201-growth-investing", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "strategy", "active" ], "name": "Growth Investing", "clues": [ "An active style that pays premium valuations in exchange for high future returns.", "It seeks companies expanding revenue and earnings at above-average rates.", "Its followers watch total addressable market, revenue expansion, and net dollar retention." ], "uid": "1tls3en1gdmq79" }, { "id": "concept-rw-investing-201-value-investing", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "strategy", "active" ], "name": "Value Investing", "clues": [ "The Graham-and-Buffett tradition of buying dollars for fifty cents.", "It targets stocks trading below their intrinsic worth.", "It increasingly screens for quality traits like high ROIC and durable moats." ], "uid": "1gukblcrfhpck" }, { "id": "concept-rw-investing-201-dividend-investing", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "strategy", "active" ], "name": "Dividend Investing", "clues": [ "An income strategy centered on companies with consistent, rising payouts.", "Its blue chips are S&P 500 firms with 25+ consecutive years of rising payouts.", "Those elite payout-raisers carry the nickname 'the Aristocrats.'" ], "uid": "v62nskg615si" }, { "id": "concept-rw-investing-201-dollar-cost-averaging-dca", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "strategy", "active" ], "name": "Dollar-Cost Averaging (DCA)", "clues": [ "A discipline as much as a strategy, it cuts across growth, value, and income approaches alike.", "It removes the psychological burden of timing the market by investing on a fixed schedule.", "You put in a fixed sum at regular intervals regardless of price, automatically buying more shares when prices fall." ], "uid": "17mhulg9d579g" }, { "id": "concept-rw-investing-201-early-cycle", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "business-cycle", "sectors" ], "name": "Early Cycle", "clues": [ "One of the four phases the economy runs through: a sharp recovery with accelerating growth and easy credit.", "When the Fed pivots to cutting rates in this recovery, growth stocks and real estate usually lead.", "Its outperformers are financials, consumer discretionary, and real estate." ], "uid": "pne2xj1okccrh" }, { "id": "concept-rw-investing-201-mid-cycle", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "business-cycle", "sectors" ], "name": "Mid Cycle", "clues": [ "One of the four phases the economy runs through, defined simply by steady, ongoing growth.", "It lacks both the sharp acceleration of the recovery phase and the rising inflation of the slowdown that follows.", "Its favored sectors are technology, industrials, and communication services." ], "uid": "10dcfce1vru3ka" }, { "id": "concept-rw-investing-201-late-cycle", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "business-cycle", "sectors" ], "name": "Late Cycle", "clues": [ "One of the four phases the economy runs through, defined by slowing growth, rising inflation, and tightening credit.", "In its typically rising-rate environment, financials gain from wider lending margins and energy often outperforms.", "Its characteristic leaders are energy, materials, and consumer staples." ], "uid": "1arnehe8lq6y4" }, { "id": "concept-rw-investing-201-recession", "shape": "concept", "conceptKind": "thing", "tags": [ "thing", "business-cycle", "sectors" ], "name": "Recession", "clues": [ "The contraction phase of the business cycle - historically the shorter half, averaging only about ten months.", "In it, defensive sectors that people buy regardless of conditions hold up best.", "Its winners are utilities, healthcare, and consumer staples." ], "uid": "ywgr4kuxx8qy" }, { "id": "ot-early-exchanges-buttonwood-year", "shape": "mcq", "tags": [ "buttonwood", "nyse", "founding" ], "prompt": { "modality": "text", "value": "In what year did twenty-four brokers sign the Buttonwood Agreement outside 68 Wall Street?" }, "options": [ { "modality": "text", "value": "1863" }, { "modality": "text", "value": "1792" }, { "modality": "text", "value": "1790" }, { "modality": "text", "value": "1817" } ], "correctIndex": 1, "explanation": "The Buttonwood Agreement was signed May 17, 1792. 1790 is Philadelphia's founding, 1817 is when the group formalized, and 1863 is when the name NYSE was adopted.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1dygwvf17smyoj" }, { "id": "ot-early-exchanges-first-listed", "shape": "mcq", "tags": [ "nyse", "first-listed" ], "prompt": { "modality": "text", "value": "Which company was the first ever listed on the New York Stock Exchange?" }, "options": [ { "modality": "text", "value": "The First Bank of the United States" }, { "modality": "text", "value": "The Bank of New York" }, { "modality": "text", "value": "Bank of America" }, { "modality": "text", "value": "The Philadelphia National Bank" } ], "correctIndex": 1, "explanation": "The Bank of New York was the first company listed on the NYSE. The others are plausible early-bank names but not the first listing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "cun78z1yn156h" }, { "id": "ot-early-exchanges-wall-name", "shape": "mcq", "tags": [ "wall-street", "origin" ], "prompt": { "modality": "text", "value": "Where does the name 'Wall Street' come from?" }, "options": [ { "modality": "text", "value": "The surname of the exchange's founding broker" }, { "modality": "text", "value": "A stone wall marking the NYSE's original property line" }, { "modality": "text", "value": "A 12-foot wooden wall Dutch settlers built in 1653" }, { "modality": "text", "value": "A wall of stock certificates posted for public viewing" } ], "correctIndex": 2, "explanation": "In 1653 Dutch colonists built a 12-foot wooden wall across lower Manhattan for defense; brokers later gathered along that corridor and the name stuck.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1uprpw6azh3aa" }, { "id": "ot-nasdaq-acronym", "shape": "mcq", "tags": [ "nasdaq", "acronym" ], "prompt": { "modality": "text", "value": "What does the acronym NASDAQ stand for?" }, "options": [ { "modality": "text", "value": "New American Stock Dealers Automated Quotations", "short": "New American Stock Dealers Automated Quotations" }, { "modality": "text", "value": "National Automated Securities Dealing and Quotation", "short": "Nat'l Automated Securities Dealing and Quotation" }, { "modality": "text", "value": "National Association of Securities Dealers Automated Quotations", "short": "Nat'l Assn of Securities Dealers Automated Quotations" }, { "modality": "text", "value": "National Association of Stock Dealers and Quoted Assets", "short": "Nat'l Assn of Stock Dealers and Quoted Assets" } ], "correctIndex": 2, "explanation": "NASDAQ stands for National Association of Securities Dealers Automated Quotations. The other options rearrange or invent words not in the real name.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "j70sgqpcgj5u" }, { "id": "ot-nasdaq-founded-year", "shape": "mcq", "tags": [ "nasdaq", "founding" ], "prompt": { "modality": "text", "value": "In what year was the Nasdaq launched as the world's first electronic stock market?" }, "options": [ { "modality": "text", "value": "1963" }, { "modality": "text", "value": "1971" }, { "modality": "text", "value": "1975" }, { "modality": "text", "value": "1998" } ], "correctIndex": 1, "explanation": "The Nasdaq launched February 8, 1971. 1975 is when it began listing venture-backed firms, and 1998 is when it added online trading.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1eozvm1ixw4ut" }, { "id": "ot-nasdaq-original-function", "shape": "mcq", "tags": [ "nasdaq", "quotes" ], "prompt": { "modality": "text", "value": "What was the Nasdaq's original function at its 1971 launch?" }, "options": [ { "modality": "text", "value": "Replace the SEC as the market's regulator", "short": "Replace the SEC as regulator" }, { "modality": "text", "value": "Broadcast real-time bid/ask quotes from market makers to dealers", "short": "Broadcast bid/ask quotes to dealers" }, { "modality": "text", "value": "Provide margin loans to retail investors", "short": "Margin loans to retail investors" }, { "modality": "text", "value": "Automatically match and execute buy and sell orders", "short": "Match and execute buy/sell orders" } ], "correctIndex": 1, "explanation": "The Nasdaq initially transmitted real-time bid/ask quotes to dealers nationwide rather than executing trades, replacing a paper-based system.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "eppkop8imodj" }, { "id": "ot-nasdaq-rank", "shape": "mcq", "tags": [ "nasdaq", "market-cap" ], "prompt": { "modality": "text", "value": "Where does the Nasdaq rank today among the world's exchanges by market capitalization?" }, "options": [ { "modality": "text", "value": "Third-largest, behind the NYSE and Tokyo", "short": "Third-largest, worldwide" }, { "modality": "text", "value": "Second-largest, behind the NYSE" }, { "modality": "text", "value": "Largest in the world" }, { "modality": "text", "value": "Fifth-largest globally" } ], "correctIndex": 1, "explanation": "The Nasdaq is the second-largest exchange by market cap, behind only the NYSE, which remains the world's largest.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1l795721nq01ea" }, { "id": "ot-dotcom-cause", "shape": "mcq", "tags": [ "dotcom", "cause" ], "prompt": { "modality": "text", "value": "What fueled the dot-com bubble that inflated the Nasdaq in the late 1990s?" }, "options": [ { "modality": "text", "value": "The Nasdaq's heavy concentration in technology and growth stocks", "short": "Nasdaq's tech & growth concentration" }, { "modality": "text", "value": "The Nasdaq's 1998 introduction of online trading", "short": "Nasdaq's 1998 online trading launch" }, { "modality": "text", "value": "Confidence in internet companies with no revenue or path to profit", "short": "Faith in profitless internet firms" }, { "modality": "text", "value": "Speculation on margin loans covering most of a stock's price", "short": "Margin-loan speculation on stocks" } ], "correctIndex": 2, "explanation": "The bubble grew from investor confidence in internet business models that had no revenue or credible path to profit. Subprime and portfolio insurance drove other crashes.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "5csdxou8hx4i" }, { "id": "ot-dotcom-survivors", "shape": "mcq", "tags": [ "dotcom", "survivors" ], "prompt": { "modality": "text", "value": "Which companies survived the dot-com crash and emerged far stronger?" }, "options": [ { "modality": "text", "value": "Pets.com and Webvan" }, { "modality": "text", "value": "Lehman Brothers and Bear Stearns" }, { "modality": "text", "value": "Enron and WorldCom" }, { "modality": "text", "value": "Amazon and Google" } ], "correctIndex": 3, "explanation": "Amazon and (eventually) Google survived the bust with durable competitive positions. Pets.com and Webvan were casualties; the others failed for unrelated reasons.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1t5ivum19392nw" }, { "id": "ot-dotcom-not-true", "shape": "mcq", "tags": [ "dotcom", "timeline" ], "prompt": { "modality": "text", "value": "Which statement about the dot-com collapse is NOT true?" }, "options": [ { "modality": "text", "value": "The Nasdaq regained its March 2000 peak within two years", "short": "The Nasdaq recovered by early 2002" }, { "modality": "text", "value": "The crash wiped out hundreds of internet companies", "short": "The crash wiped out hundreds of firms" }, { "modality": "text", "value": "The collapse dragged on into late 2002", "short": "The collapse dragged on into late 2002" }, { "modality": "text", "value": "The Nasdaq Composite peaked in March 2000", "short": "The Nasdaq Composite peaked in March 2000" } ], "correctIndex": 0, "explanation": "The Nasdaq kept falling into late 2002 and did not reclaim its March 2000 peak for many years. The other three statements match the record.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1kll1xj2k3bnr" }, { "id": "ot-crashes-black-monday-drop", "shape": "mcq", "tags": [ "black-monday", "1987" ], "prompt": { "modality": "text", "value": "How far did the Dow fall in a single session on Black Monday, October 19, 1987?" }, "options": [ { "modality": "text", "value": "34%" }, { "modality": "text", "value": "22.6%" }, { "modality": "text", "value": "12.8%" }, { "modality": "text", "value": "50%" } ], "correctIndex": 1, "explanation": "The Dow fell 22.6% on Black Monday 1987 — still the largest one-day percentage decline in U.S. history. 34% was COVID's decline and 50%+ was 2008's peak-to-trough drop.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ms5snkxh4l0" }, { "id": "ot-crashes-fastest-bear", "shape": "mcq", "tags": [ "covid", "speed" ], "prompt": { "modality": "text", "value": "Which crash holds the record as the fastest bear market ever recorded?" }, "options": [ { "modality": "text", "value": "The 2008 financial crisis", "short": "The 2008 financial crisis" }, { "modality": "text", "value": "The Crash of 1929", "short": "The Wall Street crash of 1929" }, { "modality": "text", "value": "The COVID-19 crash of 2020", "short": "The COVID-19 crash, March 2020" }, { "modality": "text", "value": "Black Monday of 1987", "short": "Black Monday, October 1987" } ], "correctIndex": 2, "explanation": "In 2020 the S&P 500 fell 34% in just 33 days — the fastest bear market ever. Black Monday was the biggest one-day drop, a different record.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "xfhedp1cjottd" }, { "id": "ot-crashes-1929-magnitude", "shape": "mcq", "tags": [ "1929", "magnitude" ], "prompt": { "modality": "text", "value": "After the 1929 crash, about how much of its value did the market lose, and how long did full recovery take?" }, "options": [ { "modality": "text", "value": "About 50%, taking 5 years to recover" }, { "modality": "text", "value": "Roughly 90%, taking 25 years to recover" }, { "modality": "text", "value": "About 34%, taking 5 months to recover" }, { "modality": "text", "value": "About 22.6%, taking 2 years to recover" } ], "correctIndex": 1, "explanation": "The 1929 market ultimately shed about 90% of its value and took 25 years to fully recover. The 34%/5-month figures describe the 2020 COVID crash.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1v6k41t1pttfw7" }, { "id": "ot-crashes-2008-drop", "shape": "mcq", "tags": [ "2008", "magnitude" ], "prompt": { "modality": "text", "value": "During the 2008 financial crisis, how far did the Dow fall from peak to trough?" }, "options": [ { "modality": "text", "value": "More than 50%" }, { "modality": "text", "value": "Nearly 90%" }, { "modality": "text", "value": "About 34%" }, { "modality": "text", "value": "About 22.6%" } ], "correctIndex": 0, "explanation": "The Dow dropped more than 50% peak to trough in 2008 after Lehman Brothers failed. 22.6% was Black Monday, 34% was COVID, and ~90% was 1929.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "18cejd04rksfi" }, { "id": "ot-sec-role-1", "shape": "mcq", "tags": [ "sec", "history" ], "prompt": { "modality": "text", "value": "On what date was the Securities and Exchange Commission established, through the Securities Exchange Act?" }, "options": [ { "modality": "text", "value": "May 27, 1933" }, { "modality": "text", "value": "November 12, 1999" }, { "modality": "text", "value": "June 6, 1934" }, { "modality": "text", "value": "October 29, 1929" } ], "correctIndex": 2, "explanation": "The SEC was established on June 6, 1934 via the Securities Exchange Act, a direct response to the 1929 crash. The Securities Act came a year earlier in 1933.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1sxya00jo5w8m" }, { "id": "ot-sec-role-2", "shape": "mcq", "tags": [ "sec", "mission" ], "prompt": { "modality": "text", "value": "Which of the following is NOT part of the SEC's three-part mission?" }, "options": [ { "modality": "text", "value": "Insure bank deposits against loss" }, { "modality": "text", "value": "Facilitate capital formation" }, { "modality": "text", "value": "Maintain fair, orderly, and efficient markets" }, { "modality": "text", "value": "Protect investors" } ], "correctIndex": 0, "explanation": "The SEC's mission is protecting investors, maintaining fair markets, and facilitating capital formation. Insuring bank deposits is the FDIC's job, not the SEC's.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1v1t4q7r6afqn" }, { "id": "ot-sec-role-3", "shape": "mcq", "tags": [ "securities-act", "disclosure" ], "prompt": { "modality": "text", "value": "What did the Securities Act of 1933 establish as a bedrock principle?" }, "options": [ { "modality": "text", "value": "Bank deposits are insured up to a set limit", "short": "Bank deposits insured to a set limit" }, { "modality": "text", "value": "Investment and commercial banking must be separated", "short": "Separate investment & commercial banking" }, { "modality": "text", "value": "Brokers must pass qualification exams", "short": "Brokers must pass qualifying exams" }, { "modality": "text", "value": "Investors must receive truthful, material information before they buy", "short": "Truthful disclosure before you buy" } ], "correctIndex": 3, "explanation": "The Securities Act of 1933 prohibited deceit in securities sales, establishing that investors must get truthful, material information before buying. Separating banking was Glass-Steagall.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "an51blj4swdv" }, { "id": "ot-sec-role-4", "shape": "mcq", "tags": [ "history", "1929-crash" ], "prompt": { "modality": "text", "value": "What event prompted the New Deal securities laws, after banks were found to have misled investors?" }, "options": [ { "modality": "text", "value": "The 1929 stock market crash" }, { "modality": "text", "value": "The 2008 financial crisis" }, { "modality": "text", "value": "The repeal of Glass-Steagall" }, { "modality": "text", "value": "The founding of FINRA" } ], "correctIndex": 0, "explanation": "The SEC and the 1933-34 laws were a direct response to the 1929 crash and revelations that major banks knowingly misled investors about securities' value.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "9ypeih16jhhsz" }, { "id": "ot-regulators-1", "shape": "mcq", "tags": [ "cftc", "derivatives" ], "prompt": { "modality": "text", "value": "Which regulator governs derivatives markets — futures, swaps, and increasingly crypto?" }, "options": [ { "modality": "text", "value": "FinCEN" }, { "modality": "text", "value": "OCC" }, { "modality": "text", "value": "CFTC" }, { "modality": "text", "value": "The Federal Reserve" } ], "correctIndex": 2, "explanation": "The CFTC (Commodity Futures Trading Commission) regulates derivatives: futures, swaps, and increasingly crypto. The SEC covers securities; the OCC covers national banks.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "14nxqsybfl9pk" }, { "id": "ot-regulators-2", "shape": "mcq", "tags": [ "fed", "monetary-policy" ], "prompt": { "modality": "text", "value": "Which agency is the central bank, controlling monetary policy and interest rates?" }, "options": [ { "modality": "text", "value": "The Federal Reserve" }, { "modality": "text", "value": "The CFPB" }, { "modality": "text", "value": "The FDIC" }, { "modality": "text", "value": "The OCC" } ], "correctIndex": 0, "explanation": "The Federal Reserve — 'the Fed' — is the central bank controlling monetary policy, interest rates, and financial stability. The FDIC insures deposits; the CFPB protects consumers.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ump3e86q811o" }, { "id": "ot-regulators-3", "shape": "mcq", "tags": [ "fincen", "aml" ], "prompt": { "modality": "text", "value": "Which regulator combats money laundering and illicit financial activity?" }, "options": [ { "modality": "text", "value": "OCC" }, { "modality": "text", "value": "FinCEN" }, { "modality": "text", "value": "CFPB" }, { "modality": "text", "value": "CFTC" } ], "correctIndex": 1, "explanation": "FinCEN (Financial Crimes Enforcement Network) tracks financial flows to combat money laundering. The CFPB handles consumer protection; the OCC regulates national banks.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "fjxzgm1lj1buy" }, { "id": "ot-regulators-4", "shape": "mcq", "tags": [ "occ", "banks" ], "prompt": { "modality": "text", "value": "The Office of the Comptroller of the Currency (OCC) is responsible for which domain?" }, "options": [ { "modality": "text", "value": "Regulating national banks and federal savings associations", "short": "National banks and federal thrifts" }, { "modality": "text", "value": "Enforcing consumer financial protection laws", "short": "Consumer financial protection laws" }, { "modality": "text", "value": "Regulating futures and swaps", "short": "Futures and swaps markets" }, { "modality": "text", "value": "Insuring bank deposits up to $250,000", "short": "Insurance of bank deposits" } ], "correctIndex": 0, "explanation": "The OCC regulates national banks and federal savings associations. Deposit insurance is the FDIC; consumer protection is the CFPB; futures are the CFTC.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ecya2q13od6yy" }, { "id": "ot-regulators-5", "shape": "mcq", "tags": [ "cfpb", "consumers" ], "prompt": { "modality": "text", "value": "Which agency focuses on how ordinary people are treated by lenders and card issuers?" }, "options": [ { "modality": "text", "value": "CFPB" }, { "modality": "text", "value": "Federal Reserve" }, { "modality": "text", "value": "CFTC" }, { "modality": "text", "value": "FinCEN" } ], "correctIndex": 0, "explanation": "The CFPB (Consumer Financial Protection Bureau) enforces consumer financial protection laws, focusing on lenders and card issuers. FinCEN targets money laundering.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "iy2wzk5459q4" }, { "id": "ot-depins-1", "shape": "mcq", "tags": [ "fdic", "deposit-limit" ], "prompt": { "modality": "text", "value": "Up to what dollar amount does the FDIC insure a saver's money if their bank fails?" }, "options": [ { "modality": "text", "value": "$100,000" }, { "modality": "text", "value": "$1,000,000" }, { "modality": "text", "value": "$250,000" }, { "modality": "text", "value": "$500,000" } ], "correctIndex": 2, "explanation": "The FDIC insures deposits up to $250,000 (per depositor, per bank) — the reason a bank failure doesn't wipe out ordinary savers.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "15k38h31uxucv" }, { "id": "ot-depins-2", "shape": "mcq", "tags": [ "sec", "finra" ], "prompt": { "modality": "text", "value": "What is the key funding distinction between the SEC and FINRA?" }, "options": [ { "modality": "text", "value": "Both are funded by member fees", "short": "Both funded by member fees" }, { "modality": "text", "value": "The SEC is funded by taxpayers; FINRA is funded by member fees", "short": "SEC by taxpayers; FINRA by member fees" }, { "modality": "text", "value": "The SEC is funded by member fees; FINRA is funded by taxpayers", "short": "SEC by member fees; FINRA by taxpayers" }, { "modality": "text", "value": "Both are funded by taxpayers", "short": "Both funded by taxpayers" } ], "correctIndex": 1, "explanation": "The SEC is a government agency funded by taxpayers; FINRA is a private self-regulatory body funded by member fees.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1m2smae1amkyl0" }, { "id": "ot-depins-3", "shape": "mcq", "tags": [ "finra", "sro" ], "prompt": { "modality": "text", "value": "FINRA is best described as which kind of organization?" }, "options": [ { "modality": "text", "value": "A branch of the Federal Reserve", "short": "A Federal Reserve division" }, { "modality": "text", "value": "A private, not-for-profit self-regulatory organization", "short": "A private self-regulatory body" }, { "modality": "text", "value": "A federal government agency", "short": "A federal government agency" }, { "modality": "text", "value": "A publicly traded for-profit exchange", "short": "A publicly traded stock exchange" } ], "correctIndex": 1, "explanation": "FINRA is a private, not-for-profit self-regulatory organization (SRO) overseeing broker-dealers under SEC supervision — not a government agency.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "o4u4oyrxwtji" }, { "id": "ot-depins-4", "shape": "mcq", "tags": [ "fdic", "coverage" ], "prompt": { "modality": "text", "value": "The FDIC's $250,000 insurance limit applies on what basis?" }, "options": [ { "modality": "text", "value": "Per depositor, per bank" }, { "modality": "text", "value": "Per household, across all banks" }, { "modality": "text", "value": "Per account, regardless of bank" }, { "modality": "text", "value": "Per transaction, each time" } ], "correctIndex": 0, "explanation": "The FDIC insures up to $250,000 per depositor, per bank — so the same person can be covered separately at different banks.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "4p8t0zf7abtl" }, { "id": "ot-equity-basics-1", "shape": "mcq", "tags": [ "stocks", "equities", "ownership" ], "prompt": { "modality": "text", "value": "When you buy a share of stock, what have you actually purchased?" }, "options": [ { "modality": "text", "value": "A loan to the company repaid at maturity" }, { "modality": "text", "value": "Insurance against the company's default" }, { "modality": "text", "value": "A fixed claim on the company's interest payments" }, { "modality": "text", "value": "An ownership stake in the company" } ], "correctIndex": 3, "explanation": "A stock is an ownership stake — a fractional claim on a company's assets, earnings, and future. A loan repaid at maturity with interest describes a bond, not a stock.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "if9m4kv14qdu" }, { "id": "ot-equity-basics-2", "shape": "mcq", "tags": [ "sp500", "returns" ], "prompt": { "modality": "text", "value": "Roughly what average annual return has the S&P 500 delivered since 1957?" }, "options": [ { "modality": "text", "value": "4.5%" }, { "modality": "text", "value": "7.0%" }, { "modality": "text", "value": "10.33%" }, { "modality": "text", "value": "21%" } ], "correctIndex": 2, "explanation": "The guide cites the S&P 500 averaging about 10.33% annually since 1957, making stocks the highest-returning major asset class over long horizons.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vim5hu18qblb6" }, { "id": "ot-equity-basics-3", "shape": "mcq", "tags": [ "capital-appreciation", "stocks", "returns" ], "prompt": { "modality": "text", "value": "When a stock's price rises and you sell your shares for a profit, that gain is called:" }, "options": [ { "modality": "text", "value": "Capital appreciation", "short": "Capital appreciation" }, { "modality": "text", "value": "A coupon", "short": "Bond coupon payment" }, { "modality": "text", "value": "Principal repayment", "short": "Principal repayment" }, { "modality": "text", "value": "A dividend", "short": "Cash dividend paid" } ], "correctIndex": 0, "explanation": "Capital appreciation is one of the two ways stocks pay: the price rises and you sell for a profit. A coupon is bond interest, a dividend is a distribution of earnings, and principal repayment is a bond feature.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1q17l7h11i4on" }, { "id": "ot-equity-basics-4", "shape": "mcq", "tags": [ "dividends", "stocks" ], "prompt": { "modality": "text", "value": "A company distributing a portion of its earnings to shareholders on a regular schedule is paying a:" }, "options": [ { "modality": "text", "value": "Dividend" }, { "modality": "text", "value": "Coupon" }, { "modality": "text", "value": "Interest" }, { "modality": "text", "value": "Principal repayment" } ], "correctIndex": 0, "explanation": "Dividends are scheduled distributions of earnings to shareholders. A coupon is bond interest; a capital gain comes from selling at a higher price; principal repayment is a bond feature.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1l5oeh93vpp8d" }, { "id": "ot-equity-basics-5", "shape": "mcq", "tags": [ "ipo", "stocks", "exchanges" ], "prompt": { "modality": "text", "value": "How is a company's stock first made available to public investors?" }, "options": [ { "modality": "text", "value": "By direct issuance from the Treasury", "short": "By direct issue from Treasury" }, { "modality": "text", "value": "Through a coupon auction at maturity", "short": "Through a coupon auction later" }, { "modality": "text", "value": "Only via private peer-to-peer transfer", "short": "Only by private peer transfer" }, { "modality": "text", "value": "Through an IPO, then traded on exchanges", "short": "Via IPO then exchanges" } ], "correctIndex": 3, "explanation": "Stocks are issued through an IPO (initial public offering) and then trade on exchanges. Treasury issuance and coupon auctions describe bonds.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "v1r7c13qdr1i" }, { "id": "ot-stock-types-1", "shape": "mcq", "tags": [ "growth-stocks", "stock-types" ], "prompt": { "modality": "text", "value": "A company like Nvidia that reinvests earnings aggressively and is expected to grow faster than average is a classic example of a:" }, "options": [ { "modality": "text", "value": "Value stock" }, { "modality": "text", "value": "Defensive stock" }, { "modality": "text", "value": "Growth stock" }, { "modality": "text", "value": "Cyclical stock" } ], "correctIndex": 2, "explanation": "Growth stocks reinvest earnings and are expected to grow faster than average (e.g., Nvidia). Value stocks trade below intrinsic worth; cyclical stocks track the economy; defensive stocks stay stable through the cycle.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "53sfh8s717s0" }, { "id": "ot-stock-types-2", "shape": "mcq", "tags": [ "value-stocks", "stock-types" ], "prompt": { "modality": "text", "value": "A stock trading below its estimated intrinsic worth — classic Graham and Buffett territory — is called a:" }, "options": [ { "modality": "text", "value": "Growth stock" }, { "modality": "text", "value": "Value stock" }, { "modality": "text", "value": "Cyclical stock" }, { "modality": "text", "value": "Defensive stock" } ], "correctIndex": 1, "explanation": "Value stocks trade below their estimated intrinsic value, the domain of Graham and Buffett. Growth stocks are priced for fast future growth; cyclical and defensive describe economic sensitivity, not underpricing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "12c2fjdlz45jv" }, { "id": "ot-stock-types-3", "shape": "mcq", "tags": [ "defensive-stocks", "stock-types" ], "prompt": { "modality": "text", "value": "Utilities, healthcare, and consumer staples that stay stable regardless of the economic cycle are examples of which stock type?" }, "options": [ { "modality": "text", "value": "Cyclical stocks" }, { "modality": "text", "value": "Value stocks" }, { "modality": "text", "value": "Growth stocks" }, { "modality": "text", "value": "Defensive stocks" } ], "correctIndex": 3, "explanation": "Defensive stocks (utilities, healthcare, staples) stay stable through booms and busts. Cyclical stocks like automakers and airlines rise and fall with the economy.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1lwho4a1wemlay" }, { "id": "ot-stock-types-4", "shape": "mcq", "tags": [ "stock-types", "cyclical", "defensive" ], "prompt": { "modality": "text", "value": "Which pairing of stock type to example is INCORRECT?" }, "options": [ { "modality": "text", "value": "Defensive stock — utilities and consumer staples" }, { "modality": "text", "value": "Cyclical stock — automakers and airlines" }, { "modality": "text", "value": "Defensive stock — automakers and airlines" }, { "modality": "text", "value": "Growth stock — Nvidia" } ], "correctIndex": 2, "explanation": "Automakers and airlines are cyclical, not defensive — their fortunes track the economy. Defensive stocks are utilities, healthcare, and staples that stay stable.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "67mc9w2wmpui" }, { "id": "ot-bonds-1", "shape": "mcq", "tags": [ "bonds", "fixed-income" ], "prompt": { "modality": "text", "value": "What does an investor actually do when they buy a bond?" }, "options": [ { "modality": "text", "value": "Purchase a physical commodity like gold" }, { "modality": "text", "value": "Make a loan to a corporation or government" }, { "modality": "text", "value": "Acquire a share of future dividend payments" }, { "modality": "text", "value": "Buy an ownership stake in a company" } ], "correctIndex": 1, "explanation": "A bond is a loan to a corporation or government; the issuer pays a coupon and returns principal at maturity. Ownership stakes and dividends describe stocks.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1j1asgjmr5b53" }, { "id": "ot-bonds-2", "shape": "mcq", "tags": [ "coupon", "bonds" ], "prompt": { "modality": "text", "value": "On a bond, the fixed interest rate the issuer pays the holder over the bond's life is called the:" }, "options": [ { "modality": "text", "value": "Coupon" }, { "modality": "text", "value": "Maturity" }, { "modality": "text", "value": "Principal" }, { "modality": "text", "value": "Dividend" } ], "correctIndex": 0, "explanation": "The coupon is the bond's fixed interest rate. Principal is the amount returned at maturity, and maturity is the date it is returned — not the interest rate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "z7rhgmkfpsuo" }, { "id": "ot-bonds-3", "shape": "mcq", "tags": [ "treasury", "bonds" ], "prompt": { "modality": "text", "value": "Which type of bond is described as nearly risk-free, backed by the full faith and credit of the U.S. government?" }, "options": [ { "modality": "text", "value": "U.S. Treasury bonds" }, { "modality": "text", "value": "Corporate bonds" }, { "modality": "text", "value": "Municipal bonds" }, { "modality": "text", "value": "Junk (high-yield) bonds" } ], "correctIndex": 0, "explanation": "Treasury bonds are backed by the full faith and credit of the U.S. government and are considered nearly risk-free — the safest rung of the bond risk ladder.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1u53krl19efz0h" }, { "id": "ot-bonds-4", "shape": "mcq", "tags": [ "junk-bonds", "high-yield" ], "prompt": { "modality": "text", "value": "Which bonds carry below-investment-grade ratings and pay more to compensate for higher default risk?" }, "options": [ { "modality": "text", "value": "Junk (high-yield) bonds" }, { "modality": "text", "value": "Municipal bonds" }, { "modality": "text", "value": "U.S. Treasury bonds" }, { "modality": "text", "value": "Investment-grade corporate bonds" } ], "correctIndex": 0, "explanation": "Junk (high-yield) bonds have below-investment-grade ratings and pay higher yields to offset higher default risk. Treasuries and munis sit lower on the risk ladder.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "15fbnfq1h5zqk2" }, { "id": "ot-bonds-5", "shape": "mcq", "tags": [ "municipal-bonds", "bonds" ], "prompt": { "modality": "text", "value": "Bonds issued by cities and states, often carrying tax advantages, are known as:" }, "options": [ { "modality": "text", "value": "Municipal bonds" }, { "modality": "text", "value": "Junk (high-yield) bonds" }, { "modality": "text", "value": "Investment-grade corporate bonds" }, { "modality": "text", "value": "U.S. Treasury bonds" } ], "correctIndex": 0, "explanation": "Municipal bonds are issued by cities and states and are often tax-advantaged. Treasuries are federal, junk bonds are below-investment-grade, and corporate bonds are issued by companies.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "yuwnqla4s0u5" }, { "id": "ot-crypto-1", "shape": "mcq", "tags": [ "blockchain", "crypto" ], "prompt": { "modality": "text", "value": "What is a blockchain?" }, "options": [ { "modality": "text", "value": "A decentralized public ledger maintained by a global network of computers", "short": "A public ledger across many global nodes" }, { "modality": "text", "value": "A private database controlled by a single central bank", "short": "A central bank's private database" }, { "modality": "text", "value": "A government agency that insures crypto deposits", "short": "A government insurer of crypto deposits" }, { "modality": "text", "value": "A physical vault storing gold reserves", "short": "A physical vault of gold bars" } ], "correctIndex": 0, "explanation": "A blockchain is a decentralized, public ledger maintained by a global network of computers, enabling peer-to-peer transfer of value without a central intermediary.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "6gkb71enmkkp" }, { "id": "ot-crypto-2", "shape": "mcq", "tags": [ "bitcoin", "crypto" ], "prompt": { "modality": "text", "value": "Bitcoin, the first widely adopted cryptocurrency, was launched in what year and has what supply cap?" }, "options": [ { "modality": "text", "value": "Launched in 2015, capped at 100 million coins" }, { "modality": "text", "value": "Launched in 2009, capped at 21 million coins" }, { "modality": "text", "value": "Launched in 2009, with unlimited supply" }, { "modality": "text", "value": "Launched in 2022, capped at 21 million coins" } ], "correctIndex": 1, "explanation": "The Bitcoin whitepaper appeared in October 2008, but the network itself launched on 3 January 2009 with the genesis block. Its supply is capped at 21 million coins — a hard scarcity that distinguishes it from government-issued currency.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1q9bxpyysfigg" }, { "id": "ot-crypto-3", "shape": "mcq", "tags": [ "ethereum", "smart-contracts" ], "prompt": { "modality": "text", "value": "Which cryptocurrency introduced smart contracts — self-executing code that powers DeFi and NFTs?" }, "options": [ { "modality": "text", "value": "A stablecoin" }, { "modality": "text", "value": "Bitcoin" }, { "modality": "text", "value": "Ethereum" }, { "modality": "text", "value": "Litecoin" } ], "correctIndex": 2, "explanation": "Ethereum, the second-largest crypto by market cap, introduced smart contracts powering DeFi and NFTs. Bitcoin focused on peer-to-peer value transfer, not smart contracts.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "3bd4hv75nk05" }, { "id": "ot-crypto-4", "shape": "mcq", "tags": [ "ethereum", "the-merge", "proof-of-stake" ], "prompt": { "modality": "text", "value": "After 'The Merge' in 2022, Ethereum switched to which consensus mechanism?" }, "options": [ { "modality": "text", "value": "Proof-of-Authority" }, { "modality": "text", "value": "Proof-of-Stake" }, { "modality": "text", "value": "Proof-of-History" }, { "modality": "text", "value": "Proof-of-Work" } ], "correctIndex": 1, "explanation": "After 'The Merge' in 2022, Ethereum switched from Proof-of-Work to a Proof-of-Stake consensus mechanism, validating via staked coins rather than mining.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "nal1d0700twc" }, { "id": "ot-crypto-5", "shape": "mcq", "tags": [ "hodling", "crypto" ], "prompt": { "modality": "text", "value": "In crypto slang, buying and holding through volatility for long-term gains rather than selling is called:" }, "options": [ { "modality": "text", "value": "Staking" }, { "modality": "text", "value": "Shorting" }, { "modality": "text", "value": "Day-trading" }, { "modality": "text", "value": "HODLing" } ], "correctIndex": 3, "explanation": "HODLing means buying and holding crypto through volatility for long-term gains. Staking locks coins to support a network; shorting bets on price drops; day-trading is frequent short-term buying and selling.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "yxj3101pgzq06" }, { "id": "ot-reit-hedge-1", "shape": "mcq", "tags": [ "reit", "real-estate" ], "prompt": { "modality": "text", "value": "What is a REIT?" }, "options": [ { "modality": "text", "value": "A government bond backed by property taxes", "short": "Government bond backed by property taxes" }, { "modality": "text", "value": "A publicly traded company that owns income-producing real estate", "short": "Firm owning income-producing property" }, { "modality": "text", "value": "A physical commodity like gold or copper", "short": "Physical commodity like gold or copper" }, { "modality": "text", "value": "A cryptocurrency pegged to real-estate prices", "short": "Crypto pegged to real-estate prices" } ], "correctIndex": 1, "explanation": "A REIT (Real Estate Investment Trust) is a publicly traded company that owns income-producing real estate and must distribute at least 90% of taxable income as dividends.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "h6lkj9ew73cp" }, { "id": "ot-reit-hedge-2", "shape": "mcq", "tags": [ "gold", "inflation-hedge" ], "prompt": { "modality": "text", "value": "Why is gold commonly described as an inflation hedge?" }, "options": [ { "modality": "text", "value": "When paper currency loses purchasing power, gold tends to hold or appreciate", "short": "Holds value as currency weakens" }, { "modality": "text", "value": "It pays a fixed coupon that rises with inflation", "short": "Pays an inflation-linked coupon" }, { "modality": "text", "value": "It is legally required to distribute 90% of income", "short": "Must distribute 90% of income" }, { "modality": "text", "value": "It is insured by the government against price drops", "short": "Government-insured against drops" } ], "correctIndex": 0, "explanation": "Gold serves as a store of value and inflation hedge: as paper currency loses purchasing power, gold tends to hold or rise. Coupons and 90% payouts describe bonds and REITs.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "6o6kdbnp2zqb" }, { "id": "ot-reit-hedge-3", "shape": "mcq", "tags": [ "flight-to-safety", "gold", "treasuries" ], "prompt": { "modality": "text", "value": "During geopolitical uncertainty or currency crises, investors stage a 'flight to safety' into which assets?" }, "options": [ { "modality": "text", "value": "Investment-grade corporate bonds and municipal bonds" }, { "modality": "text", "value": "Consumer-staples stocks and money-market funds" }, { "modality": "text", "value": "Gold and U.S. Treasuries" }, { "modality": "text", "value": "Utilities and dividend-paying blue chips" } ], "correctIndex": 2, "explanation": "In crises investors stage a 'flight to safety' into gold and U.S. Treasuries — the classic safe havens — not into higher-risk assets like junk bonds or crypto.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1jr5za5qj8a5f" }, { "id": "ot-reit-hedge-4", "shape": "mcq", "tags": [ "bitcoin", "store-of-value", "scarcity" ], "prompt": { "modality": "text", "value": "What feature of Bitcoin supports its use as a scarce store of value, unlike government-issued currency?" }, "options": [ { "modality": "text", "value": "A coupon paid until maturity", "short": "A coupon paid until maturity" }, { "modality": "text", "value": "A guaranteed 90% dividend distribution", "short": "A guaranteed 90% annual payout rule" }, { "modality": "text", "value": "FDIC insurance on all holdings", "short": "FDIC insurance on all of the holdings" }, { "modality": "text", "value": "A fixed supply capped at 21 million coins", "short": "A supply capped at 21 million" } ], "correctIndex": 3, "explanation": "Bitcoin's fixed supply, capped at 21 million coins, gives it a hard scarcity that distinguishes it from government-issued currency that can be printed without limit.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1hxkpzgas2sy6" }, { "id": "ot-mrmkt-1", "shape": "mcq", "tags": [ "mr-market", "graham" ], "prompt": { "modality": "text", "value": "In Graham's metaphor, what does 'Mr. Market' represent?" }, "options": [ { "modality": "text", "value": "The company's own management team", "short": "The company's management team" }, { "modality": "text", "value": "A rational oracle whose price always reflects true value", "short": "A perpetually correct oracle" }, { "modality": "text", "value": "An irrational business partner who quotes you a buy/sell price every day", "short": "Irrational partner, daily quotes" }, { "modality": "text", "value": "A government regulator that sets fair stock prices", "short": "Regulator, setting fair prices" } ], "correctIndex": 2, "explanation": "Graham personified the market as Mr. Market, an irrational partner offering a price daily — sometimes euphorically high, sometimes despairingly low. He is not an oracle of true value.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1jg0zlh79t6zp" }, { "id": "ot-mrmkt-2", "shape": "mcq", "tags": [ "mr-market", "temperament" ], "prompt": { "modality": "text", "value": "How should a wise investor treat Mr. Market's daily price offers?" }, "options": [ { "modality": "text", "value": "As proof that the investor's thesis was wrong", "short": "As proof that the thesis was wrong" }, { "modality": "text", "value": "As opportunities to exploit, not verdicts to obey", "short": "As chances to exploit rather than obey" }, { "modality": "text", "value": "As authoritative signals about the stock's true worth", "short": "As true signals of the stock's real worth" }, { "modality": "text", "value": "As commands that must be followed immediately", "short": "As commands to be obeyed at once" } ], "correctIndex": 1, "explanation": "The wise investor treats Mr. Market's moods as opportunities, not verdicts — exploiting price swings rather than being ruled by them.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1lqqoqn1uouekt" }, { "id": "ot-mrmkt-3", "shape": "mcq", "tags": [ "intrinsic-value", "valuation" ], "prompt": { "modality": "text", "value": "Which statement best defines a stock's intrinsic value?" }, "options": [ { "modality": "text", "value": "What a company is actually worth based on business fundamentals, independent of price", "short": "Worth from business fundamentals" }, { "modality": "text", "value": "The total dividends a company has paid to date", "short": "Total dividends paid to date" }, { "modality": "text", "value": "The price at which the stock currently trades on the market", "short": "The current market trading price" }, { "modality": "text", "value": "The average of a stock's high and low price for the year", "short": "Average of year's high and low" } ], "correctIndex": 0, "explanation": "Intrinsic value is what a company is genuinely worth from its fundamentals, independent of its current market price — the opposite of simply reading the ticker.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "qq5v6u1f5jzcq" }, { "id": "ot-mrmkt-4", "shape": "mcq", "tags": [ "intrinsic-value", "method" ], "prompt": { "modality": "text", "value": "In value investing, estimating a company's intrinsic value is described as what?" }, "options": [ { "modality": "text", "value": "Something only useful for bonds, not stocks" }, { "modality": "text", "value": "Irrelevant once you know the market price" }, { "modality": "text", "value": "The central task of the discipline" }, { "modality": "text", "value": "A minor detail left to accountants" } ], "correctIndex": 2, "explanation": "Estimating intrinsic value is the central task of value investing, because comparing it to price is what reveals a margin of safety.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "crr5zztw23ej" }, { "id": "ot-mrmkt-5", "shape": "mcq", "tags": [ "mr-market", "not-question" ], "prompt": { "modality": "text", "value": "Which of the following is NOT true of Mr. Market as Graham described him?" }, "options": [ { "modality": "text", "value": "He always quotes a price equal to the stock's true intrinsic value", "short": "Always quotes intrinsic value" }, { "modality": "text", "value": "His moods swing from euphoric to despairing", "short": "Moods swing euphoric to gloomy" }, { "modality": "text", "value": "He is an irrational business partner", "short": "An irrational business partner" }, { "modality": "text", "value": "He offers you a price every single day", "short": "Offers a price every single day" } ], "correctIndex": 0, "explanation": "Mr. Market is irrational and his quotes swing between euphoric and despairing — they rarely match intrinsic value, which is exactly why his moods create opportunity.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "wkuco31c7e6s3" }, { "id": "ot-buffett-1", "shape": "mcq", "tags": [ "buffett", "evolution" ], "prompt": { "modality": "text", "value": "How did Buffett begin his investing career, before Munger's influence?" }, "options": [ { "modality": "text", "value": "By trading options on commodity futures", "short": "Trading options on commodity futures" }, { "modality": "text", "value": "By indexing the whole market and holding forever", "short": "Indexing the market and holding" }, { "modality": "text", "value": "As a pure bargain hunter buying stocks below net asset value", "short": "Buying below net asset value" }, { "modality": "text", "value": "By buying wonderful companies at fair prices", "short": "Buying great firms at fair prices" } ], "correctIndex": 2, "explanation": "Buffett started as a pure bargain hunter buying stocks below net asset value; only later, guided by Munger, did he prize quality businesses.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "2vspvoxvzxxk" }, { "id": "ot-buffett-2", "shape": "mcq", "tags": [ "buffett", "biography" ], "prompt": { "modality": "text", "value": "At age eleven, what was Warren Buffett's first stock purchase?" }, "options": [ { "modality": "text", "value": "Three shares of Cities Service Preferred at $38 each", "short": "Three Cities Service Preferred shares" }, { "modality": "text", "value": "Shares of Coca-Cola", "short": "Shares of the Coca-Cola Company" }, { "modality": "text", "value": "A stake in GEICO insurance", "short": "A small stake in GEICO insurance" }, { "modality": "text", "value": "Three shares of Berkshire Hathaway", "short": "Three Berkshire Hathaway shares" } ], "correctIndex": 0, "explanation": "Buffett reportedly made his first purchase at eleven — three shares of Cities Service Preferred at $38 each. Berkshire and Coca-Cola came decades later.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "3mwbuf7f0u25" }, { "id": "ot-buffett-3", "shape": "mcq", "tags": [ "buffett", "berkshire" ], "prompt": { "modality": "text", "value": "Under Buffett, Berkshire Hathaway transformed from what into a global conglomerate?" }, "options": [ { "modality": "text", "value": "A small insurance startup" }, { "modality": "text", "value": "A regional railroad" }, { "modality": "text", "value": "A failing textile mill" }, { "modality": "text", "value": "A struggling newspaper chain" } ], "correctIndex": 2, "explanation": "Berkshire Hathaway grew from a failing textile mill into one of the world's largest conglomerates under Buffett's quality-focused philosophy.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1unt7q165je7i" }, { "id": "ot-margin-1", "shape": "mcq", "tags": [ "margin-of-safety", "definition" ], "prompt": { "modality": "text", "value": "What is the margin of safety in value investing?" }, "options": [ { "modality": "text", "value": "The gap between a stock's intrinsic value and its market price", "short": "Gap: intrinsic value vs price" }, { "modality": "text", "value": "A stock's dividend yield above the risk-free rate", "short": "Yield above the risk-free rate" }, { "modality": "text", "value": "The difference between a stock's high and low price", "short": "Gap between high and low price" }, { "modality": "text", "value": "The percentage of a portfolio held in cash", "short": "Share of portfolio held in cash" } ], "correctIndex": 0, "explanation": "The margin of safety is the gap between intrinsic value and market price — the buffer that lets you be wrong and still profit.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "5v6ygc1rypx6a" }, { "id": "ot-margin-2", "shape": "mcq", "tags": [ "margin-of-safety", "threshold" ], "prompt": { "modality": "text", "value": "What minimum margin of safety do most disciplined value investors typically demand?" }, "options": [ { "modality": "text", "value": "At least 30% to 50%" }, { "modality": "text", "value": "At least 5% to 10%" }, { "modality": "text", "value": "At least 70% to 80%" }, { "modality": "text", "value": "Exactly 100%" } ], "correctIndex": 0, "explanation": "Most disciplined value investors demand a margin of at least 30% to 50%, widening it when the business or macro picture is more uncertain.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "nkjmd614ho6ti" }, { "id": "ot-margin-3", "shape": "mcq", "tags": [ "margin-of-safety", "apply" ], "prompt": { "modality": "text", "value": "If you judge a stock is worth $100 per share but it trades at $50, what is your margin of safety?" }, "options": [ { "modality": "text", "value": "200%" }, { "modality": "text", "value": "50%" }, { "modality": "text", "value": "30%" }, { "modality": "text", "value": "100%" } ], "correctIndex": 1, "explanation": "Margin of safety is the discount from intrinsic value: (intrinsic value − price) ÷ intrinsic value = ($100 − $50) ÷ $100 = 50%. Buying a $100 stock for $50 gives a 50% margin of safety, so even if your estimate is too high and it's really worth only $70, you still profit.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "m6hfxp1yc745n" }, { "id": "ot-margin-4", "shape": "mcq", "tags": [ "margin-of-safety", "uncertainty" ], "prompt": { "modality": "text", "value": "When do value investors widen the margin of safety they require?" }, "options": [ { "modality": "text", "value": "When they are highly confident in the estimate", "short": "When the estimate feels certain" }, { "modality": "text", "value": "When interest rates are falling", "short": "When interest rates are falling" }, { "modality": "text", "value": "When the business or macro picture is more uncertain", "short": "When outlooks turn murkier" }, { "modality": "text", "value": "When the stock has already risen sharply", "short": "When the stock already surged" } ], "correctIndex": 2, "explanation": "Greater uncertainty in the business or macro picture calls for a wider buffer, because the projection is more likely to be wrong.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1troi0k1qbr0rw" }, { "id": "ot-margin-5", "shape": "mcq", "tags": [ "margin-of-safety", "purpose" ], "prompt": { "modality": "text", "value": "The margin of safety primarily protects an investor against what?" }, "options": [ { "modality": "text", "value": "Brokerage fees and trading commissions", "short": "Brokerage fees and commissions" }, { "modality": "text", "value": "The unavoidable error in any valuation projection", "short": "The unavoidable valuation error" }, { "modality": "text", "value": "Inflation eroding cash holdings", "short": "Inflation eroding cash holdings" }, { "modality": "text", "value": "Short-term swings in interest rates", "short": "Swings in short-term rates" } ], "correctIndex": 1, "explanation": "The margin isn't a lazy cushion — it is protection against the unavoidable error in any projection of intrinsic value.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ahb0ahclgfpl" }, { "id": "ot-roic-1", "shape": "mcq", "tags": [ "roic", "threshold" ], "prompt": { "modality": "text", "value": "Above what ROIC is generally considered preferable for a quality business?" }, "options": [ { "modality": "text", "value": "15%" }, { "modality": "text", "value": "30%" }, { "modality": "text", "value": "10%" }, { "modality": "text", "value": "5%" } ], "correctIndex": 0, "explanation": "A ROIC above 10% is generally acceptable, but above 15% is preferable. High sustained ROIC usually signals a durable moat.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1vdbblq1up6q2y" }, { "id": "ot-roic-3", "shape": "mcq", "tags": [ "roic", "meaning" ], "prompt": { "modality": "text", "value": "What does ROIC measure about a company?" }, "options": [ { "modality": "text", "value": "How efficiently it turns capital into profit" }, { "modality": "text", "value": "How much debt it carries relative to equity" }, { "modality": "text", "value": "How large its dividend payout is" }, { "modality": "text", "value": "How fast its revenue is growing" } ], "correctIndex": 0, "explanation": "ROIC measures how efficiently a company turns invested capital into profit — a favorite quality metric of investors like Tom Nash.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ns56p61o8kik2" }, { "id": "ot-moat-1", "shape": "mcq", "tags": [ "moat", "definition" ], "prompt": { "modality": "text", "value": "What is an economic moat?" }, "options": [ { "modality": "text", "value": "A regulatory penalty imposed on monopolies", "short": "Regulatory penalty on monopolies" }, { "modality": "text", "value": "A durable competitive advantage that protects a company's market position", "short": "Durable competitive advantage" }, { "modality": "text", "value": "A short-term gap between price and intrinsic value", "short": "Short-term price/value gap" }, { "modality": "text", "value": "A reserve of cash held for downturns", "short": "Cash reserve for downturns" } ], "correctIndex": 1, "explanation": "A moat is Buffett's term for a durable competitive advantage — pricing power, switching costs, network effects, cost advantages, or brand — that protects profits.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1nwra1l422yzp" }, { "id": "ot-moat-2", "shape": "mcq", "tags": [ "moat", "buffett" ], "prompt": { "modality": "text", "value": "Who is credited with coining the term 'moat' in this investing sense?" }, "options": [ { "modality": "text", "value": "Charlie Munger" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "Warren Buffett" } ], "correctIndex": 3, "explanation": "'Moat' is Buffett's coinage for the thing that protects a company's profits from competitors.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ilq4f88v8p14" }, { "id": "ot-moat-3", "shape": "mcq", "tags": [ "moat", "not-question" ], "prompt": { "modality": "text", "value": "Which of the following is NOT given as an example of an economic moat?" }, "options": [ { "modality": "text", "value": "Switching costs" }, { "modality": "text", "value": "Intangible assets like brand" }, { "modality": "text", "value": "A high dividend payout" }, { "modality": "text", "value": "Network effects" } ], "correctIndex": 2, "explanation": "Moats include pricing power, switching costs, network effects, cost advantages, and intangibles like brand. A high dividend payout is not a competitive advantage.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ruptms1rspt6q" }, { "id": "ot-moat-4", "shape": "mcq", "tags": [ "moat", "roic" ], "prompt": { "modality": "text", "value": "Companies that sustain a high ROIC almost always possess what?" }, "options": [ { "modality": "text", "value": "Razor-thin profit margins", "short": "Razor-thin profit margins" }, { "modality": "text", "value": "A large amount of debt", "short": "A very large debt load" }, { "modality": "text", "value": "A single dominant customer", "short": "One dominant customer" }, { "modality": "text", "value": "A durable competitive advantage, or moat", "short": "A durable competitive moat" } ], "correctIndex": 3, "explanation": "Sustained high ROIC almost always reflects a durable competitive advantage — a moat — that keeps competitors from eroding profits.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1na51fy14yseqe" }, { "id": "ot-moat-5", "shape": "mcq", "tags": [ "moat", "apply" ], "prompt": { "modality": "text", "value": "A platform grows more valuable to each user as more users join, making rivals hard to start. Which moat is this?" }, "options": [ { "modality": "text", "value": "Network effects" }, { "modality": "text", "value": "Switching costs" }, { "modality": "text", "value": "Cost advantages" }, { "modality": "text", "value": "Intangible assets" } ], "correctIndex": 0, "explanation": "Value rising with the number of users is the definition of a network effect. Switching costs trap existing users, cost advantages come from cheaper production, and intangibles are things like brand.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "hvz1v7qg02nv" }, { "id": "ot-income-1", "shape": "mcq", "tags": [ "income-statement", "revenue" ], "prompt": { "modality": "text", "value": "Revenue, the \"top line\" of the income statement, represents what?" }, "options": [ { "modality": "text", "value": "Total sales generated over a period" }, { "modality": "text", "value": "Net income divided by shares outstanding" }, { "modality": "text", "value": "Sales left after subtracting cost of goods sold" }, { "modality": "text", "value": "Cash generated by core operations" } ], "correctIndex": 0, "explanation": "Revenue is the top line: total sales for the period, before any costs are subtracted. Subtracting COGS from it gives gross profit, not revenue itself.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1j2smfifl290s" }, { "id": "ot-income-2", "shape": "mcq", "tags": [ "income-statement", "net-income" ], "prompt": { "modality": "text", "value": "Net income, the \"bottom line,\" is best described as?" }, "options": [ { "modality": "text", "value": "What's left after all expenses, interest, and taxes", "short": "What is left after every cost" }, { "modality": "text", "value": "Revenue minus cost of goods sold only", "short": "Sales minus cost of goods" }, { "modality": "text", "value": "Total sales before any costs are deducted", "short": "All sales before any costs" }, { "modality": "text", "value": "Operating income before interest and taxes", "short": "Operating profit before interest, tax" } ], "correctIndex": 0, "explanation": "Net income is the bottom line remaining after every cost, plus interest and taxes. Revenue minus COGS is gross profit; before interest and taxes is EBIT.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1pno4xh15wvnbn" }, { "id": "ot-income-3", "shape": "mcq", "tags": [ "income-statement", "eps" ], "prompt": { "modality": "text", "value": "How is EPS (earnings per share) calculated?" }, "options": [ { "modality": "text", "value": "Gross profit divided by revenue" }, { "modality": "text", "value": "Net income divided by total assets" }, { "modality": "text", "value": "Revenue divided by shares outstanding" }, { "modality": "text", "value": "Net income divided by shares outstanding" } ], "correctIndex": 3, "explanation": "EPS is net income divided by shares outstanding. Gross profit over revenue is gross margin, a different ratio entirely.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ot0kfrng2rf5" }, { "id": "ot-income-4", "shape": "mcq", "tags": [ "income-statement", "cogs", "gross-profit" ], "prompt": { "modality": "text", "value": "Subtracting COGS (cost of goods sold) from revenue yields which figure?" }, "options": [ { "modality": "text", "value": "EBITDA" }, { "modality": "text", "value": "Gross profit" }, { "modality": "text", "value": "Operating income (EBIT)" }, { "modality": "text", "value": "Net income" } ], "correctIndex": 1, "explanation": "Revenue minus COGS equals gross profit. Operating expenses are then subtracted to reach EBIT, and interest and taxes to reach net income.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "xysgrokf2b2a" }, { "id": "ot-prof-1", "shape": "mcq", "tags": [ "profitability", "ebitda" ], "prompt": { "modality": "text", "value": "What does the acronym EBITDA stand for?" }, "options": [ { "modality": "text", "value": "Earnings Before Investment, Taxes, and Depreciation", "short": "Investment, Taxes, Depreciation" }, { "modality": "text", "value": "Earnings Before Interest, Taxes, Depreciation, and Amortization", "short": "Interest, Taxes, Depreciation, Amortization" }, { "modality": "text", "value": "Earnings Before Interest, Tax, Dividends, and Assets", "short": "Interest, Tax, Dividends, Assets" }, { "modality": "text", "value": "Earnings Before Income, Total Debt, and Assets", "short": "Income, Total Debt, and Assets" } ], "correctIndex": 1, "explanation": "EBITDA is Earnings Before Interest, Taxes, Depreciation, and Amortization — operating income with D&A added back.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "163z79eo0mhx2" }, { "id": "ot-prof-2", "shape": "mcq", "tags": [ "profitability", "ebitda", "cash" ], "prompt": { "modality": "text", "value": "EBITDA is commonly used as a rough proxy for what?" }, "options": [ { "modality": "text", "value": "Cash generation" }, { "modality": "text", "value": "Market valuation" }, { "modality": "text", "value": "Long-term debt capacity" }, { "modality": "text", "value": "Total shareholders' equity" } ], "correctIndex": 0, "explanation": "By adding depreciation and amortization back to operating income, EBITDA serves as a rough proxy for cash generation.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "mguy7idzr30" }, { "id": "ot-prof-3", "shape": "mcq", "tags": [ "profitability", "gross-margin" ], "prompt": { "modality": "text", "value": "How is gross margin calculated?" }, "options": [ { "modality": "text", "value": "Gross profit divided by revenue" }, { "modality": "text", "value": "Operating income divided by total assets" }, { "modality": "text", "value": "Revenue minus operating expenses" }, { "modality": "text", "value": "Net income divided by revenue" } ], "correctIndex": 0, "explanation": "Gross margin is gross profit divided by revenue. Net income over revenue is net margin, which reflects all costs, not just COGS.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "dx9ucknqr84g" }, { "id": "ot-prof-4", "shape": "mcq", "tags": [ "profitability", "gross-margin" ], "prompt": { "modality": "text", "value": "According to the guide, which gross-margin range is typical for hardware companies?" }, "options": [ { "modality": "text", "value": "Above 70%" }, { "modality": "text", "value": "30–50%" }, { "modality": "text", "value": "80–90%" }, { "modality": "text", "value": "10–20%" } ], "correctIndex": 1, "explanation": "The guide says hardware firms typically run 30–50% gross margin, while software firms often exceed 70%.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "818itm1e2wy2s" }, { "id": "ot-prof-5", "shape": "mcq", "tags": [ "profitability", "gross-margin", "pricing-power" ], "prompt": { "modality": "text", "value": "A high, stable gross margin most directly signals what about a company?" }, "options": [ { "modality": "text", "value": "Low debt levels" }, { "modality": "text", "value": "High dividend payouts" }, { "modality": "text", "value": "Pricing power" }, { "modality": "text", "value": "Strong cash reserves" } ], "correctIndex": 2, "explanation": "The guide states that a high, stable gross margin signals pricing power — the ability to charge well above production cost.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "thvlo6hwy6ug" }, { "id": "ot-bal-1", "shape": "mcq", "tags": [ "balance-sheet", "accounting-equation" ], "prompt": { "modality": "text", "value": "The accounting equation states that assets are equal to what?" }, "options": [ { "modality": "text", "value": "Liabilities plus shareholders' equity" }, { "modality": "text", "value": "Liabilities minus shareholders' equity" }, { "modality": "text", "value": "Revenue plus shareholders' equity" }, { "modality": "text", "value": "Shareholders' equity minus liabilities" } ], "correctIndex": 0, "explanation": "Assets = Liabilities + Shareholders' Equity always holds: every asset is financed either by debt or by owners' capital.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "wnt7ef1wih7xl" }, { "id": "ot-bal-2", "shape": "mcq", "tags": [ "balance-sheet", "assets" ], "prompt": { "modality": "text", "value": "On the balance sheet, \"assets\" refers to what?" }, "options": [ { "modality": "text", "value": "What's left for owners after all debts", "short": "What is left over for owners" }, { "modality": "text", "value": "What the company owes to creditors", "short": "What the company owes lenders" }, { "modality": "text", "value": "Total sales generated over the period", "short": "Total sales over the period" }, { "modality": "text", "value": "What the company owns: cash, receivables, inventory, property", "short": "What the company owns outright" } ], "correctIndex": 3, "explanation": "Assets are what the company owns. What it owes is liabilities, and what's left for owners is shareholders' equity.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "j43jfunmoe5s" }, { "id": "ot-bal-3", "shape": "mcq", "tags": [ "balance-sheet", "liabilities", "assets" ], "prompt": { "modality": "text", "value": "Which of the following appears as a liability rather than an asset?" }, "options": [ { "modality": "text", "value": "Goodwill" }, { "modality": "text", "value": "Inventory" }, { "modality": "text", "value": "Accounts receivable" }, { "modality": "text", "value": "Short-term debt" } ], "correctIndex": 3, "explanation": "Short-term debt is what the company owes, so it is a liability. Inventory, receivables, and goodwill are all things the company owns — assets.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1930peb1g2cad3" }, { "id": "ot-bal-4", "shape": "mcq", "tags": [ "balance-sheet", "accounting-equation" ], "prompt": { "modality": "text", "value": "A company reports $800M in assets and $500M in liabilities. What must its shareholders' equity be?" }, "options": [ { "modality": "text", "value": "$500M" }, { "modality": "text", "value": "$1.3B" }, { "modality": "text", "value": "$800M" }, { "modality": "text", "value": "$300M" } ], "correctIndex": 3, "explanation": "By the accounting equation, Assets = Liabilities + Equity, so Equity = 800 − 500 = $300M. Adding the two ($1,300M) or echoing a given figure ignores the identity.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vtpazc5ncmve" }, { "id": "ot-liq-1", "shape": "mcq", "tags": [ "liquidity", "current-ratio" ], "prompt": { "modality": "text", "value": "How is the current ratio calculated?" }, "options": [ { "modality": "text", "value": "Current assets divided by current liabilities" }, { "modality": "text", "value": "Total liabilities divided by total equity" }, { "modality": "text", "value": "Current liabilities divided by current assets" }, { "modality": "text", "value": "Total assets divided by total liabilities" } ], "correctIndex": 0, "explanation": "The current ratio is current assets divided by current liabilities. Total liabilities over total equity is debt-to-equity, a leverage measure.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1w9awyo15gouey" }, { "id": "ot-liq-2", "shape": "mcq", "tags": [ "liquidity", "current-ratio" ], "prompt": { "modality": "text", "value": "A current ratio above what level is generally considered healthy?" }, "options": [ { "modality": "text", "value": "0.5" }, { "modality": "text", "value": "1.0" }, { "modality": "text", "value": "2.5" }, { "modality": "text", "value": "10.0" } ], "correctIndex": 1, "explanation": "The guide says a current ratio above 1.0 is generally healthy — the company can cover its near-term obligations.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "134yvlq6ziels" }, { "id": "ot-liq-3", "shape": "mcq", "tags": [ "leverage", "debt-to-equity" ], "prompt": { "modality": "text", "value": "The debt-to-equity ratio is calculated as?" }, "options": [ { "modality": "text", "value": "Current assets divided by current liabilities" }, { "modality": "text", "value": "Long-term debt divided by revenue" }, { "modality": "text", "value": "Total liabilities divided by total equity" }, { "modality": "text", "value": "Total equity divided by total liabilities" } ], "correctIndex": 2, "explanation": "Debt-to-equity is total liabilities divided by total equity. Current assets over current liabilities is the current ratio instead.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1x468je1u09tlg" }, { "id": "ot-liq-4", "shape": "mcq", "tags": [ "leverage", "debt-to-equity", "risk" ], "prompt": { "modality": "text", "value": "A higher debt-to-equity ratio indicates what about a company?" }, "options": [ { "modality": "text", "value": "Greater free cash flow", "short": "Greater free cash flow generation" }, { "modality": "text", "value": "Stronger short-term liquidity", "short": "Stronger short-term liquidity" }, { "modality": "text", "value": "More financial leverage and greater risk in downturns", "short": "More leverage, more downturn risk" }, { "modality": "text", "value": "Higher gross margins", "short": "Higher gross profit margins" } ], "correctIndex": 2, "explanation": "Higher debt-to-equity means more debt financing — greater leverage and more vulnerability in downturns. Short-term liquidity is measured by the current ratio.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1pk6vdk1a381l8" }, { "id": "ot-liq-5", "shape": "mcq", "tags": [ "liquidity", "current-ratio" ], "prompt": { "modality": "text", "value": "Which ratio is used specifically to gauge a company's short-term liquidity?" }, "options": [ { "modality": "text", "value": "Earnings per share" }, { "modality": "text", "value": "Current ratio" }, { "modality": "text", "value": "Gross margin" }, { "modality": "text", "value": "Debt-to-equity" } ], "correctIndex": 1, "explanation": "The current ratio gauges short-term liquidity. Debt-to-equity measures leverage; gross margin and EPS come from the income statement.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1aq046qs6f9ao" }, { "id": "ot-cf-1", "shape": "mcq", "tags": [ "cash-flow", "operating" ], "prompt": { "modality": "text", "value": "Operating cash flow represents what?" }, "options": [ { "modality": "text", "value": "Cash used for capital expenditures" }, { "modality": "text", "value": "Cash generated by core business operations" }, { "modality": "text", "value": "Cash from issuing or repaying debt" }, { "modality": "text", "value": "What's left after interest and taxes" } ], "correctIndex": 1, "explanation": "Operating cash flow is cash from core operations. Debt activity is financing cash flow and capital expenditures are investing cash flow.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "xz122jckh1az" }, { "id": "ot-cf-2", "shape": "mcq", "tags": [ "cash-flow", "investing" ], "prompt": { "modality": "text", "value": "Investing cash flow, usually negative for growing firms, covers what?" }, "options": [ { "modality": "text", "value": "Cash from core operations", "short": "Cash from core operations" }, { "modality": "text", "value": "Dividends and share buybacks", "short": "Dividends and share buybacks" }, { "modality": "text", "value": "Capital expenditures, acquisitions, and investments", "short": "Capex and acquisitions" }, { "modality": "text", "value": "Repayment of long-term debt", "short": "Repaying the long-term debt" } ], "correctIndex": 2, "explanation": "Investing cash flow covers capex, acquisitions, and investments — usually negative for growing firms. Dividends and buybacks fall under financing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "82bm29v38ekt" }, { "id": "ot-cf-3", "shape": "mcq", "tags": [ "cash-flow", "financing" ], "prompt": { "modality": "text", "value": "Which activities are captured in financing cash flow?" }, "options": [ { "modality": "text", "value": "Issuing/repaying debt, buybacks, and dividends", "short": "Debt, buybacks and dividends" }, { "modality": "text", "value": "Depreciation and amortization", "short": "Depreciation and amortization" }, { "modality": "text", "value": "Core business operations", "short": "Core business operations" }, { "modality": "text", "value": "Capital expenditures and acquisitions", "short": "Capex, and acquisitions" } ], "correctIndex": 0, "explanation": "Financing cash flow captures issuing or repaying debt, share buybacks, and dividends. Capex and acquisitions are investing activities.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1a5r5lnwo3a49" }, { "id": "ot-cf-4", "shape": "mcq", "tags": [ "cash-flow", "fcf" ], "prompt": { "modality": "text", "value": "Free cash flow (FCF) is defined as?" }, "options": [ { "modality": "text", "value": "Operating cash flow minus net income" }, { "modality": "text", "value": "Operating cash flow minus capital expenditures" }, { "modality": "text", "value": "Net income minus dividends paid" }, { "modality": "text", "value": "Revenue minus operating expenses" } ], "correctIndex": 1, "explanation": "FCF is operating cash flow minus capital expenditures — the cash left after maintaining and growing assets, available to return to shareholders.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1haie646dk706" }, { "id": "ot-tvm-1", "shape": "mcq", "tags": [ "time-value", "dcf-concepts" ], "prompt": { "modality": "text", "value": "Which statement best defines the time value of money?" }, "options": [ { "modality": "text", "value": "A dollar in the future is worth more than a dollar today", "short": "A future dollar beats one today" }, { "modality": "text", "value": "A dollar today is worth exactly the same as a dollar in the future", "short": "A dollar's worth never changes" }, { "modality": "text", "value": "A dollar today is worth more than a dollar in the future", "short": "A dollar today beats one later" }, { "modality": "text", "value": "A dollar's worth depends only on inflation, not returns", "short": "Worth depends only on inflation" } ], "correctIndex": 2, "explanation": "The time value of money is the principle that a dollar today is worth more than one in the future, because today's dollar can be invested to earn returns in the meantime.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1suo9dz42n12r" }, { "id": "ot-tvm-2", "shape": "mcq", "tags": [ "time-value", "discounting" ], "prompt": { "modality": "text", "value": "Why must a DCF discount future cash flows back to present value?" }, "options": [ { "modality": "text", "value": "Because future cash flows are guaranteed to shrink", "short": "Future cash flows always shrink" }, { "modality": "text", "value": "Because inflation always exceeds investment returns", "short": "Inflation always exceeds returns" }, { "modality": "text", "value": "Because companies pay dividends only in the present", "short": "Dividends are paid only today" }, { "modality": "text", "value": "Because today's dollar can be invested to earn returns meanwhile", "short": "Today's dollar can earn returns" } ], "correctIndex": 3, "explanation": "Future cash flows are discounted because of the time value of money: a dollar received later is worth less now, since today's dollar could be invested to earn returns in the interim.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "iygcymoymsfo" }, { "id": "ot-tvm-3", "shape": "mcq", "tags": [ "time-value", "discounting" ], "prompt": { "modality": "text", "value": "Which statement about the time value of money is NOT true?" }, "options": [ { "modality": "text", "value": "The further into the future a cash flow lies, the more it is worth today", "short": "Later flows are worth more today" }, { "modality": "text", "value": "A dollar today is worth more than a dollar tomorrow", "short": "A dollar today beats one tomorrow" }, { "modality": "text", "value": "A dollar today can be invested to earn returns", "short": "A dollar today can earn returns" }, { "modality": "text", "value": "It is the reason future cash flows must be discounted", "short": "The reason flows are discounted" } ], "correctIndex": 0, "explanation": "The opposite is true: the further out a cash flow lies, the LESS it is worth today. Distance in time increases discounting, shrinking present value.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "158fwkjbp4qy3" }, { "id": "ot-tvm-4", "shape": "mcq", "tags": [ "time-value", "apply" ], "prompt": { "modality": "text", "value": "A firm will receive $1,000 in year 1 and $1,000 in year 10. Discounted to today, how do their present values compare?" }, "options": [ { "modality": "text", "value": "The year-10 cash flow is worth more today" }, { "modality": "text", "value": "The year-1 cash flow is worth less today" }, { "modality": "text", "value": "They are worth the same today" }, { "modality": "text", "value": "The year-10 cash flow is worth less today" } ], "correctIndex": 3, "explanation": "The more distant a cash flow, the more discounting shrinks it. The year-10 dollar is discounted over more periods, so its present value is lower than the identical year-1 cash flow.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1nboqx9wrp3ih" }, { "id": "ot-tvm-5", "shape": "mcq", "tags": [ "time-value", "dcf-mechanics" ], "prompt": { "modality": "text", "value": "The time value of money is the underlying reason a DCF does what to projected cash flows?" }, "options": [ { "modality": "text", "value": "Discounts them to present value" }, { "modality": "text", "value": "Multiplies them by the terminal value" }, { "modality": "text", "value": "Adds them together without adjustment" }, { "modality": "text", "value": "Converts them into shares outstanding" } ], "correctIndex": 0, "explanation": "Because a dollar tomorrow is worth less than a dollar today, a DCF discounts each projected cash flow back to present value before summing them.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1q2631q21gf3q" }, { "id": "ot-wacc-1", "shape": "mcq", "tags": [ "wacc", "definition" ], "prompt": { "modality": "text", "value": "What does the acronym WACC stand for?" }, "options": [ { "modality": "text", "value": "Weighted Average Cost of Credit" }, { "modality": "text", "value": "Weighted Annual Cost of Capital" }, { "modality": "text", "value": "Working Average Capital Cost" }, { "modality": "text", "value": "Weighted Average Cost of Capital" } ], "correctIndex": 3, "explanation": "WACC is the Weighted Average Cost of Capital — the blended cost of equity and debt used to fund a business, and the discount rate in a DCF.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1gja9y8luulg" }, { "id": "ot-wacc-2", "shape": "mcq", "tags": [ "wacc", "range" ], "prompt": { "modality": "text", "value": "For established U.S. companies, WACC typically falls in which range?" }, "options": [ { "modality": "text", "value": "15–20%" }, { "modality": "text", "value": "4–6%" }, { "modality": "text", "value": "2–3%" }, { "modality": "text", "value": "8–12%" } ], "correctIndex": 3, "explanation": "WACC typically lands around 8–12% for established U.S. firms. The 2–3% figure is the perpetual growth rate g in the Gordon Growth model, not the discount rate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "3i256685dtn2" }, { "id": "ot-wacc-3", "shape": "mcq", "tags": [ "wacc", "discount-rate" ], "prompt": { "modality": "text", "value": "How does a higher WACC affect the present value of a DCF's future cash flows?" }, "options": [ { "modality": "text", "value": "It has no effect on present value" }, { "modality": "text", "value": "It lowers their present value" }, { "modality": "text", "value": "It converts them into terminal value" }, { "modality": "text", "value": "It raises their present value" } ], "correctIndex": 1, "explanation": "WACC is the discount rate: a higher WACC shrinks the present value of future cash flows, while a lower one inflates it.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vrooxa1ongnw4" }, { "id": "ot-wacc-4", "shape": "mcq", "tags": [ "wacc", "dcf-mechanics" ], "prompt": { "modality": "text", "value": "Which best describes WACC's role in a DCF model?" }, "options": [ { "modality": "text", "value": "It is the number of shares outstanding", "short": "The count of shares outstanding" }, { "modality": "text", "value": "It is the perpetual growth rate g", "short": "The perpetual growth rate g" }, { "modality": "text", "value": "It is the terminal value exit multiple", "short": "The terminal exit multiple" }, { "modality": "text", "value": "It is the discount rate r applied to the cash flows", "short": "The rate used to discount cash flows" } ], "correctIndex": 3, "explanation": "WACC serves as the discount rate r in the DCF. The growth rate g, the exit multiple, and shares outstanding are all distinct inputs.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "17594yewfnt4g" }, { "id": "ot-wacc-5", "shape": "mcq", "tags": [ "wacc", "definition" ], "prompt": { "modality": "text", "value": "WACC represents the blended cost of which two sources of capital?" }, "options": [ { "modality": "text", "value": "Revenue and margins" }, { "modality": "text", "value": "Dividends and buybacks" }, { "modality": "text", "value": "Cash and inventory" }, { "modality": "text", "value": "Equity and debt" } ], "correctIndex": 3, "explanation": "WACC is the Weighted Average Cost of Capital — the blended cost of equity and debt used to fund the business.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "k7rave1ej1mi2" }, { "id": "ot-tv-1", "shape": "mcq", "tags": [ "terminal-value", "definition" ], "prompt": { "modality": "text", "value": "What does terminal value represent in a DCF?" }, "options": [ { "modality": "text", "value": "The company's total debt minus cash", "short": "Total debt minus cash on hand" }, { "modality": "text", "value": "The market price of the stock today", "short": "The stock's market price today" }, { "modality": "text", "value": "All the company's cash flows beyond the explicit projection period", "short": "Flows beyond the forecast period" }, { "modality": "text", "value": "The company's free cash flow in the first projected year", "short": "First projected year's cash flow" } ], "correctIndex": 2, "explanation": "Terminal value captures all cash flows beyond the explicit projection window — the company's indefinite future — and usually accounts for the majority of the model's output.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "kn95cs18ap23a" }, { "id": "ot-tv-2", "shape": "mcq", "tags": [ "gordon-growth", "formula" ], "prompt": { "modality": "text", "value": "In the Gordon Growth model, terminal value equals the final year's FCF grown by g, divided by what?" }, "options": [ { "modality": "text", "value": "1 plus r" }, { "modality": "text", "value": "r plus g" }, { "modality": "text", "value": "r minus g" }, { "modality": "text", "value": "g minus r" } ], "correctIndex": 2, "explanation": "The Gordon Growth model sets terminal value as the final year's FCF grown by perpetual rate g, divided by (r − g), where r is the discount rate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "h763621uv3l8u" }, { "id": "ot-tv-3", "shape": "mcq", "tags": [ "terminal-value", "concept" ], "prompt": { "modality": "text", "value": "Why does terminal value usually account for the majority of a DCF's output?" }, "options": [ { "modality": "text", "value": "It ignores the time value of money entirely", "short": "Ignores time value of money" }, { "modality": "text", "value": "It equals market cap plus debt minus cash", "short": "Market cap plus debt minus cash" }, { "modality": "text", "value": "It captures the company's entire indefinite future beyond the projection window", "short": "Covers all future beyond forecast" }, { "modality": "text", "value": "It is discounted at a lower rate than the other cash flows", "short": "Discounted at a lower rate" } ], "correctIndex": 2, "explanation": "Terminal value represents all cash flows beyond the explicit 5–10 year window — the company's whole indefinite future — so it typically dominates the model's total.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vdufpgt7qalm" }, { "id": "ot-ev-1", "shape": "mcq", "tags": [ "enterprise-value", "formula" ], "prompt": { "modality": "text", "value": "How is enterprise value calculated?" }, "options": [ { "modality": "text", "value": "Market capitalization plus debt minus cash" }, { "modality": "text", "value": "Shares outstanding times terminal value" }, { "modality": "text", "value": "Free cash flow divided by (r − g)" }, { "modality": "text", "value": "Market capitalization minus debt plus cash" } ], "correctIndex": 0, "explanation": "Enterprise value = market cap + debt − cash, the total cost to acquire a company outright regardless of how it's financed.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "19ykrav1l5n491" }, { "id": "ot-ev-2", "shape": "mcq", "tags": [ "enterprise-value", "concept" ], "prompt": { "modality": "text", "value": "Enterprise value best represents which of the following?" }, "options": [ { "modality": "text", "value": "The discount rate used in a DCF", "short": "The discount rate in a DCF" }, { "modality": "text", "value": "The total cost to acquire a company outright", "short": "The full cost of buying it outright" }, { "modality": "text", "value": "The company's stock price per share", "short": "The company's price per share" }, { "modality": "text", "value": "The company's annual free cash flow", "short": "The firm's yearly cash flow" } ], "correctIndex": 1, "explanation": "Enterprise value is the total cost to acquire a company outright — it captures the whole business, regardless of financing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "rnx5xj1loc9h1" }, { "id": "ot-ev-3", "shape": "mcq", "tags": [ "enterprise-value", "equity-value" ], "prompt": { "modality": "text", "value": "To move from enterprise value to equity value in a DCF, you do what?" }, "options": [ { "modality": "text", "value": "Add net debt" }, { "modality": "text", "value": "Divide by WACC" }, { "modality": "text", "value": "Subtract net debt" }, { "modality": "text", "value": "Multiply by shares outstanding" } ], "correctIndex": 2, "explanation": "Subtract net debt (total debt minus cash) from enterprise value to reach equity value, then divide by shares outstanding for intrinsic value per share.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1oit1bx130b5ev" }, { "id": "ot-ev-4", "shape": "mcq", "tags": [ "enterprise-value", "which-not" ], "prompt": { "modality": "text", "value": "Which statement about enterprise value is NOT correct?" }, "options": [ { "modality": "text", "value": "It captures the whole business regardless of financing" }, { "modality": "text", "value": "It represents the total cost to acquire a company" }, { "modality": "text", "value": "It excludes a company's debt from the acquisition cost" }, { "modality": "text", "value": "It equals market cap plus debt minus cash" } ], "correctIndex": 2, "explanation": "Enterprise value explicitly ADDS debt (market cap + debt − cash); it does not exclude it. Debt is part of the true cost to acquire the business.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "x72nl21bdnh2k" }, { "id": "ot-ev-5", "shape": "mcq", "tags": [ "enterprise-value", "dcf-steps" ], "prompt": { "modality": "text", "value": "In a DCF, enterprise value is obtained by summing which two things?" }, "options": [ { "modality": "text", "value": "Revenue growth and profit margins", "short": "Revenue growth and profit margins" }, { "modality": "text", "value": "WACC and the terminal growth rate", "short": "WACC and terminal growth rate" }, { "modality": "text", "value": "Market cap and shares outstanding", "short": "Market cap and shares outstanding" }, { "modality": "text", "value": "The present values of the projected cash flows and the terminal value", "short": "PV of cash flows + terminal value" } ], "correctIndex": 3, "explanation": "Enterprise value is the sum of the discounted projected cash flows plus the discounted terminal value; net debt is then subtracted to reach equity value.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "br0pfa1wcjgpy" }, { "id": "ot-def-1", "shape": "mcq", "tags": [ "p-e", "definitions" ], "prompt": { "modality": "text", "value": "The P/E ratio divides the stock price by which per-share figure?" }, "options": [ { "modality": "text", "value": "Earnings per share" }, { "modality": "text", "value": "Free cash flow per share" }, { "modality": "text", "value": "Revenue per share" }, { "modality": "text", "value": "Book value per share" } ], "correctIndex": 0, "explanation": "P/E (Price-to-Earnings) = stock price ÷ earnings per share, showing how much investors pay per dollar of annual profit. Book value drives P/B, revenue drives P/S.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "qoxava3t29wu" }, { "id": "ot-def-2", "shape": "mcq", "tags": [ "p-s", "definitions" ], "prompt": { "modality": "text", "value": "The P/S ratio divides market cap by what?" }, "options": [ { "modality": "text", "value": "Earnings per share" }, { "modality": "text", "value": "Book value" }, { "modality": "text", "value": "Free cash flow" }, { "modality": "text", "value": "Annual revenue" } ], "correctIndex": 3, "explanation": "P/S (Price-to-Sales) = market cap ÷ annual revenue, used when a company is pre-profitable or earnings are temporarily depressed by heavy reinvestment.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "iuefvumyyxam" }, { "id": "ot-def-3", "shape": "mcq", "tags": [ "peg", "definitions" ], "prompt": { "modality": "text", "value": "The PEG ratio is calculated by dividing the P/E ratio by what?" }, "options": [ { "modality": "text", "value": "Book value per share" }, { "modality": "text", "value": "The dividend yield" }, { "modality": "text", "value": "The earnings growth rate" }, { "modality": "text", "value": "The revenue growth rate" } ], "correctIndex": 2, "explanation": "PEG = P/E ÷ earnings growth rate. It normalizes P/E for growth so fast and slow growers compare fairly; a PEG below 1.0 is often seen as undervalued.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "9ai1131ho8zjx" }, { "id": "ot-def-4", "shape": "mcq", "tags": [ "fcf-yield", "definitions" ], "prompt": { "modality": "text", "value": "Which multiple is defined as free cash flow divided by market cap?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "EV/EBITDA" }, { "modality": "text", "value": "FCF yield" }, { "modality": "text", "value": "P/B ratio" } ], "correctIndex": 2, "explanation": "FCF yield = free cash flow ÷ market cap, the inverse of a price-to-FCF ratio. A high yield (8–12%+) suggests a stock is cheap relative to the cash it generates.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "149qvzi1xeeojo" }, { "id": "ot-def-5", "shape": "mcq", "tags": [ "definitions", "which-not" ], "prompt": { "modality": "text", "value": "Which pairing of a multiple with its denominator is INCORRECT?" }, "options": [ { "modality": "text", "value": "EV/EBITDA → EBITDA" }, { "modality": "text", "value": "P/S → annual revenue" }, { "modality": "text", "value": "P/E → book value per share" }, { "modality": "text", "value": "P/B → book value per share" } ], "correctIndex": 2, "explanation": "P/E divides price by earnings per share, not book value. Book value per share is the denominator for P/B; the other three pairings are correct.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ca5luzbj1yz" }, { "id": "ot-recall-1", "shape": "mcq", "tags": [ "p-s", "cloze" ], "prompt": { "modality": "text", "value": "'___ = market cap divided by annual revenue.' Which multiple fills the blank?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "P/E ratio" }, { "modality": "text", "value": "P/S ratio" }, { "modality": "text", "value": "P/B ratio" } ], "correctIndex": 2, "explanation": "P/S (Price-to-Sales) is market cap ÷ annual revenue. P/E uses earnings, P/B uses book value, and PEG divides P/E by growth.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "21hquz1e4642p" }, { "id": "ot-recall-2", "shape": "mcq", "tags": [ "p-b", "cloze" ], "prompt": { "modality": "text", "value": "'___ = stock price divided by book value per share.' Which multiple fills the blank?" }, "options": [ { "modality": "text", "value": "EV/EBITDA" }, { "modality": "text", "value": "P/S ratio" }, { "modality": "text", "value": "P/E ratio" }, { "modality": "text", "value": "P/B ratio" } ], "correctIndex": 3, "explanation": "P/B (Price-to-Book) = price ÷ book value per share, most useful for banks and asset-heavy firms where balance-sheet value tracks earning power.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "otzn7owcg89y" }, { "id": "ot-recall-3", "shape": "mcq", "tags": [ "true-false", "definitions" ], "prompt": { "modality": "text", "value": "Which of these statements about a multiple is TRUE?" }, "options": [ { "modality": "text", "value": "P/B is stock price divided by earnings", "short": "P/B is the price over earnings" }, { "modality": "text", "value": "FCF yield is free cash flow divided by market cap", "short": "FCF yield: cash over cap" }, { "modality": "text", "value": "P/E is stock price divided by revenue", "short": "P/E is the price over revenue" }, { "modality": "text", "value": "PEG is P/E multiplied by the growth rate", "short": "PEG is P/E times the growth" } ], "correctIndex": 1, "explanation": "FCF yield = free cash flow ÷ market cap. P/E uses earnings (not revenue), P/B uses book value (not earnings), and PEG divides (not multiplies) P/E by growth.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "smbs5s1jheqqg" }, { "id": "ot-recall-4", "shape": "mcq", "tags": [ "peg", "cloze" ], "prompt": { "modality": "text", "value": "'___ = P/E divided by the earnings growth rate.' Which multiple fills the blank?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "P/S ratio" }, { "modality": "text", "value": "FCF yield" }, { "modality": "text", "value": "EV/EBITDA" } ], "correctIndex": 0, "explanation": "PEG = P/E ÷ earnings growth rate, normalizing P/E for growth. A PEG below 1.0 is often considered undervalued.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "19lrkkz1fzczvf" }, { "id": "ot-recall-5", "shape": "mcq", "tags": [ "true-false", "which-not" ], "prompt": { "modality": "text", "value": "Which of these statements is FALSE?" }, "options": [ { "modality": "text", "value": "PEG normalizes P/E for growth", "short": "PEG normalizes P/E for growth" }, { "modality": "text", "value": "P/S is market cap divided by annual revenue", "short": "P/S is cap over yearly revenue" }, { "modality": "text", "value": "P/E is price divided by book value per share", "short": "P/E is price over book value" }, { "modality": "text", "value": "EV/EBITDA is enterprise value divided by EBITDA", "short": "EV/EBITDA is value over EBITDA" } ], "correctIndex": 2, "explanation": "P/E divides price by earnings per share, not book value — that describes P/B. The other three statements are accurate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "xyx70h1vx1wch" }, { "id": "ot-choose-1", "shape": "mcq", "tags": [ "ev-ebitda", "m-and-a" ], "prompt": { "modality": "text", "value": "For a merger or comparing companies with different capital structures, which multiple is the right tool?" }, "options": [ { "modality": "text", "value": "EV/EBITDA" }, { "modality": "text", "value": "P/B ratio" }, { "modality": "text", "value": "P/S ratio" }, { "modality": "text", "value": "P/E ratio" } ], "correctIndex": 0, "explanation": "EV/EBITDA looks at the whole enterprise (debt plus equity) before financing choices, making it the standard for M&A, LBOs, and cross-capital-structure comparisons.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ygztuf1kjqyr" }, { "id": "ot-choose-2", "shape": "mcq", "tags": [ "p-b", "banks" ], "prompt": { "modality": "text", "value": "Which multiple is most revealing for banks and asset-heavy industries?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "EV/EBITDA" }, { "modality": "text", "value": "P/S ratio" }, { "modality": "text", "value": "P/B ratio" } ], "correctIndex": 3, "explanation": "P/B (Price-to-Book) is most useful for banks and asset-heavy firms, where balance-sheet value closely tracks earning power.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "5rfsel9c011l" }, { "id": "ot-choose-3", "shape": "mcq", "tags": [ "peg", "growth" ], "prompt": { "modality": "text", "value": "A growth stock has a scary-looking P/E. Which multiple best judges whether that premium is justified by growth?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "FCF yield" }, { "modality": "text", "value": "P/B ratio" }, { "modality": "text", "value": "EV/EBITDA" } ], "correctIndex": 0, "explanation": "PEG adjusts P/E for the earnings growth rate, so a high P/E can look reasonable once growth is included — a PEG below 1.0 suggests the premium is justified.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "18e075l16sksu7" }, { "id": "ot-bench-1", "shape": "mcq", "tags": [ "benchmark", "p-e" ], "prompt": { "modality": "text", "value": "The S&P 500 has historically averaged a P/E ratio in roughly what range?" }, "options": [ { "modality": "text", "value": "1–5x" }, { "modality": "text", "value": "6–10x" }, { "modality": "text", "value": "15–20x" }, { "modality": "text", "value": "30–60x" } ], "correctIndex": 2, "explanation": "The S&P 500 historically averages a P/E of about 15–20x. 6–10x is closer to cheap value or mature industrials, while 30–60x describes fast-growing tech.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "155h1j8xpdznw" }, { "id": "ot-bench-2", "shape": "mcq", "tags": [ "benchmark", "tech" ], "prompt": { "modality": "text", "value": "Fast-growing tech companies often trade at what P/E range?" }, "options": [ { "modality": "text", "value": "15–20x" }, { "modality": "text", "value": "30–60x or higher" }, { "modality": "text", "value": "6–10x" }, { "modality": "text", "value": "8–12x" } ], "correctIndex": 1, "explanation": "Fast-growing tech often trades at 30–60x or higher. 15–20x is the S&P 500 average and 8–12x is where 'cheap' value stocks may sit.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "tn9p7iyzijds" }, { "id": "ot-bench-3", "shape": "mcq", "tags": [ "benchmark", "value" ], "prompt": { "modality": "text", "value": "According to the guide, 'cheap' value stocks may sit at roughly what P/E?" }, "options": [ { "modality": "text", "value": "15–20x" }, { "modality": "text", "value": "30–60x" }, { "modality": "text", "value": "20–40x" }, { "modality": "text", "value": "8–12x" } ], "correctIndex": 3, "explanation": "'Cheap' value stocks may sit around 8–12x. 15–20x is the market average and 30–60x is fast-growing tech territory.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "sm76hd2zngq5" }, { "id": "ot-bench-4", "shape": "mcq", "tags": [ "context", "interpretation" ], "prompt": { "modality": "text", "value": "A stagnant utility and a fast-growing cloud business both show a 'high' P/E. What does the guide conclude?" }, "options": [ { "modality": "text", "value": "Both stocks should be avoided", "short": "Both stocks are best avoided" }, { "modality": "text", "value": "The same high P/E signals very different things depending on context", "short": "Same ratio, different meanings" }, { "modality": "text", "value": "Both stocks are equally overvalued", "short": "Both are equally overvalued today" }, { "modality": "text", "value": "The utility is the safer buy of the two", "short": "The utility is safer to buy" } ], "correctIndex": 1, "explanation": "The guide's core lesson is that context is everything — a 'high' P/E for a stagnant utility means something entirely different than for a fast-growing cloud business.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1tql5gh1p39zv9" }, { "id": "ot-bench-5", "shape": "mcq", "tags": [ "benchmark", "ev-ebitda" ], "prompt": { "modality": "text", "value": "SaaS companies can carry EV/EBITDA multiples in what range, versus 6–10x for mature industrials?" }, "options": [ { "modality": "text", "value": "1–5x" }, { "modality": "text", "value": "6–10x" }, { "modality": "text", "value": "20–40x" }, { "modality": "text", "value": "50–100x" } ], "correctIndex": 2, "explanation": "The guide cites SaaS EV/EBITDA multiples of 20–40x against just 6–10x for mature industrials, illustrating how growth reshapes 'normal' ranges.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1q5gik52oxl1p" }, { "id": "ot-r72high-1", "shape": "mcq", "tags": [ "rule-of-72", "doubling" ], "prompt": { "modality": "text", "value": "By the Rule of 72, about how many years does it take to double your money at a 10% annual return?" }, "options": [ { "modality": "text", "value": "7.2 years" }, { "modality": "text", "value": "9 years" }, { "modality": "text", "value": "6 years" }, { "modality": "text", "value": "10 years" } ], "correctIndex": 0, "explanation": "72 ÷ 10 = 7.2 years. 10% is roughly the long-run S&P 500 average, so money doubles in about 7.2 years.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "zwz0lx17erurp" }, { "id": "ot-r72high-2", "shape": "mcq", "tags": [ "rule-of-72", "doubling" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years does it take to double your money at a 12% annual return?" }, "options": [ { "modality": "text", "value": "7.2 years" }, { "modality": "text", "value": "6 years" }, { "modality": "text", "value": "8 years" }, { "modality": "text", "value": "5 years" } ], "correctIndex": 1, "explanation": "72 ÷ 12 = 6 years. A higher return means faster doubling than the 7.2 years you'd get at 10%.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1cgrv9e1hakbo6" }, { "id": "ot-r72high-3", "shape": "mcq", "tags": [ "rule-of-72", "doubling" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years does it take to double your money at an 8% annual return?" }, "options": [ { "modality": "text", "value": "6 years" }, { "modality": "text", "value": "9 years" }, { "modality": "text", "value": "8 years" }, { "modality": "text", "value": "12 years" } ], "correctIndex": 1, "explanation": "72 ÷ 8 = 9 years. The rule is especially reliable in this 6–10% range.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1sa7f6jdiub" }, { "id": "ot-r72high-4", "shape": "mcq", "tags": [ "rule-of-72", "compare" ], "prompt": { "modality": "text", "value": "Which annual return doubles your money the FASTEST, by the Rule of 72?" }, "options": [ { "modality": "text", "value": "8%" }, { "modality": "text", "value": "12%" }, { "modality": "text", "value": "10%" }, { "modality": "text", "value": "6%" } ], "correctIndex": 1, "explanation": "The higher the return, the smaller 72 ÷ rate becomes. 12% doubles in 6 years, versus 7.2 at 10% and 9 at 8%.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1yo5q8q1oypozk" }, { "id": "ot-r72high-5", "shape": "mcq", "tags": [ "rule-of-72", "not" ], "prompt": { "modality": "text", "value": "Which rate-and-doubling-time pairing is NOT correct under the Rule of 72?" }, "options": [ { "modality": "text", "value": "10% → 7.2 years" }, { "modality": "text", "value": "12% → 6 years" }, { "modality": "text", "value": "8% → 9 years" }, { "modality": "text", "value": "12% → 9 years" } ], "correctIndex": 3, "explanation": "72 ÷ 12 = 6 years, not 9. The 9-year doubling time belongs to an 8% return (72 ÷ 8).", "source": { "label": "Investing 201 — Objective Test" }, "uid": "14spnuczfr8xu" }, { "id": "ot-r72low-1", "shape": "mcq", "tags": [ "rule-of-72", "low-rates" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years does it take to double your money at a 4% annual return, typical of bonds?" }, "options": [ { "modality": "text", "value": "18 years" }, { "modality": "text", "value": "14 years" }, { "modality": "text", "value": "9 years" }, { "modality": "text", "value": "24 years" } ], "correctIndex": 0, "explanation": "72 ÷ 4 = 18 years. Lower returns mean far slower doubling than stock-like rates.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "19vxfkyt8u5zq" }, { "id": "ot-r72low-2", "shape": "mcq", "tags": [ "rule-of-72", "low-rates" ], "prompt": { "modality": "text", "value": "By the Rule of 72, how many years does it take to double your money at a 2% savings-account return?" }, "options": [ { "modality": "text", "value": "36 years" }, { "modality": "text", "value": "18 years" }, { "modality": "text", "value": "72 years" }, { "modality": "text", "value": "24 years" } ], "correctIndex": 0, "explanation": "72 ÷ 2 = 36 years. At savings-account rates, doubling takes a sluggish 36 years.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "70ncvfefwr8h" }, { "id": "ot-r72low-3", "shape": "mcq", "tags": [ "rule-of-72", "inflation" ], "prompt": { "modality": "text", "value": "Applying the Rule of 72 to 3.5% annual inflation, how long until cash loses half its purchasing power?" }, "options": [ { "modality": "text", "value": "About 36 years" }, { "modality": "text", "value": "About 7 years" }, { "modality": "text", "value": "About 10 years" }, { "modality": "text", "value": "About 20 years" } ], "correctIndex": 3, "explanation": "72 ÷ 3.5 ≈ 20 years. The rule works for losses too: idle cash halves in buying power in roughly two decades.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1vtqg02h8o09q" }, { "id": "ot-r72low-4", "shape": "mcq", "tags": [ "rule-of-72", "compare" ], "prompt": { "modality": "text", "value": "Which rate takes the LONGEST to double your money, by the Rule of 72?" }, "options": [ { "modality": "text", "value": "10%" }, { "modality": "text", "value": "8%" }, { "modality": "text", "value": "4%" }, { "modality": "text", "value": "2%" } ], "correctIndex": 3, "explanation": "The lower the return, the larger 72 ÷ rate becomes. 2% takes 36 years, versus 18 at 4% and far less above that.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1hu1ylq1bje120" }, { "id": "ot-r72inv-1", "shape": "mcq", "tags": [ "rule-of-72", "reverse" ], "prompt": { "modality": "text", "value": "To double your money in 6 years, what annual return do you need by the Rule of 72?" }, "options": [ { "modality": "text", "value": "12%" }, { "modality": "text", "value": "18%" }, { "modality": "text", "value": "6%" }, { "modality": "text", "value": "9%" } ], "correctIndex": 0, "explanation": "Run the rule backward: 72 ÷ 6 = 12%. Divide 72 by the target years to find the required return.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1rhpd5r1amdc0r" }, { "id": "ot-r72inv-2", "shape": "mcq", "tags": [ "rule-of-72", "reverse" ], "prompt": { "modality": "text", "value": "To double your money in 4 years, what annual return does the Rule of 72 say you need?" }, "options": [ { "modality": "text", "value": "24%" }, { "modality": "text", "value": "16%" }, { "modality": "text", "value": "12%" }, { "modality": "text", "value": "18%" } ], "correctIndex": 3, "explanation": "72 ÷ 4 = 18%. A 4-year doubling demands a high 18% return, a demanding target worth scrutiny.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1y4zn66vc4tl6" }, { "id": "ot-r72inv-3", "shape": "mcq", "tags": [ "rule-of-72", "scrutiny" ], "prompt": { "modality": "text", "value": "An advisor promises to double your money in just 2 years. What annual return does that imply by the Rule of 72?" }, "options": [ { "modality": "text", "value": "About 24%" }, { "modality": "text", "value": "About 12%" }, { "modality": "text", "value": "About 36%" }, { "modality": "text", "value": "About 18%" } ], "correctIndex": 2, "explanation": "72 ÷ 2 = 36%. An implied 36% return is implausibly high and should invite scrutiny rather than trust.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1p9y42dizb3vj" }, { "id": "ot-r72inv-4", "shape": "mcq", "tags": [ "rule-of-72", "reverse" ], "prompt": { "modality": "text", "value": "A pitch claiming to double your money in 9 years implies roughly what annual return, by the Rule of 72?" }, "options": [ { "modality": "text", "value": "8%" }, { "modality": "text", "value": "9%" }, { "modality": "text", "value": "12%" }, { "modality": "text", "value": "6%" } ], "correctIndex": 0, "explanation": "72 ÷ 9 = 8%. An 8% implied return is realistic, unlike a 2- or 3-year doubling that implies 24–36%.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1bbcgrjucl03n" }, { "id": "ot-index-etf-1", "shape": "mcq", "tags": [ "index-fund", "passive" ], "prompt": { "modality": "text", "value": "What does an index fund do?" }, "options": [ { "modality": "text", "value": "Holds only bonds to guarantee a fixed annual return", "short": "Holds only bonds for fixed return" }, { "modality": "text", "value": "Tracks a market index by buying all its constituents in proportion to their weight", "short": "Tracks an index at its weights" }, { "modality": "text", "value": "Hand-picks a few undervalued stocks a manager expects to beat the market", "short": "Picks stocks to beat the market" }, { "modality": "text", "value": "Trades in and out of positions daily to exploit short-term price swings", "short": "Trades daily on short-term swings" } ], "correctIndex": 1, "explanation": "An index fund tracks a market index (like the S&P 500) by holding all its constituents in proportion to weight — aiming to match the market, not beat it.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "twleeuebs11e" }, { "id": "ot-index-etf-2", "shape": "mcq", "tags": [ "etf", "index-fund" ], "prompt": { "modality": "text", "value": "How does an ETF differ from a traditional index fund?" }, "options": [ { "modality": "text", "value": "It trades intraday on an exchange like a stock", "short": "It trades on an exchange all day" }, { "modality": "text", "value": "It charges no expense ratio at all", "short": "It has zero expense ratio" }, { "modality": "text", "value": "It guarantees higher returns than the underlying index", "short": "It guarantees higher index returns" }, { "modality": "text", "value": "It is only available to institutional investors", "short": "It is open only to large institutions" } ], "correctIndex": 0, "explanation": "An ETF is like an index fund but trades intraday on an exchange like a stock. Both still charge low expense ratios and neither guarantees returns.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "sojmyoz0fjf6" }, { "id": "ot-index-etf-3", "shape": "mcq", "tags": [ "etf", "fees" ], "prompt": { "modality": "text", "value": "What is a typical expense ratio for an ETF?" }, "options": [ { "modality": "text", "value": "5–10%" }, { "modality": "text", "value": "0.03–0.20%" }, { "modality": "text", "value": "0.75–1.5%" }, { "modality": "text", "value": "1–2%" } ], "correctIndex": 1, "explanation": "ETFs commonly carry expense ratios of 0.03–0.20%, versus the 1–2% charged by actively managed funds — one of their core advantages.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "v51ef11bszavz" }, { "id": "ot-index-etf-4", "shape": "mcq", "tags": [ "index-fund", "etf" ], "prompt": { "modality": "text", "value": "Which is NOT one of the three big advantages of index funds and ETFs described in the lesson?" }, "options": [ { "modality": "text", "value": "Tax efficiency", "short": "A tax-efficient structure" }, { "modality": "text", "value": "Low fees", "short": "Consistently low annual fees" }, { "modality": "text", "value": "Instant diversification", "short": "Instant broad diversification" }, { "modality": "text", "value": "A guarantee of beating the market", "short": "A guaranteed market win" } ], "correctIndex": 3, "explanation": "The three advantages are low fees, instant diversification, and tax efficiency. Index funds aim to match the market, not beat it — no returns are guaranteed.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1t600lh9lcl7n" }, { "id": "ot-index-etf-5", "shape": "mcq", "tags": [ "etf", "apply" ], "prompt": { "modality": "text", "value": "A beginner wants a single vehicle that holds the whole S&P 500 but can be bought and sold anytime the market is open. Which fits best?" }, "options": [ { "modality": "text", "value": "An actively managed mutual fund" }, { "modality": "text", "value": "A day-trading account" }, { "modality": "text", "value": "An ETF" }, { "modality": "text", "value": "A dividend aristocrat's individual stock" } ], "correctIndex": 2, "explanation": "An ETF tracks an index like the S&P 500 while trading intraday on an exchange, so it can be bought or sold whenever the market is open.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1nefzplrcsael" }, { "id": "ot-tickers-1", "shape": "mcq", "tags": [ "tickers", "spy" ], "prompt": { "modality": "text", "value": "Which index does the ETF ticker SPY track?" }, "options": [ { "modality": "text", "value": "The total U.S. stock market" }, { "modality": "text", "value": "The Nasdaq 100" }, { "modality": "text", "value": "The S&P 500" }, { "modality": "text", "value": "The Russell 2000" } ], "correctIndex": 2, "explanation": "SPY tracks the S&P 500. QQQ tracks the Nasdaq 100, IWM the Russell 2000, and VTI the total U.S. stock market.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "131p6ezt6epkn" }, { "id": "ot-tickers-2", "shape": "mcq", "tags": [ "tickers", "qqq" ], "prompt": { "modality": "text", "value": "Which index does the ETF ticker QQQ track?" }, "options": [ { "modality": "text", "value": "The Russell 2000" }, { "modality": "text", "value": "The total U.S. stock market" }, { "modality": "text", "value": "The Nasdaq 100" }, { "modality": "text", "value": "The S&P 500" } ], "correctIndex": 2, "explanation": "QQQ tracks the Nasdaq 100. SPY tracks the S&P 500, IWM the Russell 2000, and VTI the total U.S. stock market.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "r7nl9ookm0qi" }, { "id": "ot-tickers-3", "shape": "mcq", "tags": [ "tickers", "vti" ], "prompt": { "modality": "text", "value": "Which ETF ticker tracks the total U.S. stock market?" }, "options": [ { "modality": "text", "value": "SPY" }, { "modality": "text", "value": "VTI" }, { "modality": "text", "value": "IWM" }, { "modality": "text", "value": "QQQ" } ], "correctIndex": 1, "explanation": "VTI tracks the total U.S. stock market. SPY tracks the S&P 500, QQQ the Nasdaq 100, and IWM the small-cap Russell 2000.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "196eslo18g78k6" }, { "id": "ot-tickers-4", "shape": "mcq", "tags": [ "tickers", "compare" ], "prompt": { "modality": "text", "value": "Which ticker-to-index pairing is INCORRECT?" }, "options": [ { "modality": "text", "value": "SPY tracks the S&P 500" }, { "modality": "text", "value": "IWM tracks the Russell 2000" }, { "modality": "text", "value": "QQQ tracks the S&P 500" }, { "modality": "text", "value": "VTI tracks the total U.S. stock market" } ], "correctIndex": 2, "explanation": "QQQ tracks the Nasdaq 100, not the S&P 500 — SPY is the S&P 500 ticker. The other three pairings are correct.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "105vvkd15rusl9" }, { "id": "ot-styles-1", "shape": "mcq", "tags": [ "growth", "active-styles" ], "prompt": { "modality": "text", "value": "What defines growth investing?" }, "options": [ { "modality": "text", "value": "Buying stocks trading below their intrinsic value", "short": "Buying stocks below intrinsic value" }, { "modality": "text", "value": "Paying premium prices for companies expanding revenue and earnings fast", "short": "Paying up for fast-growing companies" }, { "modality": "text", "value": "Focusing on firms with consistent, rising dividend payouts", "short": "Firms with rising dividend payouts" }, { "modality": "text", "value": "Investing a fixed dollar amount at regular intervals", "short": "Fixed amount at regular intervals" } ], "correctIndex": 1, "explanation": "Growth investing seeks companies growing revenue and earnings above average, paying premium valuations for high future returns. Buying below intrinsic value is value investing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "h2nb471xyduln" }, { "id": "ot-styles-2", "shape": "mcq", "tags": [ "value", "active-styles" ], "prompt": { "modality": "text", "value": "In the Graham-and-Buffett tradition, value investing aims to do what?" }, "options": [ { "modality": "text", "value": "Trade in and out of positions within a single session" }, { "modality": "text", "value": "Collect 25+ years of rising dividends" }, { "modality": "text", "value": "Pay premium prices for the fastest-growing companies" }, { "modality": "text", "value": "Buy stocks trading below their intrinsic value" } ], "correctIndex": 3, "explanation": "Value investing buys stocks below intrinsic value — 'dollars for fifty cents' — increasingly screening for quality like high ROIC and durable moats.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "o7trlkfw4hjs" }, { "id": "ot-styles-3", "shape": "mcq", "tags": [ "dividend", "aristocrat" ], "prompt": { "modality": "text", "value": "What qualifies a company as a Dividend Aristocrat?" }, "options": [ { "modality": "text", "value": "A firm whose stock trades below intrinsic value", "short": "Trades under a fair intrinsic value" }, { "modality": "text", "value": "A company growing revenue at an above-average rate", "short": "Grows revenue at above-average rates" }, { "modality": "text", "value": "An S&P 500 firm that has raised its dividend for 25+ consecutive years", "short": "S&P 500 firm with 25+ years of hikes" }, { "modality": "text", "value": "Any company that has paid a dividend at least once", "short": "A firm that has paid any dividend ever" } ], "correctIndex": 2, "explanation": "Dividend Aristocrats are S&P 500 firms with 25+ consecutive years of dividend increases — the income investor's blue chips.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1j3cj32sgbapu" }, { "id": "ot-styles-4", "shape": "mcq", "tags": [ "active-styles", "compare" ], "prompt": { "modality": "text", "value": "Which description does NOT match its investing style?" }, "options": [ { "modality": "text", "value": "Value investing: buying dollars for fifty cents", "short": "Value: buying dollars for 50 cents" }, { "modality": "text", "value": "Growth investing: paying premium prices for fast-growing companies", "short": "Growth: paying up for fast growers" }, { "modality": "text", "value": "Dividend investing: focusing on consistent, rising payouts", "short": "Dividend: consistent, rising payouts" }, { "modality": "text", "value": "Dividend investing: buying stocks trading below intrinsic value", "short": "Dividend: buy below intrinsic value" } ], "correctIndex": 3, "explanation": "Buying below intrinsic value is value investing, not dividend investing. Dividend investing focuses on companies with consistent, rising payouts.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "xgnaip1gtct63" }, { "id": "ot-styles-5", "shape": "mcq", "tags": [ "value", "apply" ], "prompt": { "modality": "text", "value": "An investor screens for firms with high ROIC and durable moats trading for less than they're worth. Which style is this?" }, "options": [ { "modality": "text", "value": "Growth investing" }, { "modality": "text", "value": "Dividend investing" }, { "modality": "text", "value": "Value investing" }, { "modality": "text", "value": "Day trading" } ], "correctIndex": 2, "explanation": "Screening for quality traits like high ROIC and durable moats while buying below intrinsic value is the modern value-investing approach.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "svszyr80z7jr" }, { "id": "ot-dca-1", "shape": "mcq", "tags": [ "dca", "definition" ], "prompt": { "modality": "text", "value": "What is dollar-cost averaging (DCA)?" }, "options": [ { "modality": "text", "value": "Investing a lump sum only when prices look cheapest", "short": "Lump sum when prices look cheap" }, { "modality": "text", "value": "Buying more shares only after prices rise", "short": "Buying more only after prices rise" }, { "modality": "text", "value": "Investing a fixed dollar amount at regular intervals regardless of price", "short": "Fixed amount at regular intervals" }, { "modality": "text", "value": "Selling a fixed fraction of your portfolio each month", "short": "Selling off a fixed share each month" } ], "correctIndex": 2, "explanation": "DCA means investing a fixed dollar amount at regular intervals regardless of price — a discipline, not a market-timing bet.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "13kxxwspq8p8c" }, { "id": "ot-dca-2", "shape": "mcq", "tags": [ "dca", "behavioral" ], "prompt": { "modality": "text", "value": "What is the key behavioral benefit of dollar-cost averaging?" }, "options": [ { "modality": "text", "value": "It removes the psychological burden of timing the market", "short": "It removes timing stress" }, { "modality": "text", "value": "It guarantees you buy at the market's lowest price", "short": "It guarantees the lowest price" }, { "modality": "text", "value": "It eliminates all investment risk", "short": "It eliminates investment risk" }, { "modality": "text", "value": "It locks in a fixed annual return", "short": "It locks in a fixed return" } ], "correctIndex": 0, "explanation": "DCA's main benefit is behavioral: by investing on a schedule it removes the psychological burden of timing the market and smooths volatility.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "b6426pwnxdjh" }, { "id": "ot-dca-3", "shape": "mcq", "tags": [ "dca", "mechanics" ], "prompt": { "modality": "text", "value": "Because the invested dollar amount stays fixed, what does DCA automatically do when prices fall?" }, "options": [ { "modality": "text", "value": "Buys more shares" }, { "modality": "text", "value": "Pauses investing until prices recover" }, { "modality": "text", "value": "Buys fewer shares" }, { "modality": "text", "value": "Sells shares to raise cash" } ], "correctIndex": 0, "explanation": "A fixed dollar amount buys more shares when prices are low and fewer when high, automatically tilting purchases toward cheaper prices.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1fs0bc1d0k77p" }, { "id": "ot-dca-4", "shape": "mcq", "tags": [ "dca", "misconception" ], "prompt": { "modality": "text", "value": "Which statement about dollar-cost averaging is FALSE?" }, "options": [ { "modality": "text", "value": "It removes the burden of timing the market", "short": "It removes the market-timing burden" }, { "modality": "text", "value": "It buys more shares when prices are low", "short": "It buys more when cheap" }, { "modality": "text", "value": "It invests a fixed dollar amount at regular intervals", "short": "It invests a fixed sum regularly" }, { "modality": "text", "value": "It guarantees a profit regardless of what the market does", "short": "It guarantees a profit always" } ], "correctIndex": 3, "explanation": "DCA smooths volatility and removes timing pressure, but it guarantees nothing — it is a discipline, not a promise of profit.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "13y242p1kdp5st" }, { "id": "ot-dca-5", "shape": "mcq", "tags": [ "dca", "apply" ], "prompt": { "modality": "text", "value": "An investor puts $500 into the same ETF on the first of every month, no matter the price. Which strategy is this?" }, "options": [ { "modality": "text", "value": "Value investing", "short": "Value investing" }, { "modality": "text", "value": "Dollar-cost averaging", "short": "Dollar-cost averaging" }, { "modality": "text", "value": "Swing trading", "short": "Short-term swing trading" }, { "modality": "text", "value": "Day trading", "short": "Active day trading" } ], "correctIndex": 1, "explanation": "Investing a fixed dollar amount ($500) at regular intervals (monthly) regardless of price is the definition of dollar-cost averaging.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ge0ft8fupd5o" }, { "id": "ot-trading-1", "shape": "mcq", "tags": [ "day-trading", "horizon" ], "prompt": { "modality": "text", "value": "What holding period defines day trading?" }, "options": [ { "modality": "text", "value": "Holding for years or decades", "short": "Holding for years or decades" }, { "modality": "text", "value": "Holding for months", "short": "Holding for a few months" }, { "modality": "text", "value": "Holding for days to weeks", "short": "Holding for days to weeks" }, { "modality": "text", "value": "Buying and selling within a single session", "short": "Holding for one session" } ], "correctIndex": 3, "explanation": "Day trading means buying and selling within a single session — the shortest horizon and, per the lesson, extremely high-risk.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "pm4no41uznl2g" }, { "id": "ot-trading-2", "shape": "mcq", "tags": [ "swing-trading", "horizon" ], "prompt": { "modality": "text", "value": "Swing trading typically holds positions for how long, and on what basis?" }, "options": [ { "modality": "text", "value": "Days to weeks, based on technical patterns" }, { "modality": "text", "value": "Years, based on long-term compounding" }, { "modality": "text", "value": "A single trading session, based on intraday moves" }, { "modality": "text", "value": "Months, based on macro and fundamental views" } ], "correctIndex": 0, "explanation": "Swing trading holds for days to weeks based on technical patterns — longer than day trading but shorter than position trading.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "o671ao1u97yhu" }, { "id": "ot-trading-3", "shape": "mcq", "tags": [ "position-trading", "horizon" ], "prompt": { "modality": "text", "value": "Which trading style holds positions for months based on macro and fundamental views?" }, "options": [ { "modality": "text", "value": "Swing trading" }, { "modality": "text", "value": "Day trading" }, { "modality": "text", "value": "Position trading" }, { "modality": "text", "value": "Long-term investing" } ], "correctIndex": 2, "explanation": "Position trading holds for months on macro and fundamental views. Day trading is intraday, swing trading spans days to weeks, and long-term investing runs years to decades.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "cuhl8g1jzxj4o" }, { "id": "ot-trading-4", "shape": "mcq", "tags": [ "trading", "rank" ], "prompt": { "modality": "text", "value": "Ordered from shortest to longest holding period, which sequence is correct?" }, "options": [ { "modality": "text", "value": "Position trading, swing trading, day trading" }, { "modality": "text", "value": "Day trading, swing trading, position trading" }, { "modality": "text", "value": "Day trading, position trading, swing trading" }, { "modality": "text", "value": "Swing trading, day trading, position trading" } ], "correctIndex": 1, "explanation": "Horizons lengthen from day trading (one session) to swing trading (days to weeks) to position trading (months). Shorter horizons tilt the odds against the individual.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "6wf1qvbadzq" }, { "id": "ot-cycle-1", "shape": "mcq", "tags": [ "business-cycle", "recall" ], "prompt": { "modality": "text", "value": "How many business cycles has the U.S. economy run through since 1945?" }, "options": [ { "modality": "text", "value": "20" }, { "modality": "text", "value": "6" }, { "modality": "text", "value": "12" }, { "modality": "text", "value": "11" } ], "correctIndex": 2, "explanation": "The U.S. economy has run through 12 business cycles since 1945. 6 is the average cycle length in years and 11 is the number of GICS sectors.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "897lmm9iafpk" }, { "id": "ot-cycle-2", "shape": "mcq", "tags": [ "business-cycle", "recall" ], "prompt": { "modality": "text", "value": "About how long does the average full U.S. business cycle last?" }, "options": [ { "modality": "text", "value": "10 months" }, { "modality": "text", "value": "12 years" }, { "modality": "text", "value": "6 years" }, { "modality": "text", "value": "6 months" } ], "correctIndex": 2, "explanation": "The average full cycle lasts around 6 years. 10 months is the average contraction length, not the full cycle.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1geom41rl1z56" }, { "id": "ot-cycle-3", "shape": "mcq", "tags": [ "business-cycle", "expansion" ], "prompt": { "modality": "text", "value": "On average, how long do U.S. economic expansions last?" }, "options": [ { "modality": "text", "value": "About 2 years" }, { "modality": "text", "value": "About 6 years" }, { "modality": "text", "value": "About 5 years" }, { "modality": "text", "value": "About 10 months" } ], "correctIndex": 2, "explanation": "Expansions average about five years and four months. The much shorter ~10 months is the average contraction, and ~6 years is the full cycle.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "hs2j42usqmkw" }, { "id": "ot-cycle-4", "shape": "mcq", "tags": [ "business-cycle", "contraction" ], "prompt": { "modality": "text", "value": "On average, how long do U.S. economic contractions last?" }, "options": [ { "modality": "text", "value": "About 5 years" }, { "modality": "text", "value": "About 3 years" }, { "modality": "text", "value": "About 6 years" }, { "modality": "text", "value": "About 10 months" } ], "correctIndex": 3, "explanation": "Contractions average a much shorter ten months, versus about five years for expansions. This asymmetry means good times last far longer than bad ones.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "roce85197lsrd" }, { "id": "ot-cycle-5", "shape": "mcq", "tags": [ "business-cycle", "apply" ], "prompt": { "modality": "text", "value": "Expansions average ~5 years while contractions average ~10 months. What does this asymmetry mainly imply for investors?" }, "options": [ { "modality": "text", "value": "Contractions are more frequent than expansions", "short": "Contractions happen more often" }, { "modality": "text", "value": "Downturns erase more wealth than expansions create", "short": "Downturns erase more than upturns add" }, { "modality": "text", "value": "Good times last far longer, so staying invested through downturns pays off", "short": "Upturns last longer; stay invested" }, { "modality": "text", "value": "The cycle is perfectly symmetric year to year", "short": "The cycle is perfectly symmetric" } ], "correctIndex": 2, "explanation": "Because expansions last far longer than contractions, staying invested through downturns tends to pay off. The asymmetry favors patience, not exiting during weakness.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ouz412ml7bd" }, { "id": "ot-gics-1", "shape": "mcq", "tags": [ "gics", "recall" ], "prompt": { "modality": "text", "value": "Into how many sectors does the GICS divide the S&P 500?" }, "options": [ { "modality": "text", "value": "12" }, { "modality": "text", "value": "500" }, { "modality": "text", "value": "11" }, { "modality": "text", "value": "10" } ], "correctIndex": 2, "explanation": "GICS divides the S&P 500 into 11 sectors. 12 is the number of business cycles since 1945, not sectors.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "wnimc21t0dczg" }, { "id": "ot-gics-2", "shape": "mcq", "tags": [ "gics", "definition" ], "prompt": { "modality": "text", "value": "What does the acronym GICS stand for?" }, "options": [ { "modality": "text", "value": "Global Investment Category Standard" }, { "modality": "text", "value": "Global Industry Classification Standard" }, { "modality": "text", "value": "General Index Classification System" }, { "modality": "text", "value": "Grouped Industry Coding Scheme" } ], "correctIndex": 1, "explanation": "GICS is the Global Industry Classification Standard, the system that organizes the S&P 500 into its 11 sectors.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "d19ipfwhz4n3" }, { "id": "ot-gics-3", "shape": "mcq", "tags": [ "gics", "sectors" ], "prompt": { "modality": "text", "value": "Which of the following IS one of the 11 GICS sectors?" }, "options": [ { "modality": "text", "value": "Transportation" }, { "modality": "text", "value": "Real Estate" }, { "modality": "text", "value": "Banking" }, { "modality": "text", "value": "Aerospace & Defense" } ], "correctIndex": 1, "explanation": "Real Estate is one of the 11 GICS sectors. Transportation, banking, and aerospace are not standalone GICS sectors; they fall under Industrials or Financials.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "y39jkipw885w" }, { "id": "ot-gics-4", "shape": "mcq", "tags": [ "gics", "s&p-500" ], "prompt": { "modality": "text", "value": "The GICS framework is used to classify the sectors of which index?" }, "options": [ { "modality": "text", "value": "The Nasdaq 100" }, { "modality": "text", "value": "The S&P 500" }, { "modality": "text", "value": "The Dow Jones Industrial Average" }, { "modality": "text", "value": "The Russell 2000" } ], "correctIndex": 1, "explanation": "GICS organizes the S&P 500 into 11 sectors, providing the structure sector rotation relies on.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1hujoddwo86yz" }, { "id": "ot-rotation-1", "shape": "mcq", "tags": [ "rotation", "early-cycle" ], "prompt": { "modality": "text", "value": "In the early cycle — a sharp recovery with accelerating growth and easy credit — which sectors tend to outperform?" }, "options": [ { "modality": "text", "value": "Energy, materials, and consumer staples" }, { "modality": "text", "value": "Utilities, healthcare, and consumer staples" }, { "modality": "text", "value": "Financials, consumer discretionary, and real estate" }, { "modality": "text", "value": "Technology, industrials, and communication services" } ], "correctIndex": 2, "explanation": "The early cycle rewards financials, consumer discretionary, and real estate. Energy/materials/staples lead late cycle; defensives lead in recession.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1qctldv1qiwvuj" }, { "id": "ot-rotation-2", "shape": "mcq", "tags": [ "rotation", "late-cycle" ], "prompt": { "modality": "text", "value": "The late cycle — slowing growth, rising inflation, tightening credit — tends to reward which sectors?" }, "options": [ { "modality": "text", "value": "Utilities, healthcare, and consumer staples" }, { "modality": "text", "value": "Technology, industrials, and communication services" }, { "modality": "text", "value": "Financials, consumer discretionary, and real estate" }, { "modality": "text", "value": "Energy, materials, and consumer staples" } ], "correctIndex": 3, "explanation": "The late cycle rewards energy, materials, and consumer staples. Financials/discretionary/real estate lead the early cycle and tech/industrials the mid cycle.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "4rturu18zi6fu" }, { "id": "ot-rotation-3", "shape": "mcq", "tags": [ "rotation", "recession" ], "prompt": { "modality": "text", "value": "During a recession, which defensive sectors hold up best?" }, "options": [ { "modality": "text", "value": "Technology, industrials, and communication services" }, { "modality": "text", "value": "Financials, consumer discretionary, and real estate" }, { "modality": "text", "value": "Energy, materials, and consumer staples" }, { "modality": "text", "value": "Utilities, healthcare, and consumer staples" } ], "correctIndex": 3, "explanation": "In recession, defensive utilities, healthcare, and consumer staples hold up best — the things people buy regardless of conditions.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "k4pxrb3i5asx" }, { "id": "ot-rotation-4", "shape": "mcq", "tags": [ "rotation", "interest-rates" ], "prompt": { "modality": "text", "value": "When the Fed pivots to cutting rates in an early recovery, which tend to lead?" }, "options": [ { "modality": "text", "value": "Energy and financials" }, { "modality": "text", "value": "Growth stocks and real estate" }, { "modality": "text", "value": "Utilities and consumer staples" }, { "modality": "text", "value": "Materials and industrials" } ], "correctIndex": 1, "explanation": "Lower rates lift the present value of distant cash flows, so growth stocks and real estate usually lead. Financials and energy instead benefit from rising rates late cycle.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "13ldorc7nccmg" }, { "id": "ot-mag7-origin-1", "shape": "mcq", "tags": [ "origin", "naming" ], "prompt": { "modality": "text", "value": "Who coined the term 'Magnificent Seven' for the mega-cap tech leaders?" }, "options": [ { "modality": "text", "value": "Bank of America strategist Michael Hartnett", "short": "BofA strategist Michael Hartnett" }, { "modality": "text", "value": "Goldman Sachs analyst David Kostin", "short": "Goldman Sachs analyst David Kostin" }, { "modality": "text", "value": "Federal Reserve chair Jerome Powell", "short": "Fed chairman Jerome Powell" }, { "modality": "text", "value": "Berkshire's Warren Buffett", "short": "Berkshire chief Warren Buffett" } ], "correctIndex": 0, "explanation": "The term was coined by Bank of America strategist Michael Hartnett in 2023, borrowing the name of the 1960 Western film.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ti7510ohblr2" }, { "id": "ot-mag7-origin-2", "shape": "mcq", "tags": [ "origin", "year" ], "prompt": { "modality": "text", "value": "In what year was the 'Magnificent Seven' label first coined?" }, "options": [ { "modality": "text", "value": "2025" }, { "modality": "text", "value": "2020" }, { "modality": "text", "value": "2023" }, { "modality": "text", "value": "2021" } ], "correctIndex": 2, "explanation": "Hartnett coined the term in 2023, the year these seven stocks drove a disproportionate share of the S&P 500's gains.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "pug05uo2wkcs" }, { "id": "ot-mag7-origin-3", "shape": "mcq", "tags": [ "scale", "nvidia" ], "prompt": { "modality": "text", "value": "Which Mag 7 company briefly reached a $5 trillion market cap in October 2025?" }, "options": [ { "modality": "text", "value": "Apple Inc." }, { "modality": "text", "value": "Tesla" }, { "modality": "text", "value": "Microsoft" }, { "modality": "text", "value": "Nvidia" } ], "correctIndex": 3, "explanation": "Nvidia briefly hit a $5 trillion market cap in October 2025 after a roughly 1,500% five-year run, becoming the most valuable company in history to that point.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "185ihk61lqwwf6" }, { "id": "ot-mag7-origin-4", "shape": "mcq", "tags": [ "members", "recall" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of the Magnificent Seven?" }, "options": [ { "modality": "text", "value": "Alphabet" }, { "modality": "text", "value": "Meta" }, { "modality": "text", "value": "Tesla Inc." }, { "modality": "text", "value": "Netflix" } ], "correctIndex": 3, "explanation": "The seven are Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla. Netflix is not among them.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "fe6izb7uls2z" }, { "id": "ot-moats-a-1", "shape": "mcq", "tags": [ "moat", "apple" ], "prompt": { "modality": "text", "value": "What does the lesson identify as Apple's competitive moat?" }, "options": [ { "modality": "text", "value": "The Supercharger network", "short": "The Supercharger charging network" }, { "modality": "text", "value": "Ecosystem lock-in and fierce brand loyalty", "short": "Ecosystem lock-in and brand loyalty" }, { "modality": "text", "value": "A search near-monopoly", "short": "A near-monopoly on search" }, { "modality": "text", "value": "The CUDA software ecosystem", "short": "The CUDA software ecosystem" } ], "correctIndex": 1, "explanation": "Apple's moat is ecosystem lock-in and brand loyalty. CUDA is Nvidia's, search is Alphabet's, and Superchargers are Tesla's.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "bamed91w04h6v" }, { "id": "ot-moats-a-2", "shape": "mcq", "tags": [ "moat", "microsoft" ], "prompt": { "modality": "text", "value": "Microsoft's moat rests primarily on what?" }, "options": [ { "modality": "text", "value": "Brand and deep vertical integration", "short": "Brand and vertical integration" }, { "modality": "text", "value": "Social network effects", "short": "Social network effects" }, { "modality": "text", "value": "Deep enterprise switching costs across Azure, Office 365, and Copilot", "short": "Enterprise switching costs" }, { "modality": "text", "value": "An unrivaled logistics network", "short": "An unrivaled logistics network" } ], "correctIndex": 2, "explanation": "Microsoft is protected by deep enterprise switching costs; the metric to watch is Azure cloud growth. Logistics is Amazon's, network effects Meta's, vertical integration Tesla's.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ird2kc15polq8" }, { "id": "ot-moats-a-3", "shape": "mcq", "tags": [ "moat", "amazon" ], "prompt": { "modality": "text", "value": "Amazon combines the scale of AWS with what other advantage?" }, "options": [ { "modality": "text", "value": "The CUDA software ecosystem" }, { "modality": "text", "value": "A Supercharger network" }, { "modality": "text", "value": "An ad-targeting machine" }, { "modality": "text", "value": "An unrivaled logistics network" } ], "correctIndex": 3, "explanation": "Amazon's moat pairs AWS scale with an unrivaled logistics network; AWS operating income is the key metric. The other options belong to Nvidia, Tesla, and Meta.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "38j5urbp9d6" }, { "id": "ot-moats-a-4", "shape": "mcq", "tags": [ "moat", "alphabet" ], "prompt": { "modality": "text", "value": "Alphabet's moat rests on which pair of advantages?" }, "options": [ { "modality": "text", "value": "Ecosystem lock-in and brand loyalty", "short": "Brand loyalty and ecosystem lock-in" }, { "modality": "text", "value": "Enterprise switching costs", "short": "Very deep enterprise switching costs" }, { "modality": "text", "value": "A search near-monopoly and an enormous data advantage", "short": "A search near-monopoly plus data" }, { "modality": "text", "value": "Chip architecture and CUDA", "short": "Chip architecture and CUDA" } ], "correctIndex": 2, "explanation": "Alphabet's moat is a search near-monopoly plus a huge data advantage. Ecosystem lock-in is Apple's, CUDA/chips are Nvidia's, and switching costs are Microsoft's.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1iuqkvmik8kmc" }, { "id": "ot-moats-a-5", "shape": "mcq", "tags": [ "moat", "compare" ], "prompt": { "modality": "text", "value": "Which advantage is NOT part of the moats described for Apple, Microsoft, Amazon, or Alphabet?" }, "options": [ { "modality": "text", "value": "The Supercharger network" }, { "modality": "text", "value": "Enterprise switching costs" }, { "modality": "text", "value": "An unrivaled logistics network" }, { "modality": "text", "value": "Ecosystem lock-in" } ], "correctIndex": 0, "explanation": "The Supercharger network is Tesla's moat, not one of these four. The others belong to Apple, Microsoft, and Amazon respectively.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "clhxhr1vyqmr" }, { "id": "ot-moats-b-1", "shape": "mcq", "tags": [ "moat", "meta" ], "prompt": { "modality": "text", "value": "What does the lesson describe as Meta's competitive moat?" }, "options": [ { "modality": "text", "value": "Network effects of Facebook, Instagram, and WhatsApp plus ad targeting", "short": "Network effects and ad targeting" }, { "modality": "text", "value": "A Supercharger network", "short": "A network of Supercharger stations" }, { "modality": "text", "value": "The CUDA software ecosystem", "short": "The CUDA software ecosystem" }, { "modality": "text", "value": "A search near-monopoly", "short": "A near-monopoly on web search" } ], "correctIndex": 0, "explanation": "Meta's moat is the network effects of its social apps plus its ad-targeting machine; daily active users and ad revenue are the tells. The others are Nvidia's, Tesla's, and Alphabet's.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1mgmrp5xhbnit" }, { "id": "ot-moats-b-2", "shape": "mcq", "tags": [ "moat", "nvidia" ], "prompt": { "modality": "text", "value": "Nvidia's moat is built on what?" }, "options": [ { "modality": "text", "value": "The CUDA software ecosystem and its chip architecture", "short": "CUDA software and chip architecture" }, { "modality": "text", "value": "An unrivaled logistics network", "short": "An unrivaled logistics network" }, { "modality": "text", "value": "Social network effects", "short": "Social media network effects" }, { "modality": "text", "value": "Ecosystem lock-in and brand loyalty", "short": "Brand loyalty plus platform lock-in" } ], "correctIndex": 0, "explanation": "Nvidia's edge is the CUDA ecosystem plus its chip architecture, making it the default platform for AI training. Logistics is Amazon's, lock-in is Apple's, network effects are Meta's.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "16l7wl1ovi5vv" }, { "id": "ot-moats-b-3", "shape": "mcq", "tags": [ "moat", "tesla" ], "prompt": { "modality": "text", "value": "Which combination describes Tesla's moat?" }, "options": [ { "modality": "text", "value": "Enterprise switching costs", "short": "Deep enterprise switching costs" }, { "modality": "text", "value": "Brand, its Supercharger network, and deep vertical integration", "short": "Brand/Superchargers/integration" }, { "modality": "text", "value": "Search monopoly and data advantage", "short": "A search monopoly plus vast data" }, { "modality": "text", "value": "The CUDA ecosystem and chip architecture", "short": "The CUDA ecosystem and chip design" } ], "correctIndex": 1, "explanation": "Tesla leans on brand, the Supercharger network, and vertical integration; deliveries and self-driving attach rate are what investors track. The others belong to Alphabet, Nvidia, and Microsoft.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1nhrvxd10dzkc3" }, { "id": "ot-moats-b-4", "shape": "mcq", "tags": [ "moat", "compare" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of the moats described for Meta, Nvidia, or Tesla?" }, "options": [ { "modality": "text", "value": "Brand, the Supercharger network, and vertical integration" }, { "modality": "text", "value": "Social network effects and an ad-targeting machine" }, { "modality": "text", "value": "A search near-monopoly and an enormous data advantage" }, { "modality": "text", "value": "The CUDA ecosystem and chip architecture" } ], "correctIndex": 2, "explanation": "A search near-monopoly plus a data advantage is Alphabet's moat, not one of these three. The others are Meta's, Nvidia's, and Tesla's moats respectively.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1552rhw10tozxu" }, { "id": "ot-market-conditions-1", "shape": "mcq", "tags": [ "bull-market", "market-phases" ], "prompt": { "modality": "text", "value": "A stock index climbs 25% from its recent low, and investor optimism is running high. Which market condition does this describe?" }, "options": [ { "modality": "text", "value": "Bear market" }, { "modality": "text", "value": "Correction" }, { "modality": "text", "value": "Blue chip" }, { "modality": "text", "value": "Bull market" } ], "correctIndex": 3, "explanation": "A bull market is rising prices and optimism, typically a 20%+ rise from a recent low. A 25% gain clears that threshold; a bear market and correction are declines.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1vldip7192g2wf" }, { "id": "ot-market-conditions-2", "shape": "mcq", "tags": [ "bear-market", "market-phases" ], "prompt": { "modality": "text", "value": "By this lesson's definitions, a bear market begins at what size of decline from a recent high?" }, "options": [ { "modality": "text", "value": "10% or more" }, { "modality": "text", "value": "15% or more" }, { "modality": "text", "value": "20% or more" }, { "modality": "text", "value": "5% or more" } ], "correctIndex": 2, "explanation": "A bear market is a decline of 20% or more from a recent high. A 10–20% drop is only a correction, which is milder and more frequent.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1i50lyo1r4l6fw" }, { "id": "ot-market-conditions-3", "shape": "mcq", "tags": [ "correction", "market-phases" ], "prompt": { "modality": "text", "value": "Which statement about a market correction is NOT accurate?" }, "options": [ { "modality": "text", "value": "It is historically frequent and normal" }, { "modality": "text", "value": "It is usually short-lived" }, { "modality": "text", "value": "It is a 10–20% drop from a recent peak" }, { "modality": "text", "value": "It is steeper than a bear market" } ], "correctIndex": 3, "explanation": "A correction (10–20% drop) is milder than a bear market (20%+ drop), not steeper. The other statements match the lesson's definition of a correction.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1v9f8hk1dwlzh0" }, { "id": "ot-market-conditions-4", "shape": "mcq", "tags": [ "correction", "market-phases" ], "prompt": { "modality": "text", "value": "The S&P 500 falls 15% from its recent high. How is this decline classified?" }, "options": [ { "modality": "text", "value": "A bull market" }, { "modality": "text", "value": "A recovery" }, { "modality": "text", "value": "A correction" }, { "modality": "text", "value": "A bear market" } ], "correctIndex": 2, "explanation": "A 15% decline falls in the 10–20% range, which defines a correction. A bear market requires a drop of 20% or more from the high.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vh6alp15s3s97" }, { "id": "ot-basic-terms-1", "shape": "mcq", "tags": [ "vix", "volatility" ], "prompt": { "modality": "text", "value": "What does the VIX, the market's 'fear gauge,' measure?" }, "options": [ { "modality": "text", "value": "The number of IPOs each year", "short": "The number of new IPOs each year" }, { "modality": "text", "value": "The total market cap of U.S. stocks", "short": "The total market cap of US stocks" }, { "modality": "text", "value": "Expected S&P 500 volatility over the next 30 days", "short": "Expected S&P 500 volatility over 30 days" }, { "modality": "text", "value": "The average dividend yield of the S&P 500", "short": "The average yield of the S&P 500" } ], "correctIndex": 2, "explanation": "The VIX (CBOE Volatility Index) tracks expected S&P 500 volatility over the next 30 days and spikes during stress. The other options describe unrelated market figures.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1a5i1kedwuhc2" }, { "id": "ot-basic-terms-2", "shape": "mcq", "tags": [ "blue-chip", "company-terms" ], "prompt": { "modality": "text", "value": "Which best describes a 'blue chip' stock?" }, "options": [ { "modality": "text", "value": "A company that just completed its IPO", "short": "A company that just went public" }, { "modality": "text", "value": "A heavily shorted, speculative stock", "short": "A shorted speculative stock" }, { "modality": "text", "value": "A large, well-established, financially sound company with a long track record", "short": "A big, established, sound firm" }, { "modality": "text", "value": "A stock with a market cap below $300M", "short": "A firm worth under $300 million" } ], "correctIndex": 2, "explanation": "A blue chip is a large, established, financially sound company with a long track record. A sub-$300M cap is micro-cap, and a fresh IPO lacks the long track record.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "13dhqcp16j5d41" }, { "id": "ot-basic-terms-3", "shape": "mcq", "tags": [ "dividend-yield", "income" ], "prompt": { "modality": "text", "value": "How is a stock's dividend yield calculated?" }, "options": [ { "modality": "text", "value": "Annual dividend per share times shares outstanding", "short": "Yearly dividend times shares outstanding" }, { "modality": "text", "value": "Stock price divided by annual dividend per share", "short": "Share price over yearly dividend" }, { "modality": "text", "value": "Annual dividend per share divided by the stock price", "short": "Yearly dividend per share over price" }, { "modality": "text", "value": "Stock price times shares outstanding", "short": "Share price times share count" } ], "correctIndex": 2, "explanation": "Dividend yield = annual dividend per share ÷ price, giving the income return. Price × shares outstanding is market cap, an unrelated figure.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "lvz9di1pts35y" }, { "id": "ot-basic-terms-4", "shape": "mcq", "tags": [ "ipo", "primary-market" ], "prompt": { "modality": "text", "value": "What does an IPO (Initial Public Offering) represent?" }, "options": [ { "modality": "text", "value": "A company repurchasing its own shares", "short": "A firm buying back its shares" }, { "modality": "text", "value": "A stock's addition to the S&P 500", "short": "A stock joining the S&P 500" }, { "modality": "text", "value": "A company's first dividend payment", "short": "A firm's first dividend payment" }, { "modality": "text", "value": "A private company's first sale of stock to the public", "short": "A firm's first public sale" } ], "correctIndex": 3, "explanation": "An IPO is a private company's first sale of stock to the public, when it begins trading on an exchange. Repurchasing shares is a buyback, a different action.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "bwh6r3eo10jf" }, { "id": "ot-basic-terms-5", "shape": "mcq", "tags": [ "vix", "volatility" ], "prompt": { "modality": "text", "value": "Which statement about volatility and the VIX is NOT correct?" }, "options": [ { "modality": "text", "value": "The VIX is the CBOE Volatility Index", "short": "The VIX is CBOE's volatility index" }, { "modality": "text", "value": "The VIX spikes during market stress", "short": "The VIX spikes during market stress" }, { "modality": "text", "value": "Volatility is a statistical measure of price fluctuation", "short": "Volatility is a measure of price swings" }, { "modality": "text", "value": "The VIX measures a fund's return above its benchmark", "short": "The VIX measures excess return" } ], "correctIndex": 3, "explanation": "Return above a benchmark is alpha, not the VIX. The VIX is the CBOE Volatility Index tracking expected S&P 500 swings, and it spikes under stress.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1lqugdfiiypr1" }, { "id": "ot-advanced-terms-1", "shape": "mcq", "tags": [ "alpha", "performance" ], "prompt": { "modality": "text", "value": "In investing, what does 'alpha' refer to?" }, "options": [ { "modality": "text", "value": "An offsetting position that reduces risk" }, { "modality": "text", "value": "Return above a benchmark" }, { "modality": "text", "value": "A stock's sensitivity to market moves" }, { "modality": "text", "value": "The shares available for public trading" } ], "correctIndex": 1, "explanation": "Alpha is return above a benchmark — the value added beyond matching the market. Sensitivity to the market is beta; shares available to trade is float.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "w12nj35p55q9" }, { "id": "ot-advanced-terms-2", "shape": "mcq", "tags": [ "beta", "risk" ], "prompt": { "modality": "text", "value": "A stock has a beta of 1.5. When the overall market rises 10%, how much does the stock tend to move?" }, "options": [ { "modality": "text", "value": "About 10% up" }, { "modality": "text", "value": "About 1.5% up" }, { "modality": "text", "value": "About 15% up" }, { "modality": "text", "value": "About 5% up" } ], "correctIndex": 2, "explanation": "A beta of 1.5 means the stock tends to move 50% more than the market. A 10% market rise implies roughly a 15% move in the stock.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1mw743w1id44a8" }, { "id": "ot-advanced-terms-3", "shape": "mcq", "tags": [ "float", "shares" ], "prompt": { "modality": "text", "value": "How is a stock's float best defined?" }, "options": [ { "modality": "text", "value": "Total shares minus insider holdings and restricted stock", "short": "The shares not held by insiders" }, { "modality": "text", "value": "Stock price times shares outstanding", "short": "Total share price times share count" }, { "modality": "text", "value": "The total number of shares a company has issued", "short": "All shares the firm has ever issued" }, { "modality": "text", "value": "The shares held only by company insiders", "short": "Only the shares insiders hold" } ], "correctIndex": 0, "explanation": "Float is the shares actually available for public trading: total shares minus insider and restricted holdings. Price × shares outstanding is market cap.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1s9hn3v1b5rzqt" }, { "id": "ot-advanced-terms-4", "shape": "mcq", "tags": [ "short-selling", "risk" ], "prompt": { "modality": "text", "value": "Which statement about short selling is correct?" }, "options": [ { "modality": "text", "value": "It profits from rising prices with strictly limited downside", "short": "Profits on rises; limited risk" }, { "modality": "text", "value": "It profits from falling prices but carries theoretically unlimited downside", "short": "Profits on falls; unlimited risk" }, { "modality": "text", "value": "It has no risk as long as the market is calm", "short": "No risk if markets stay calm" }, { "modality": "text", "value": "It guarantees a dividend while you hold the position", "short": "Guarantees a dividend" } ], "correctIndex": 1, "explanation": "Short selling borrows shares to sell, hoping to rebuy cheaper, so it profits when prices fall — but losses are theoretically unlimited as a price can keep rising.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "rh5eyedu5lp8" }, { "id": "ot-advanced-terms-5", "shape": "mcq", "tags": [ "short-selling", "review" ], "prompt": { "modality": "text", "value": "Which pairing of an advanced term with its meaning is INCORRECT?" }, "options": [ { "modality": "text", "value": "Short selling: buying shares hoping the price rises", "short": "Short selling: buying before a price rise" }, { "modality": "text", "value": "Alpha: return above a benchmark", "short": "Alpha: return above a chosen benchmark" }, { "modality": "text", "value": "Float: shares available for public trading", "short": "Float: shares available for public trading" }, { "modality": "text", "value": "Beta: a stock's sensitivity to market moves", "short": "Beta: sensitivity to broad market moves" } ], "correctIndex": 0, "explanation": "Short selling is borrowing and selling shares hoping the price falls, not buying hoping it rises. The other three pairings are accurate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1chagn19858q3" }, { "id": "ot-risk-tools-1", "shape": "mcq", "tags": [ "hedge", "risk-management" ], "prompt": { "modality": "text", "value": "What is a hedge?" }, "options": [ { "modality": "text", "value": "A company repurchasing its own stock" }, { "modality": "text", "value": "Borrowing shares to sell them short" }, { "modality": "text", "value": "A bet designed to amplify portfolio risk" }, { "modality": "text", "value": "An offsetting position taken to reduce risk" } ], "correctIndex": 3, "explanation": "A hedge is an offsetting position that reduces risk, like buying put options as portfolio insurance. Short selling and buybacks are different mechanics.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "14qqo2y764570" }, { "id": "ot-risk-tools-2", "shape": "mcq", "tags": [ "options", "derivatives" ], "prompt": { "modality": "text", "value": "What does an option contract give its holder?" }, "options": [ { "modality": "text", "value": "A guaranteed dividend payment", "short": "Guaranteed dividend payment" }, { "modality": "text", "value": "The obligation to buy the stock at expiration", "short": "Obligation to buy at expiration" }, { "modality": "text", "value": "The right, but not the obligation, to buy or sell at a set price by a set date", "short": "Right (not duty) to buy or sell" }, { "modality": "text", "value": "Immediate ownership of company shares", "short": "Immediate ownership of shares" } ], "correctIndex": 2, "explanation": "Options give the right, not the obligation, to buy (call) or sell (put) at a set price by a set date. They do not confer share ownership or guaranteed income.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1p0d35np41igv" }, { "id": "ot-risk-tools-3", "shape": "mcq", "tags": [ "buyback", "eps" ], "prompt": { "modality": "text", "value": "What effect does a stock buyback have on earnings per share (EPS)?" }, "options": [ { "modality": "text", "value": "It raises EPS by shrinking the share count", "short": "Raises EPS on fewer shares" }, { "modality": "text", "value": "It lowers EPS by issuing more shares", "short": "Lowers EPS, more shares" }, { "modality": "text", "value": "It has no effect on EPS", "short": "No effect on EPS" }, { "modality": "text", "value": "It doubles the company's dividend", "short": "Doubles the yearly dividend" } ], "correctIndex": 0, "explanation": "A buyback repurchases the company's own stock, reducing the share count so earnings are spread over fewer shares — lifting EPS.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "9jx7c011r0aei" }, { "id": "ot-risk-tools-4", "shape": "mcq", "tags": [ "options", "call-put" ], "prompt": { "modality": "text", "value": "In options terminology, what is a 'call'?" }, "options": [ { "modality": "text", "value": "The right to buy a stock at a set price" }, { "modality": "text", "value": "The right to sell a stock at a set price" }, { "modality": "text", "value": "A repurchase of a company's own stock" }, { "modality": "text", "value": "An obligation to sell shares at expiration" } ], "correctIndex": 0, "explanation": "A call is the right to buy at a set price by a set date; a put is the right to sell. A buyback is a company repurchasing its stock, not an option.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "inc676diakpi" }, { "id": "ot-indexes-1", "shape": "mcq", "tags": [ "sp500", "weighting" ], "prompt": { "modality": "text", "value": "How is the S&P 500 weighted, and how many companies does it track?" }, "options": [ { "modality": "text", "value": "Price-weighted, 30 large companies", "short": "Price-weighted, 30 big firms" }, { "modality": "text", "value": "Market-cap weighted, the 500 largest U.S. public companies", "short": "Cap-weighted, 500 big firms" }, { "modality": "text", "value": "Equal-weighted, 100 tech companies", "short": "Equal-weighted, 100 tech firms" }, { "modality": "text", "value": "Market-cap weighted, 2,000 small-caps", "short": "Cap-weighted, 2,000 small caps" } ], "correctIndex": 1, "explanation": "The S&P 500 is a market-cap-weighted index of the 500 largest U.S. companies. Price-weighted with 30 names is the Dow; 2,000 small-caps is the Russell 2000.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1b424szhm1qyh" }, { "id": "ot-indexes-2", "shape": "mcq", "tags": [ "russell-2000", "small-cap" ], "prompt": { "modality": "text", "value": "The Russell 2000 is the standard benchmark for which segment of the market?" }, "options": [ { "modality": "text", "value": "Large-cap technology companies" }, { "modality": "text", "value": "The 30 largest industrials" }, { "modality": "text", "value": "Small-cap companies" }, { "modality": "text", "value": "High-dividend blue chips" } ], "correctIndex": 2, "explanation": "The Russell 2000 tracks 2,000 small-cap U.S. companies and is the standard small-cap benchmark. The 30 largest industrials describes the Dow.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "138rgb1fv3fl9" }, { "id": "ot-indexes-3", "shape": "mcq", "tags": [ "djia", "weighting" ], "prompt": { "modality": "text", "value": "How many companies make up the Dow Jones Industrial Average, and how is it weighted?" }, "options": [ { "modality": "text", "value": "100 companies, tech-weighted" }, { "modality": "text", "value": "30 companies, price-weighted" }, { "modality": "text", "value": "2,000 companies, market-cap weighted" }, { "modality": "text", "value": "500 companies, market-cap weighted" } ], "correctIndex": 1, "explanation": "The Dow is a price-weighted index of just 30 large companies — the oldest benchmark. Market-cap weighting of 500 companies describes the S&P 500.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1cs25ms1ft393a" }, { "id": "ot-indexes-4", "shape": "mcq", "tags": [ "nasdaq", "indexes" ], "prompt": { "modality": "text", "value": "Which statement about the Nasdaq indexes is NOT correct?" }, "options": [ { "modality": "text", "value": "The Nasdaq 100 holds the 100 largest non-financial Nasdaq firms", "short": "Nasdaq 100: top 100 non-financials" }, { "modality": "text", "value": "The Nasdaq Composite includes all stocks on the Nasdaq", "short": "Composite: all Nasdaq stocks" }, { "modality": "text", "value": "The Nasdaq 100 is the basis for the QQQ ETF", "short": "Nasdaq 100: basis for QQQ ETF" }, { "modality": "text", "value": "The Nasdaq Composite is a price-weighted index of 30 companies", "short": "Composite: 30 price-weighted firms" } ], "correctIndex": 3, "explanation": "A price-weighted index of 30 companies is the Dow, not the Nasdaq Composite, which includes all Nasdaq stocks and is heavily tech-weighted.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "15hyh04tnwr1u" }, { "id": "ot-algo-cbdc-1", "shape": "mcq", "tags": [ "algorithmic-trading", "AI" ], "prompt": { "modality": "text", "value": "Roughly what share of U.S. equity trading is now conducted by algorithmic systems rather than humans?" }, "options": [ { "modality": "text", "value": "About 40%" }, { "modality": "text", "value": "About 55%" }, { "modality": "text", "value": "Nearly 95%" }, { "modality": "text", "value": "Over 70%" } ], "correctIndex": 3, "explanation": "The lesson states over 70% of U.S. equity trading is now done by algorithmic systems, not humans clicking buy and sell.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1y0x2vy180u6k6" }, { "id": "ot-algo-cbdc-2", "shape": "mcq", "tags": [ "CBDC", "digital-currency" ], "prompt": { "modality": "text", "value": "How many countries are exploring central bank digital currencies (CBDCs)?" }, "options": [ { "modality": "text", "value": "Over 70" }, { "modality": "text", "value": "Over 130" }, { "modality": "text", "value": "Over 190" }, { "modality": "text", "value": "Over 30" } ], "correctIndex": 1, "explanation": "Over 130 countries are exploring CBDCs, with China's digital yuan already operational.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "3qfy3512f64mb" }, { "id": "ot-algo-cbdc-3", "shape": "mcq", "tags": [ "algorithmic-trading", "AI" ], "prompt": { "modality": "text", "value": "Per the lesson, the competitive advantage in trading is migrating toward those who do what?" }, "options": [ { "modality": "text", "value": "Execute trades by hand faster than machines" }, { "modality": "text", "value": "Leverage AI and algorithmic tools effectively" }, { "modality": "text", "value": "Rely on a broker to place every order" }, { "modality": "text", "value": "Avoid algorithmic systems entirely" } ], "correctIndex": 1, "explanation": "The lesson says advantage migrates to firms and individuals who understand how to leverage AI/algorithmic tools, rather than competing against them by hand.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "po8tkg12uc53i" }, { "id": "ot-algo-cbdc-4", "shape": "mcq", "tags": [ "CBDC", "FedNow" ], "prompt": { "modality": "text", "value": "What is the U.S. Federal Reserve's FedNow?" }, "options": [ { "modality": "text", "value": "A DeFi lending protocol", "short": "A DeFi protocol for crypto lending" }, { "modality": "text", "value": "An instant-payments system, not a CBDC", "short": "Instant payments; not a CBDC" }, { "modality": "text", "value": "A tokenized real-estate fund", "short": "A tokenized real-estate property fund" }, { "modality": "text", "value": "The official U.S. central bank digital currency", "short": "The official US CBDC" } ], "correctIndex": 1, "explanation": "FedNow is an instant-payments system, not a CBDC. Mistaking it for a U.S. CBDC is a common trap; China's digital yuan is the operational CBDC.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "11df4uajwui98" }, { "id": "ot-defi-1", "shape": "mcq", "tags": [ "DeFi", "definition" ], "prompt": { "modality": "text", "value": "In finance, what does 'DeFi' stand for?" }, "options": [ { "modality": "text", "value": "Decentralized Finance", "short": "Decentralized Finance" }, { "modality": "text", "value": "Digital Fiat", "short": "Digital Fiat Money" }, { "modality": "text", "value": "Deferred Financing", "short": "Deferred Financing" }, { "modality": "text", "value": "Defined Finance", "short": "Defined Finance" } ], "correctIndex": 0, "explanation": "DeFi is short for Decentralized Finance — recreating financial services without traditional intermediaries.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "dz9h2v1tdsgal" }, { "id": "ot-defi-2", "shape": "mcq", "tags": [ "DeFi", "protocols" ], "prompt": { "modality": "text", "value": "Which set of protocols does the lesson cite as examples of DeFi?" }, "options": [ { "modality": "text", "value": "Stablecoins, NFTs, and CBDCs" }, { "modality": "text", "value": "Tokenized real estate, bonds, and commodities" }, { "modality": "text", "value": "Bitcoin, Ethereum, and Litecoin" }, { "modality": "text", "value": "Aave, Uniswap, and Compound" } ], "correctIndex": 3, "explanation": "Aave, Uniswap, and Compound are the DeFi protocols cited. BlackRock/JPMorgan/Goldman are tokenization initiatives; Robinhood/Fidelity are retail brokers.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ntn1augv89k6" }, { "id": "ot-defi-3", "shape": "mcq", "tags": [ "DeFi", "intermediaries" ], "prompt": { "modality": "text", "value": "DeFi recreates lending, borrowing, and trading without which of the following?" }, "options": [ { "modality": "text", "value": "Traditional intermediaries like banks", "short": "Banks and other middlemen" }, { "modality": "text", "value": "Public blockchains", "short": "Public blockchains and networks" }, { "modality": "text", "value": "The internet", "short": "The internet and its rails" }, { "modality": "text", "value": "Any form of collateral", "short": "Any form of posted collateral" } ], "correctIndex": 0, "explanation": "DeFi removes traditional intermediaries like banks, but it still relies on public blockchains and internet access to function.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "13iewjt19r3gb3" }, { "id": "ot-defi-4", "shape": "mcq", "tags": [ "DeFi", "smart-contracts" ], "prompt": { "modality": "text", "value": "What technology do DeFi services use to recreate financial functions?" }, "options": [ { "modality": "text", "value": "Central bank ledgers", "short": "Central-bank ledger systems" }, { "modality": "text", "value": "Blockchain-based smart contracts", "short": "Smart contracts on blockchains" }, { "modality": "text", "value": "Private bank mainframes", "short": "Private bank mainframes" }, { "modality": "text", "value": "Government CBDC networks", "short": "Government-issued CBDC networks" } ], "correctIndex": 1, "explanation": "DeFi uses blockchain-based smart contracts running transparently on public blockchains to recreate lending, borrowing, and trading.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "176v355fgf2p" }, { "id": "ot-defi-5", "shape": "mcq", "tags": [ "DeFi", "characteristics" ], "prompt": { "modality": "text", "value": "Which statement about DeFi is NOT accurate per the lesson?" }, "options": [ { "modality": "text", "value": "It requires a bank to approve each loan" }, { "modality": "text", "value": "It removes traditional intermediaries" }, { "modality": "text", "value": "It runs transparently on public blockchains" }, { "modality": "text", "value": "It enables lending and borrowing" } ], "correctIndex": 0, "explanation": "DeFi's defining feature is operating WITHOUT traditional intermediaries — no bank approves transactions; smart contracts do.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "xrbpcz15w5rad" }, { "id": "ot-esg-1", "shape": "mcq", "tags": [ "ESG", "definition" ], "prompt": { "modality": "text", "value": "In ESG investing, what do the letters E, S, and G stand for?" }, "options": [ { "modality": "text", "value": "Environmental, Social, and Governance" }, { "modality": "text", "value": "Equity, Savings, and Growth" }, { "modality": "text", "value": "Earnings, Stability, and Gains" }, { "modality": "text", "value": "Economic, Structural, and Global" } ], "correctIndex": 0, "explanation": "ESG stands for Environmental, Social, and Governance — non-financial factors evaluated alongside financial performance.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1t5tnklnmfoht" }, { "id": "ot-esg-2", "shape": "mcq", "tags": [ "ESG", "alpha" ], "prompt": { "modality": "text", "value": "Per the lesson, what about ESG investing do critics still debate?" }, "options": [ { "modality": "text", "value": "Whether it consistently generates alpha (outperformance)", "short": "Whether it reliably beats the market" }, { "modality": "text", "value": "Whether it can ever include bonds", "short": "Whether it can ever include bonds" }, { "modality": "text", "value": "Whether it is legal in most countries", "short": "Whether it is legal most places" }, { "modality": "text", "value": "Whether governments require it by law", "short": "Whether the law requires it" } ], "correctIndex": 0, "explanation": "The lesson notes ESG grew to mainstream with trillions in assets, even as critics debate whether it consistently generates alpha. It is not illegal or legally mandated.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "2h7g2w19j3ura" }, { "id": "ot-esg-3", "shape": "mcq", "tags": [ "ESG", "concept" ], "prompt": { "modality": "text", "value": "ESG investing evaluates companies on which factors alongside financial performance?" }, "options": [ { "modality": "text", "value": "Non-financial environmental, social, and governance factors", "short": "Environmental, social and governance" }, { "modality": "text", "value": "Short-term price momentum", "short": "Price momentum, short window" }, { "modality": "text", "value": "Only quarterly earnings", "short": "Only quarterly earnings numbers" }, { "modality": "text", "value": "Dividend yield alone", "short": "Dividend yield and nothing else" } ], "correctIndex": 0, "explanation": "ESG evaluates companies on non-financial factors — environmental, social, and governance — in addition to financial performance.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "jpm2zz1pnxacf" }, { "id": "ot-esg-4", "shape": "mcq", "tags": [ "ESG", "factors" ], "prompt": { "modality": "text", "value": "Which of the following is NOT one of the three ESG factors?" }, "options": [ { "modality": "text", "value": "Social" }, { "modality": "text", "value": "Profitability" }, { "modality": "text", "value": "Governance" }, { "modality": "text", "value": "Environmental" } ], "correctIndex": 1, "explanation": "The three ESG factors are Environmental, Social, and Governance. Profitability is a financial metric, considered separately alongside ESG.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "45dcb71ex1mt9" }, { "id": "ot-esg-5", "shape": "mcq", "tags": [ "ESG", "growth" ], "prompt": { "modality": "text", "value": "How has ESG investing evolved, according to the lesson?" }, "options": [ { "modality": "text", "value": "It replaced all financial analysis", "short": "Replaced all financial analysis" }, { "modality": "text", "value": "It was banned by most regulators", "short": "Banned by most regulators" }, { "modality": "text", "value": "From a niche movement to a mainstream benchmark with trillions in assets", "short": "Niche → mainstream benchmark" }, { "modality": "text", "value": "From mainstream to nearly obscure", "short": "Mainstream → now nearly obscure" } ], "correctIndex": 2, "explanation": "ESG grew from niche to mainstream, with trillions in assets under ESG mandates, though critics debate whether it consistently generates alpha.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ve9z1k1yzetuu" }, { "id": "ot-pyramid-1", "shape": "mcq", "tags": [ "portfolio-pyramid", "index-funds" ], "prompt": { "modality": "text", "value": "The base of the portfolio pyramid makes up 60–70% of holdings. What belongs at that base?" }, "options": [ { "modality": "text", "value": "High-quality individual stocks with moats", "short": "Quality stocks with durable moats" }, { "modality": "text", "value": "Growth stocks and crypto speculation", "short": "Growth stocks and crypto wagers" }, { "modality": "text", "value": "Total-market and S&P 500 index funds", "short": "Total-market and S&P 500 funds" }, { "modality": "text", "value": "Long-dated Treasury bonds", "short": "Long-dated US Treasury bonds" } ], "correctIndex": 2, "explanation": "The 60–70% base is index funds — total-market, S&P 500, and international — the bedrock of wealth creation. Individual quality stocks are the middle; speculation is the narrow top.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "16d97yde976wz" }, { "id": "ot-pyramid-2", "shape": "mcq", "tags": [ "portfolio-pyramid", "stocks" ], "prompt": { "modality": "text", "value": "The middle layer of the pyramid (20–30%) consists of what?" }, "options": [ { "modality": "text", "value": "Individual high-quality stocks with moats and strong cash flow", "short": "Quality stocks with moats" }, { "modality": "text", "value": "Cash and money-market funds", "short": "Cash and money-market funds" }, { "modality": "text", "value": "Crypto and sector bets", "short": "Crypto and sector bets" }, { "modality": "text", "value": "Total-market index funds", "short": "Total-market index funds only" } ], "correctIndex": 0, "explanation": "The 20–30% middle is individual high-quality stocks with identifiable moats, strong free cash flow, and reasonable valuations. Index funds are the base; crypto and sector bets are the speculative top.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "acihliiijdgy" }, { "id": "ot-pyramid-3", "shape": "mcq", "tags": [ "portfolio-pyramid", "allocation" ], "prompt": { "modality": "text", "value": "Roughly what share of the portfolio does the pyramid reserve for the speculative top layer?" }, "options": [ { "modality": "text", "value": "5–10%" }, { "modality": "text", "value": "60–70%" }, { "modality": "text", "value": "40–50%" }, { "modality": "text", "value": "20–30%" } ], "correctIndex": 0, "explanation": "The narrow top is just 5–10% — growth stocks, crypto, and speculation limited to what you can afford to lose entirely. 20–30% is the middle and 60–70% is the base.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "sfutna2k6b5g" }, { "id": "ot-pyramid-4", "shape": "mcq", "tags": [ "portfolio-pyramid", "speculation" ], "prompt": { "modality": "text", "value": "Which of these does NOT belong in the pyramid's speculative top layer?" }, "options": [ { "modality": "text", "value": "Crypto", "short": "Crypto and digital tokens" }, { "modality": "text", "value": "Total-market index funds", "short": "Total-market index funds" }, { "modality": "text", "value": "Growth stocks", "short": "Fast-growing growth stocks" }, { "modality": "text", "value": "Sector bets", "short": "Concentrated single-sector bets" } ], "correctIndex": 1, "explanation": "Index funds form the stable 60–70% base, not the top. The 5–10% top is higher-risk positions — growth stocks, crypto, and sector bets you can afford to lose.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "oc14bxrdq9nx" }, { "id": "ot-tax-1", "shape": "mcq", "tags": [ "roth-ira", "tax-treatment" ], "prompt": { "modality": "text", "value": "Which account is funded with post-tax dollars but offers completely tax-free growth and qualified withdrawals?" }, "options": [ { "modality": "text", "value": "Taxable brokerage account" }, { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "Traditional IRA" }, { "modality": "text", "value": "401(k)" } ], "correctIndex": 1, "explanation": "The Roth IRA flips the timing: contributions are post-tax, but all growth and qualified withdrawals are tax-free. The 401(k) and Traditional IRA are pre-tax with taxable withdrawals.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1iai7d640ln7s" }, { "id": "ot-tax-2", "shape": "mcq", "tags": [ "401k", "tax-treatment" ], "prompt": { "modality": "text", "value": "How are 401(k) contributions and withdrawals taxed?" }, "options": [ { "modality": "text", "value": "Contributions are post-tax; withdrawals are tax-free", "short": "Post-tax in; tax-free withdrawal" }, { "modality": "text", "value": "Both contributions and withdrawals are tax-free", "short": "Tax-free both in and out" }, { "modality": "text", "value": "Both are taxed at the moment of contribution", "short": "Both taxed when contributed" }, { "modality": "text", "value": "Contributions are pre-tax; withdrawals are taxed in retirement", "short": "Pre-tax in; taxed at withdrawal" } ], "correctIndex": 3, "explanation": "A 401(k) is pre-tax: contributions reduce taxable income now, and withdrawals are taxed in retirement. Post-tax contributions with tax-free withdrawals describe the Roth, not the 401(k).", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1g10v211hgcs8d" }, { "id": "ot-tax-3", "shape": "mcq", "tags": [ "hsa", "tax-treatment" ], "prompt": { "modality": "text", "value": "Which account offers a triple tax advantage — pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses?" }, "options": [ { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "401(k)" }, { "modality": "text", "value": "Traditional IRA" }, { "modality": "text", "value": "HSA" } ], "correctIndex": 3, "explanation": "The HSA is uniquely triple-tax-advantaged and can double as a stealth retirement account. The Roth has only two of those (post-tax in, tax-free out); the 401(k) and Traditional IRA are taxed on withdrawal.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1fkq0g01mvoupu" }, { "id": "ot-tax-4", "shape": "mcq", "tags": [ "roth-ira", "traditional-ira" ], "prompt": { "modality": "text", "value": "How does a Roth IRA's tax timing differ from a Traditional IRA's?" }, "options": [ { "modality": "text", "value": "Roth is pre-tax now; Traditional is post-tax now", "short": "Roth pre-tax now; Trad post-tax now" }, { "modality": "text", "value": "Both are pre-tax now and taxed in retirement", "short": "Both pre-tax now, taxed later" }, { "modality": "text", "value": "Both are post-tax now and tax-free later", "short": "Both post-tax now, free later" }, { "modality": "text", "value": "Roth is post-tax now and tax-free later; Traditional is pre-tax now and taxed later", "short": "Roth post-tax now; Trad pre-tax now" } ], "correctIndex": 3, "explanation": "The Roth uses post-tax dollars but grows and pays out tax-free; the Traditional IRA is pre-tax now with taxable withdrawals in retirement. The two accounts invert each other's timing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1urkm9vpkb45z" }, { "id": "ot-tax-5", "shape": "mcq", "tags": [ "tax-treatment", "misconception" ], "prompt": { "modality": "text", "value": "Which statement about these accounts' tax treatment is FALSE?" }, "options": [ { "modality": "text", "value": "An HSA allows tax-free withdrawals for medical expenses" }, { "modality": "text", "value": "A 401(k) lowers your taxable income the year you contribute" }, { "modality": "text", "value": "A Traditional IRA's withdrawals are taxed in retirement" }, { "modality": "text", "value": "A Roth IRA's qualified withdrawals are taxed in retirement" } ], "correctIndex": 3, "explanation": "False: Roth withdrawals are tax-free, not taxed. The other three are accurate — the 401(k) reduces taxable income now, the HSA covers medical costs tax-free, and Traditional IRA withdrawals are taxed later.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1bmguok15maire" }, { "id": "ot-compound-1", "shape": "mcq", "tags": [ "compounding", "example" ], "prompt": { "modality": "text", "value": "$10,000 invested at age 25 at a 10% return, with no further contributions, grows to roughly what by age 65?" }, "options": [ { "modality": "text", "value": "About $3,500,000" }, { "modality": "text", "value": "About $45,300" }, { "modality": "text", "value": "About $453,000" }, { "modality": "text", "value": "About $106,000" } ], "correctIndex": 2, "explanation": "Left alone at 10% for 40 years, $10,000 compounds to roughly $453,000. Adding $500/month would push it past $3.5 million; $106,000 is the unrelated 1957 S&P example.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ngj040qkwgem" }, { "id": "ot-compound-2", "shape": "mcq", "tags": [ "compounding", "contributions" ], "prompt": { "modality": "text", "value": "In the same $10,000 example, adding $500 a month throughout raises the age-65 value to more than what?" }, "options": [ { "modality": "text", "value": "$453,000" }, { "modality": "text", "value": "$1 million" }, { "modality": "text", "value": "$10 million" }, { "modality": "text", "value": "$3.5 million" } ], "correctIndex": 3, "explanation": "Contributing $500 a month on top of the initial $10,000 pushes the ending value above $3.5 million by age 65 — $453,000 is the no-contribution result.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "11px8wm1pjpxyu" }, { "id": "ot-compound-3", "shape": "mcq", "tags": [ "sp500", "returns" ], "prompt": { "modality": "text", "value": "What is the S&P 500's approximate annualized return since 1928, including dividends?" }, "options": [ { "modality": "text", "value": "About 6.5%" }, { "modality": "text", "value": "About 12.4%" }, { "modality": "text", "value": "About 15%" }, { "modality": "text", "value": "About 9.92%" } ], "correctIndex": 3, "explanation": "The S&P 500 has returned roughly 9.92% annualized since 1928 with dividends included — the historical basis for the compounding examples in this lesson.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ww2ijc8xrq1" }, { "id": "ot-compound-4", "shape": "mcq", "tags": [ "compounding", "discipline" ], "prompt": { "modality": "text", "value": "Which statement best captures the lesson's core principle about compounding?" }, "options": [ { "modality": "text", "value": "Time, not timing, is the decisive variable", "short": "Time beats timing, always" }, { "modality": "text", "value": "Timing the market beats time in the market", "short": "Timing matters more than time" }, { "modality": "text", "value": "Frequent trading maximizes compound growth", "short": "Frequent trading maximizes growth" }, { "modality": "text", "value": "Starting late matters less than adding more money", "short": "Adding money beats starting early" } ], "correctIndex": 0, "explanation": "The lesson stresses that time in the market — not trying to time it — drives compounding, and waiting is a young investor's costliest mistake.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1kbkq1w10l25cc" }, { "id": "ot-recall-history-1", "shape": "mcq", "tags": [ "history", "nyse", "buttonwood" ], "prompt": { "modality": "text", "value": "In what year was the Buttonwood Agreement signed, marking the birth of the NYSE?" }, "options": [ { "modality": "text", "value": "1929" }, { "modality": "text", "value": "1971" }, { "modality": "text", "value": "1934" }, { "modality": "text", "value": "1792" } ], "correctIndex": 3, "explanation": "The Buttonwood Agreement of 1792 — twenty-four brokers under a sycamore tree on Wall Street — marks the birth of the NYSE. 1934 is the SEC; 1971 is Nasdaq.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "c4ph2q4kdwxs" }, { "id": "ot-recall-history-2", "shape": "mcq", "tags": [ "history", "nasdaq", "electronic" ], "prompt": { "modality": "text", "value": "Which market, founded in 1971, was the world's first fully electronic stock market?" }, "options": [ { "modality": "text", "value": "The SEC" }, { "modality": "text", "value": "The Buttonwood Exchange" }, { "modality": "text", "value": "NYSE" }, { "modality": "text", "value": "Nasdaq" } ], "correctIndex": 3, "explanation": "The Nasdaq, founded in 1971, was the world's first fully electronic stock market. The NYSE began with the 1792 Buttonwood Agreement; the SEC is a regulator, not a market.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "p3rt0v1ksg24t" }, { "id": "ot-recall-history-3", "shape": "mcq", "tags": [ "history", "sec", "regulation" ], "prompt": { "modality": "text", "value": "The SEC was created in 1934 in the wake of which event?" }, "options": [ { "modality": "text", "value": "The signing of the Buttonwood Agreement" }, { "modality": "text", "value": "The 1929 stock market crash" }, { "modality": "text", "value": "The dot-com bubble" }, { "modality": "text", "value": "The founding of the Nasdaq exchange" } ], "correctIndex": 1, "explanation": "The SEC was created in 1934 after the 1929 crash to protect investors and police disclosure. Buttonwood (1792) and Nasdaq (1971) are unrelated to its founding.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "n6km3t1kdce1p" }, { "id": "ot-recall-history-4", "shape": "mcq", "tags": [ "history", "milestones" ], "prompt": { "modality": "text", "value": "Which founding-milestone pairing is INCORRECT?" }, "options": [ { "modality": "text", "value": "Nasdaq — first electronic market, 1971" }, { "modality": "text", "value": "SEC — created in 1792" }, { "modality": "text", "value": "Buttonwood Agreement — 1792, birth of the NYSE" }, { "modality": "text", "value": "SEC — created in 1934 after the 1929 crash" } ], "correctIndex": 1, "explanation": "The SEC was created in 1934, not 1792. 1792 belongs to the Buttonwood Agreement and the birth of the NYSE. The other three pairings are all correct.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1vbelcq84sdia" }, { "id": "ot-recall-history-5", "shape": "mcq", "tags": [ "history", "buttonwood", "nyse" ], "prompt": { "modality": "text", "value": "The Buttonwood Agreement is associated with the birth of which institution?" }, "options": [ { "modality": "text", "value": "The Nasdaq" }, { "modality": "text", "value": "The Federal Reserve" }, { "modality": "text", "value": "The SEC" }, { "modality": "text", "value": "The NYSE" } ], "correctIndex": 3, "explanation": "The 1792 Buttonwood Agreement marks the birth of the NYSE. The Nasdaq was founded in 1971 and the SEC in 1934 — neither traces to Buttonwood.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ndwt3r1asgpfd" }, { "id": "ot-recall-math-1", "shape": "mcq", "tags": [ "rule-of-72", "compounding" ], "prompt": { "modality": "text", "value": "The Rule of 72 estimates the years to double your money by dividing 72 by what?" }, "options": [ { "modality": "text", "value": "Your annual rate of return" }, { "modality": "text", "value": "The number of shares you own" }, { "modality": "text", "value": "The current inflation rate" }, { "modality": "text", "value": "Your total invested amount" } ], "correctIndex": 0, "explanation": "The Rule of 72 divides 72 by your annual return to estimate doubling time — the fastest mental shortcut for the power of compounding.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "v1xkwiwddtrm" }, { "id": "ot-recall-math-2", "shape": "mcq", "tags": [ "margin-of-safety", "value" ], "prompt": { "modality": "text", "value": "The margin of safety is best described as which discipline?" }, "options": [ { "modality": "text", "value": "Selling as soon as a stock doubles" }, { "modality": "text", "value": "Investing a fixed amount each month" }, { "modality": "text", "value": "Holding only the largest stocks" }, { "modality": "text", "value": "Buying well below intrinsic value" } ], "correctIndex": 3, "explanation": "The margin of safety means buying well below intrinsic value, so even a wrong estimate still profits. Investing a fixed amount at intervals is dollar-cost averaging.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "fkw8wt1oxwvt1" }, { "id": "ot-recall-math-3", "shape": "mcq", "tags": [ "free-cash-flow", "valuation" ], "prompt": { "modality": "text", "value": "How is free cash flow defined?" }, "options": [ { "modality": "text", "value": "Revenue minus cost of goods sold" }, { "modality": "text", "value": "Net income plus dividends paid" }, { "modality": "text", "value": "Operating cash flow minus capital expenditures" }, { "modality": "text", "value": "Stock price divided by earnings per share" } ], "correctIndex": 2, "explanation": "Free cash flow is operating cash flow minus capital expenditures — the real cash a business throws off after sustaining itself. Price ÷ EPS is the P/E ratio.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1f8yp913xmxzz" }, { "id": "ot-recall-math-4", "shape": "mcq", "tags": [ "rule-of-72", "compounding" ], "prompt": { "modality": "text", "value": "Using the Rule of 72, about how long does it take to double your money at a 6% annual return?" }, "options": [ { "modality": "text", "value": "About 12 years" }, { "modality": "text", "value": "About 8 years" }, { "modality": "text", "value": "About 6 years" }, { "modality": "text", "value": "About 18 years" } ], "correctIndex": 0, "explanation": "72 ÷ 6 = 12 years. The Rule of 72 divides 72 by the annual return to estimate doubling time.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ke3jez1jqvkht" }, { "id": "ot-recall-strategy-1", "shape": "mcq", "tags": [ "dca", "strategy" ], "prompt": { "modality": "text", "value": "Dollar-cost averaging is the practice of doing what?" }, "options": [ { "modality": "text", "value": "Concentrating all your money into one stock", "short": "Putting all money in one stock" }, { "modality": "text", "value": "Buying only when a stock hits a new low", "short": "Buying only at new lows" }, { "modality": "text", "value": "Investing a fixed amount at regular intervals regardless of price", "short": "Fixed sum at regular intervals" }, { "modality": "text", "value": "Selling whenever the market drops", "short": "Selling whenever markets drop" } ], "correctIndex": 2, "explanation": "Dollar-cost averaging invests a fixed amount at regular intervals regardless of price — the simplest behavioral safeguard against trying to time the market.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "7hi8sc16nzxpi" }, { "id": "ot-recall-strategy-2", "shape": "mcq", "tags": [ "magnificent-seven", "mega-cap" ], "prompt": { "modality": "text", "value": "Which company is NOT one of the Magnificent Seven?" }, "options": [ { "modality": "text", "value": "Apple" }, { "modality": "text", "value": "Tesla" }, { "modality": "text", "value": "Nvidia" }, { "modality": "text", "value": "Netflix" } ], "correctIndex": 3, "explanation": "The Magnificent Seven are Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla. Netflix is not among them.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1qcczwliz37h7" }, { "id": "ot-recall-strategy-3", "shape": "mcq", "tags": [ "roth-ira", "tax" ], "prompt": { "modality": "text", "value": "What is the standout tax advantage of a Roth IRA?" }, "options": [ { "modality": "text", "value": "Unlimited yearly contributions" }, { "modality": "text", "value": "Immunity from all market losses" }, { "modality": "text", "value": "A guaranteed annual return" }, { "modality": "text", "value": "Tax-free growth and tax-free withdrawals" } ], "correctIndex": 3, "explanation": "The Roth IRA offers tax-free growth and tax-free withdrawals, making it a standout wealth vehicle. It does not guarantee returns or prevent losses.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "y58gpk1g0e95q" }, { "id": "ot-recall-strategy-4", "shape": "mcq", "tags": [ "moat", "competitive-advantage" ], "prompt": { "modality": "text", "value": "An economic moat refers to what?" }, "options": [ { "modality": "text", "value": "A fixed dividend payment" }, { "modality": "text", "value": "A government regulation on trading" }, { "modality": "text", "value": "A short-term price spike" }, { "modality": "text", "value": "A durable competitive advantage" } ], "correctIndex": 3, "explanation": "An economic moat is the durable competitive advantage — pricing power, switching costs, network effects — that lets the best companies compound for decades.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1y45zpyymeu3a" }, { "id": "ot-recall-strategy-5", "shape": "mcq", "tags": [ "dca", "moat", "roth-ira" ], "prompt": { "modality": "text", "value": "Which pairing is INCORRECT?" }, "options": [ { "modality": "text", "value": "Dollar-cost averaging — a durable competitive advantage" }, { "modality": "text", "value": "Roth IRA — tax-free growth and withdrawals" }, { "modality": "text", "value": "Magnificent Seven — Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, Tesla" }, { "modality": "text", "value": "Economic moat — pricing power, switching costs, network effects" } ], "correctIndex": 0, "explanation": "Dollar-cost averaging means investing a fixed amount at regular intervals; the durable competitive advantage is the economic moat. The other three pairings are correct.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "20mfwl1ugl5ah" }, { "id": "ot-recall-value-1", "shape": "mcq", "tags": [ "pe-ratio", "valuation" ], "prompt": { "modality": "text", "value": "How is the P/E ratio calculated?" }, "options": [ { "modality": "text", "value": "72 divided by the annual return" }, { "modality": "text", "value": "Earnings per share divided by stock price" }, { "modality": "text", "value": "Stock price divided by earnings per share" }, { "modality": "text", "value": "Operating cash flow minus capital expenditures" } ], "correctIndex": 2, "explanation": "The P/E ratio is stock price divided by earnings per share. Operating cash flow minus capex is free cash flow; 72 ÷ return is the Rule of 72.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ct5m1au1e2lq" }, { "id": "ot-recall-value-2", "shape": "mcq", "tags": [ "buffett", "berkshire" ], "prompt": { "modality": "text", "value": "Which company did Warren Buffett famously lead as CEO for decades?" }, "options": [ { "modality": "text", "value": "Berkshire Hathaway" }, { "modality": "text", "value": "Vanguard" }, { "modality": "text", "value": "Fidelity" }, { "modality": "text", "value": "JPMorgan Chase" } ], "correctIndex": 0, "explanation": "Warren Buffett led Berkshire Hathaway as CEO for decades before Greg Abel became CEO on January 1, 2026. Buffett was a student of Benjamin Graham, the father of value investing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1g4hg1e1qf3jlc" }, { "id": "ot-recall-value-3", "shape": "mcq", "tags": [ "buffett", "graham" ], "prompt": { "modality": "text", "value": "Warren Buffett was famously the student of which investor?" }, "options": [ { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Charlie Munger" }, { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "John Bogle" } ], "correctIndex": 0, "explanation": "Warren Buffett was Graham's student before running Berkshire Hathaway. Munger was his business partner, not his teacher.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ahjx9l19tan1" }, { "id": "ot-recall-value-4", "shape": "mcq", "tags": [ "pe-ratio", "buffett" ], "prompt": { "modality": "text", "value": "Which statement about the P/E ratio and Warren Buffett is INCORRECT?" }, "options": [ { "modality": "text", "value": "Warren Buffett was a student of Graham", "short": "Buffett was a student of Graham" }, { "modality": "text", "value": "The P/E ratio equals earnings per share divided by stock price", "short": "P/E = earnings per share ÷ price" }, { "modality": "text", "value": "Warren Buffett is chairman of Berkshire Hathaway", "short": "Buffett is Berkshire's chairman" }, { "modality": "text", "value": "The P/E ratio equals stock price divided by earnings per share", "short": "P/E = price ÷ earnings per share" } ], "correctIndex": 1, "explanation": "The P/E ratio is price divided by EPS, not the reverse. The other three statements are all correct.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "7tklm217d0mt4" }, { "id": "ot-recall-value-5", "shape": "mcq", "tags": [ "pe-ratio", "apply" ], "prompt": { "modality": "text", "value": "A stock trades at $50 with earnings per share of $5. What is its P/E ratio?" }, "options": [ { "modality": "text", "value": "250" }, { "modality": "text", "value": "45" }, { "modality": "text", "value": "5" }, { "modality": "text", "value": "10" } ], "correctIndex": 3, "explanation": "P/E = price ÷ EPS = $50 ÷ $5 = 10. A P/E of 10 means investors pay $10 for each $1 of annual earnings.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "jsj6c8nltw90" }, { "id": "ot-value-legends-1", "shape": "mcq", "tags": [ "graham", "value-investing" ], "prompt": { "modality": "text", "value": "Which investor, a Columbia professor, originated the 'margin of safety' and 'Mr. Market' ideas and wrote 'The Intelligent Investor'?" }, "options": [ { "modality": "text", "value": "John Bogle" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Charlie Munger" }, { "modality": "text", "value": "Warren Buffett" } ], "correctIndex": 1, "explanation": "Graham made stock analysis a discipline; his 'margin of safety' and 'Mr. Market' concepts and 'The Intelligent Investor' are the founding texts of value investing.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1sea9pi1a6wr6" }, { "id": "ot-value-legends-2", "shape": "mcq", "tags": [ "buffett", "berkshire" ], "prompt": { "modality": "text", "value": "Which legendary investor turned Berkshire Hathaway, a dying textile mill, into a conglomerate funded by insurance 'float'?" }, "options": [ { "modality": "text", "value": "Warren Buffett" }, { "modality": "text", "value": "Ray Dalio" }, { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "Benjamin Graham" } ], "correctIndex": 0, "explanation": "Buffett, Graham's student, built Berkshire Hathaway into a conglomerate funded cleverly by insurance float, evolving from cigar-butt bargains to wonderful businesses.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "12gr1c4cdjy08" }, { "id": "ot-value-legends-3", "shape": "mcq", "tags": [ "munger", "inversion" ], "prompt": { "modality": "text", "value": "Charlie Munger championed a 'latticework of mental models' and solved problems through which technique?" }, "options": [ { "modality": "text", "value": "Margin of safety pricing", "short": "Margin of safety pricing" }, { "modality": "text", "value": "Betting on disruptive innovation", "short": "Betting on disruption" }, { "modality": "text", "value": "Indexing to cut costs", "short": "Indexing to cut costs" }, { "modality": "text", "value": "Inversion — asking how to fail, then avoiding it", "short": "Inverting: avoid ways to fail" } ], "correctIndex": 3, "explanation": "Munger solved problems by inversion — figuring out how to fail and avoiding it — and insisted avoiding stupidity beats seeking brilliance.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "q2gxjc1ak0vh2" }, { "id": "ot-value-legends-4", "shape": "mcq", "tags": [ "value-investing", "compare" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of the founders of value investing described in the lesson?" }, "options": [ { "modality": "text", "value": "Charlie Munger" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Warren Buffett" }, { "modality": "text", "value": "John Bogle" } ], "correctIndex": 3, "explanation": "Graham, Buffett, and Munger are the value-investing legends. Bogle took the opposite tack — founding Vanguard and the first index fund rather than picking undervalued stocks.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1vqnaa9wcg479" }, { "id": "ot-value-legends-5", "shape": "mcq", "tags": [ "munger", "buffett" ], "prompt": { "modality": "text", "value": "Which investor pushed his partner toward 'quality over cheapness,' favoring wonderful businesses over merely cheap ones?" }, "options": [ { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "George Soros, macro trader" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Charlie Munger" } ], "correctIndex": 3, "explanation": "Munger, Buffett's partner and intellectual foil, pushed him from cigar-butt bargains toward buying quality businesses — quality over cheapness.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "16nopbdk11tgl" }, { "id": "ot-index-lynch-1", "shape": "mcq", "tags": [ "bogle", "index-fund" ], "prompt": { "modality": "text", "value": "Who founded Vanguard and launched the first index fund for ordinary investors?" }, "options": [ { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "John Bogle" }, { "modality": "text", "value": "Warren Buffett" }, { "modality": "text", "value": "Cathie Wood" } ], "correctIndex": 1, "explanation": "Bogle founded Vanguard and launched the first index fund, built on the insight that costs are the one thing you can control. He was nicknamed 'Saint Jack.'", "source": { "label": "Investing 201 — Objective Test" }, "uid": "qwbq6s19twnbu" }, { "id": "ot-index-lynch-2", "shape": "mcq", "tags": [ "lynch", "magellan" ], "prompt": { "modality": "text", "value": "Which investor ran Fidelity's Magellan Fund (1977–1990) and preached 'invest in what you know' and chasing 'tenbaggers'?" }, "options": [ { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Ray Dalio" }, { "modality": "text", "value": "John Bogle, Vanguard" } ], "correctIndex": 0, "explanation": "Lynch ran Magellan from 1977 to 1990, advised investing in what you know, and let a few tenbaggers (tenfold winners) carry the portfolio.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "15t1vr81oi47lk" }, { "id": "ot-index-lynch-3", "shape": "mcq", "tags": [ "bogle", "costs" ], "prompt": { "modality": "text", "value": "Bogle's approach to markets rested on the insight that which single factor is the one thing an investor can control?" }, "options": [ { "modality": "text", "value": "Market timing" }, { "modality": "text", "value": "Corporate earnings" }, { "modality": "text", "value": "Costs" }, { "modality": "text", "value": "Interest rates" } ], "correctIndex": 2, "explanation": "Bogle argued that costs are the one thing you can control and that low fees compound into enormous differences over a lifetime.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1kev70k1lldy" }, { "id": "ot-index-lynch-4", "shape": "mcq", "tags": [ "lynch", "tenbagger" ], "prompt": { "modality": "text", "value": "A 'tenbagger,' the kind of winner Peter Lynch prized, refers to a stock that does what?" }, "options": [ { "modality": "text", "value": "Trades at a P/E ratio of ten", "short": "Trades at ten times profit" }, { "modality": "text", "value": "Is held for ten years", "short": "Is held for ten full years" }, { "modality": "text", "value": "Returns ten times the original investment", "short": "Returns ten times your money" }, { "modality": "text", "value": "Pays a 10% dividend yield", "short": "Pays a ten percent yield" } ], "correctIndex": 2, "explanation": "Lynch used 'tenbagger' for a tenfold winner — a stock that returns ten times its cost — letting a few carry the whole portfolio.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1lpakw7147lmmn" }, { "id": "ot-index-lynch-5", "shape": "mcq", "tags": [ "bogle", "lynch", "compare" ], "prompt": { "modality": "text", "value": "Which pairing correctly matches the investor to his signature contribution?" }, "options": [ { "modality": "text", "value": "Bogle — index funds; Lynch — stock-picking" }, { "modality": "text", "value": "Bogle — macro bets; Lynch — indexing" }, { "modality": "text", "value": "Bogle — hedge funds; Lynch — value investing" }, { "modality": "text", "value": "Bogle — stock-picking; Lynch — index funds" } ], "correctIndex": 0, "explanation": "Bogle proved beating the market is hard and built low-cost index funds; Lynch showed active stock-picking can shine in the right hands at Magellan.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "hat5il1cwdq9v" }, { "id": "ot-macro-legends-1", "shape": "mcq", "tags": [ "dalio", "bridgewater" ], "prompt": { "modality": "text", "value": "Who built Bridgewater Associates into the world's largest hedge fund and ran it on 'radical transparency'?" }, "options": [ { "modality": "text", "value": "Charlie Munger" }, { "modality": "text", "value": "George Soros" }, { "modality": "text", "value": "Cathie Wood" }, { "modality": "text", "value": "Ray Dalio" } ], "correctIndex": 3, "explanation": "Dalio built Bridgewater from his apartment into the largest hedge fund, famous for radical transparency, recorded meetings, and peer ratings; he wrote 'Principles.'", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vfe3wtnoyzpx" }, { "id": "ot-macro-legends-2", "shape": "mcq", "tags": [ "wood", "ark", "innovation" ], "prompt": { "modality": "text", "value": "Cathie Wood founded ARK Invest in 2014 around a single thesis centered on what?" }, "options": [ { "modality": "text", "value": "Margin of safety" }, { "modality": "text", "value": "Currency devaluation" }, { "modality": "text", "value": "Low-cost indexing" }, { "modality": "text", "value": "Disruptive innovation" } ], "correctIndex": 3, "explanation": "Wood built ARK Invest around disruptive innovation — EVs, genomics, AI, digital assets — making her a lightning rod in the growth-versus-value debate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "k2gg301w58074" }, { "id": "ot-macro-legends-3", "shape": "mcq", "tags": [ "soros", "wood", "compare" ], "prompt": { "modality": "text", "value": "Which pairing correctly matches the investor to his or her signature approach?" }, "options": [ { "modality": "text", "value": "Soros — disruptive innovation; Wood — macro currency bets" }, { "modality": "text", "value": "Soros — insurance float; Wood — cigar-butt bargains" }, { "modality": "text", "value": "Soros — low-cost indexing; Wood — value investing" }, { "modality": "text", "value": "Soros — macro currency bets; Wood — disruptive innovation" } ], "correctIndex": 3, "explanation": "Soros made his name on macro bets against currencies (the 1992 pound); Wood built ARK around disruptive innovation. The other pairings swap or misassign their approaches.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "xyy98onf01fe" }, { "id": "ot-macro-legends-4", "shape": "mcq", "tags": [ "macro-growth", "compare" ], "prompt": { "modality": "text", "value": "Which of these investors is NOT one of the macro and growth investors covered in this lesson?" }, "options": [ { "modality": "text", "value": "George Soros" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Cathie Wood" }, { "modality": "text", "value": "Ray Dalio" } ], "correctIndex": 1, "explanation": "Dalio (macro hedge fund), Soros (macro currency bets), and Wood (growth/innovation) are the macro-and-growth legends. Graham is a founder of value investing, not a macro or growth investor.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1wfhkkm5evuw" }, { "id": "ot-people-buffett", "shape": "mcq", "tags": [ "buffett", "people" ], "prompt": { "modality": "text", "value": "Which investor, nicknamed the 'Oracle of Omaha,' turned a failing New England textile mill into a sprawling conglomerate?" }, "options": [ { "modality": "text", "value": "Charlie Munger" }, { "modality": "text", "value": "George Soros" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Warren Buffett" } ], "correctIndex": 3, "explanation": "Buffett, the 'Oracle of Omaha,' built Berkshire Hathaway from a failing textile mill into a conglomerate of insurers, a railroad, and consumer brands, and writes a famous yearly shareholder letter.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1gtwojmuxcg1k" }, { "id": "ot-people-graham", "shape": "mcq", "tags": [ "graham", "value-investing" ], "prompt": { "modality": "text", "value": "Which Columbia professor, called the father of value investing, taught the 'margin of safety' and wrote 'The Intelligent Investor'?" }, "options": [ { "modality": "text", "value": "John Bogle" }, { "modality": "text", "value": "Benjamin Graham" }, { "modality": "text", "value": "Peter Lynch" }, { "modality": "text", "value": "Ray Dalio" } ], "correctIndex": 1, "explanation": "Graham pioneered disciplined stock analysis, the 'margin of safety,' and the Mr. Market parable. His books 'Security Analysis' and 'The Intelligent Investor' are foundational value-investing texts.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vvf8tla2ed81" }, { "id": "ot-people-soros", "shape": "mcq", "tags": [ "soros", "macro" ], "prompt": { "modality": "text", "value": "Which macro investor, dubbed 'the man who broke the Bank of England,' reportedly earned about $1 billion in a day betting a currency would be devalued?" }, "options": [ { "modality": "text", "value": "Ray Dalio" }, { "modality": "text", "value": "Cathie Wood, ARK Invest" }, { "modality": "text", "value": "Charlie Munger" }, { "modality": "text", "value": "George Soros" } ], "correctIndex": 3, "explanation": "In 1992 Soros's fund reportedly earned about a billion dollars in a single day betting the pound would be devalued, earning him the 'man who broke the Bank of England' nickname.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "f1bjsdcujghz" }, { "id": "ot-people-pairing", "shape": "mcq", "tags": [ "people", "firms" ], "prompt": { "modality": "text", "value": "Which investor-to-firm pairing is NOT correct?" }, "options": [ { "modality": "text", "value": "Cathie Wood — ARK Invest" }, { "modality": "text", "value": "Ray Dalio — Bridgewater Associates" }, { "modality": "text", "value": "John Bogle — Fidelity" }, { "modality": "text", "value": "Peter Lynch — Fidelity's Magellan Fund" } ], "correctIndex": 2, "explanation": "Bogle founded Vanguard, not Fidelity. Lynch ran Fidelity's Magellan Fund, Dalio founded Bridgewater, and Wood runs ARK Invest — those pairings are correct.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "uf0mgshnt4jk" }, { "id": "ot-instr-bond", "shape": "mcq", "tags": [ "bond", "instruments" ], "prompt": { "modality": "text", "value": "Which instrument represents a loan made by an investor, on which the issuer pays a fixed interest rate over its life?" }, "options": [ { "modality": "text", "value": "REIT" }, { "modality": "text", "value": "Dividend" }, { "modality": "text", "value": "Bond" }, { "modality": "text", "value": "Stock" } ], "correctIndex": 2, "explanation": "A bond is a fixed-income investment representing a loan; issuers pay a fixed interest rate. U.S. Treasury bonds are considered nearly risk-free. A stock represents ownership, not a loan.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "14r7j6y1hoqy9c" }, { "id": "ot-instr-reit", "shape": "mcq", "tags": [ "reit", "real-estate" ], "prompt": { "modality": "text", "value": "Which instrument owns or finances income-generating real estate and is required by law to distribute a significant portion of its income as dividends?" }, "options": [ { "modality": "text", "value": "IPO" }, { "modality": "text", "value": "REIT" }, { "modality": "text", "value": "Bond" }, { "modality": "text", "value": "Stock" } ], "correctIndex": 1, "explanation": "A REIT owns, operates, or finances income-generating real estate and must distribute much of its income as dividends. Investors buy shares of these trusts on stock exchanges.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "jwbvky1sv4e38" }, { "id": "ot-instr-moat", "shape": "mcq", "tags": [ "moat", "value-concepts" ], "prompt": { "modality": "text", "value": "A company protected by strong brand loyalty and cost advantages that guard its market position best exemplifies which concept?" }, "options": [ { "modality": "text", "value": "Dividend" }, { "modality": "text", "value": "Margin of Safety" }, { "modality": "text", "value": "IPO" }, { "modality": "text", "value": "Economic Moat" } ], "correctIndex": 3, "explanation": "An economic moat is a competitive advantage protecting a company's market position, arising from factors like brand loyalty or cost advantages. Buffett emphasizes it for long-term success.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "12qjoguzyf0mg" }, { "id": "ot-events-1929", "shape": "mcq", "tags": [ "1929", "events" ], "prompt": { "modality": "text", "value": "Which event marked the beginning of the Great Depression, with the Dow falling nearly 25% over just two days in late October?" }, "options": [ { "modality": "text", "value": "The Dot-Com Bubble Burst" }, { "modality": "text", "value": "The 2008 Financial Crisis" }, { "modality": "text", "value": "Black Monday, 1987" }, { "modality": "text", "value": "The Crash of 1929" } ], "correctIndex": 3, "explanation": "The Crash of 1929 began the Great Depression; the Dow fell nearly 25% in two days in late October. Black Monday's 22.6% drop was a single session, and 2008 unfolded over months.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1yg42h61mnyvbe" }, { "id": "ot-events-dotcom", "shape": "mcq", "tags": [ "dot-com", "nasdaq" ], "prompt": { "modality": "text", "value": "During which event did the Nasdaq lose nearly 80% of its value between March 2000 and late 2002?" }, "options": [ { "modality": "text", "value": "The 2008 Financial Crisis" }, { "modality": "text", "value": "Black Monday, 1987" }, { "modality": "text", "value": "The Dot-Com Bubble Burst" }, { "modality": "text", "value": "The COVID-19 Crash" } ], "correctIndex": 2, "explanation": "The Dot-Com Bubble Burst saw the Nasdaq lose nearly 80% from March 2000 to late 2002, driven by overinvestment in internet firms with unsustainable business models.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "i0l83hopitbz" }, { "id": "ot-events-2008", "shape": "mcq", "tags": [ "2008", "housing" ], "prompt": { "modality": "text", "value": "Which crisis was triggered by the collapse of the housing market and led to the largest bankruptcy in U.S. history?" }, "options": [ { "modality": "text", "value": "The Dot-Com Bubble Burst" }, { "modality": "text", "value": "The COVID-19 Crash" }, { "modality": "text", "value": "The Crash of 1929" }, { "modality": "text", "value": "The 2008 Financial Crisis" } ], "correctIndex": 3, "explanation": "The 2008 Financial Crisis stemmed from the housing collapse and risky mortgages, caused the largest U.S. bankruptcy, and saw the Dow fall over 50% from its peak, prompting major regulatory changes.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1mrzn1xa4m1h3" }, { "id": "ot-early-exchanges-buttonwood-details", "shape": "mcq", "tags": [ "buttonwood", "nyse" ], "prompt": { "modality": "text", "value": "Which statement about the Buttonwood Agreement is NOT true?" }, "options": [ { "modality": "text", "value": "Twenty-four brokers and merchants signed it outside 68 Wall Street", "short": "24 signers, outside 68 Wall St" }, { "modality": "text", "value": "The signers pledged a fixed commission of 0.25%", "short": "Pledged fixed 0.25% commission" }, { "modality": "text", "value": "The group formalized in 1817 as the New York Stock & Exchange Board", "short": "NY Stock Exchange Board (1817)" }, { "modality": "text", "value": "The brokers signed it under an oak tree at 40 Wall Street", "short": "Signed under an oak tree, 40 Wall St" } ], "correctIndex": 3, "explanation": "It was signed under a buttonwood (sycamore) tree outside 68 Wall Street; 40 Wall Street is where the group rented rooms in 1817. The other three statements are accurate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1hmamhh8bxd0l" }, { "id": "ot-nasdaq-firsts-not-true", "shape": "mcq", "tags": [ "nasdaq", "ipo", "firsts" ], "prompt": { "modality": "text", "value": "Which statement about the Nasdaq is NOT true?" }, "options": [ { "modality": "text", "value": "Apple, Microsoft, and Nvidia list primarily on it", "short": "Apple, Microsoft, Nvidia list on it" }, { "modality": "text", "value": "By 1975 it listed venture-backed companies that could not meet the NYSE's requirements", "short": "1975: listed firms NYSE would reject" }, { "modality": "text", "value": "Skeptical floor traders nicknamed its system the 'black box'", "short": "Traders nicknamed it 'black box'" }, { "modality": "text", "value": "The NYSE beat it to market by offering online trading first", "short": "NYSE offered online trading first" } ], "correctIndex": 3, "explanation": "The Nasdaq itself was the first U.S. exchange to offer online trading, in 1998 — the NYSE did not beat it. The other three statements are accurate.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1jyqiespbjl3w" }, { "id": "ot-dotcom-composite", "shape": "mcq", "tags": [ "dotcom", "nasdaq-composite" ], "prompt": { "modality": "text", "value": "What is the Nasdaq Composite, the index at the center of the dot-com collapse?" }, "options": [ { "modality": "text", "value": "A benchmark of 500 large-cap U.S. companies across all exchanges", "short": "500 large-cap U.S. companies" }, { "modality": "text", "value": "An index of the 30 largest U.S. industrial companies", "short": "The 30 largest U.S. industrials" }, { "modality": "text", "value": "A broad measure of the stocks listed on the Nasdaq", "short": "All stocks listed on the Nasdaq" }, { "modality": "text", "value": "A live feed of bid/ask quotes from Nasdaq market makers", "short": "Live bid/ask quotes feed" } ], "correctIndex": 2, "explanation": "The Nasdaq Composite is a broad measure of Nasdaq-listed stocks. The 30-industrials description is the Dow and the 500 large-caps is the S&P 500.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "vq827k1y9l6k0" }, { "id": "ot-crashes-covid-recovery", "shape": "mcq", "tags": [ "covid", "recovery" ], "prompt": { "modality": "text", "value": "After the 2020 bottom, how quickly did the S&P 500 reach new all-time highs?" }, "options": [ { "modality": "text", "value": "Within 25 years" }, { "modality": "text", "value": "Within a decade" }, { "modality": "text", "value": "Within five months" }, { "modality": "text", "value": "Within two years" } ], "correctIndex": 2, "explanation": "Monetary and fiscal stimulus drove a recovery so swift the S&P 500 hit new all-time highs within five months of the bottom. The 25-year figure belongs to the 1929 crash.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1o4j7m91j7af59" }, { "id": "ot-buffett-5", "shape": "mcq", "tags": [ "buffett", "evolution", "apply" ], "prompt": { "modality": "text", "value": "Which purchase best reflects Buffett's LATER philosophy rather than his early approach?" }, "options": [ { "modality": "text", "value": "A failing business trading at a deep discount to book value" }, { "modality": "text", "value": "A dominant, high-quality business bought at a fair price" }, { "modality": "text", "value": "A mediocre business bought far below its net asset value" }, { "modality": "text", "value": "A high-quality business, available only at a deep bargain price" } ], "correctIndex": 1, "explanation": "The mature Buffett prefers a wonderful company at a fair price. Buying below net asset value, or holding out for a deep bargain regardless of quality, describes his earlier Graham-style bargain hunting.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "15s3u7316pcixp" }, { "id": "ot-roic-5", "shape": "mcq", "tags": [ "roic", "apply" ], "prompt": { "modality": "text", "value": "A company reports NOPAT of $30M on $150M of invested capital. What is its ROIC?" }, "options": [ { "modality": "text", "value": "45%" }, { "modality": "text", "value": "5%" }, { "modality": "text", "value": "20%" }, { "modality": "text", "value": "12%" } ], "correctIndex": 2, "explanation": "ROIC = NOPAT / invested capital = $30M / $150M = 20%. Dividing the other way ($150M into $30M) or mixing in unrelated figures produces the wrong ratios.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "dhmx3w1ea34k2" }, { "id": "ot-roic-6", "shape": "mcq", "tags": [ "roic", "compare" ], "prompt": { "modality": "text", "value": "Which pairing of business type and typical ROIC range matches the guide?" }, "options": [ { "modality": "text", "value": "Commodity businesses: 15–30%" }, { "modality": "text", "value": "Capital-light software: 30–100%+" }, { "modality": "text", "value": "Capital-light software: 5–10%" }, { "modality": "text", "value": "Commodity businesses: 30–100%+" } ], "correctIndex": 1, "explanation": "Capital-light software businesses can post ROICs of 30–100%+, while commodity businesses scrape by at 5–10% — the two ranges are reversed in the other options.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "7nh4941glbt9g" }, { "id": "ot-tv-5", "shape": "mcq", "tags": [ "terminal-value", "apply" ], "prompt": { "modality": "text", "value": "A DCF projects free cash flows explicitly for 8 years. Where is the company's year-12 cash flow captured?" }, "options": [ { "modality": "text", "value": "It is excluded from the model entirely" }, { "modality": "text", "value": "In the net debt subtraction" }, { "modality": "text", "value": "In the terminal value" }, { "modality": "text", "value": "In the year-8 free cash flow figure" } ], "correctIndex": 2, "explanation": "Terminal value covers everything beyond the explicit projection window, so a year-12 cash flow sits inside it — not dropped, and not folded into the final projected year.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1rplvzv18bw3vr" }, { "id": "ot-choose-4", "shape": "mcq", "tags": [ "metric-choice", "which-not" ], "prompt": { "modality": "text", "value": "Which metric-to-situation pairing does the guide NOT endorse?" }, "options": [ { "modality": "text", "value": "Profitable, mature company, broad comparisons → P/E" }, { "modality": "text", "value": "Pre-profitable high-growth company → P/E" }, { "modality": "text", "value": "Judging a growth stock's premium → PEG" }, { "modality": "text", "value": "Merger or leveraged buyout → EV/EBITDA" } ], "correctIndex": 1, "explanation": "For a high-growth company that isn't yet profitable, P/E breaks down entirely — there are no earnings to divide by — so P/S becomes the standard. The other three pairings are the guide's own.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1n5rd7rxxkczj" }, { "id": "ot-r72low-5", "shape": "mcq", "tags": [ "rule-of-72", "low-rates", "not" ], "prompt": { "modality": "text", "value": "At savings-like rates, which pairing is NOT correct under the Rule of 72?" }, "options": [ { "modality": "text", "value": "3.5% → about 20 years" }, { "modality": "text", "value": "2% → 36 years" }, { "modality": "text", "value": "2% → 18 years" }, { "modality": "text", "value": "4% → 18 years" } ], "correctIndex": 2, "explanation": "72 ÷ 2 = 36 years, not 18. The 18-year doubling belongs to a 4% bond-like return (72 ÷ 4).", "source": { "label": "Investing 201 — Objective Test" }, "uid": "iw7erx1vg71h3" }, { "id": "ot-instr-not-correct", "shape": "mcq", "tags": [ "instruments", "dividend" ], "prompt": { "modality": "text", "value": "Which statement about these investing instruments is NOT correct?" }, "options": [ { "modality": "text", "value": "A stock is a financial instrument representing ownership in a company", "short": "Stock = ownership in a company" }, { "modality": "text", "value": "An IPO is a private company offering shares to the public for the first time", "short": "IPO = first public share sale" }, { "modality": "text", "value": "A dividend is a loan an investor makes to a company", "short": "Dividend = a loan to a company" }, { "modality": "text", "value": "U.S. Treasury bonds are considered nearly risk-free", "short": "Treasuries = nearly risk-free" } ], "correctIndex": 2, "explanation": "A dividend is a portion of a company's earnings paid out to shareholders, often quarterly — not a loan. A bond is the loan instrument. The other three statements match the guide.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "r1m461hk0lud" }, { "id": "ot-events-pairing", "shape": "mcq", "tags": [ "regulation", "events" ], "prompt": { "modality": "text", "value": "Which event-to-fact pairing is NOT correct?" }, "options": [ { "modality": "text", "value": "The Glass-Steagall Act — largely repealed in 1999", "short": "Glass-Steagall — largely repealed in 1999" }, { "modality": "text", "value": "The COVID-19 Crash — the fastest bear market in history", "short": "COVID-19 Crash — fastest bear market in history" }, { "modality": "text", "value": "Black Monday, 1987 — blamed on automated trading systems", "short": "Black Monday 1987 — blamed on automated trading" }, { "modality": "text", "value": "The SEC Formation — separated commercial from investment banking", "short": "SEC formation — split commercial/investment banking" } ], "correctIndex": 3, "explanation": "The SEC, created June 6, 1934 after the 1929 crash, is a securities regulator; it was Glass-Steagall that separated commercial and investment banking. The other three pairings match the guide.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ls4uc51hpcz37" }, { "id": "ot-acct-1", "shape": "mcq", "tags": [ "accounts", "401k", "employer-sponsored" ], "prompt": { "modality": "text", "value": "Among the four tax-advantaged accounts in this lesson, which one is employer-sponsored rather than opened by an individual saver?" }, "options": [ { "modality": "text", "value": "A Roth IRA" }, { "modality": "text", "value": "A 401(k)" }, { "modality": "text", "value": "A Traditional IRA" }, { "modality": "text", "value": "An HSA" } ], "correctIndex": 1, "explanation": "The guide describes the 401(k) as an employer-sponsored retirement account. The Traditional IRA and Roth IRA are individual accounts and the HSA is opened by the individual — only the 401(k) comes through an employer.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "8gnhnq1ap3al4" }, { "id": "ot-acct-2", "shape": "mcq", "tags": [ "accounts", "traditional-ira", "eligibility" ], "prompt": { "modality": "text", "value": "The lesson calls which account 'the individual equivalent' of the employer-sponsored 401(k)?" }, "options": [ { "modality": "text", "value": "HSA" }, { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "Traditional IRA" }, { "modality": "text", "value": "Taxable brokerage account" } ], "correctIndex": 2, "explanation": "The guide states the Traditional IRA is the individual equivalent of the 401(k). The Roth IRA flips the timing, the HSA is for medical expenses, and a brokerage account carries no tax advantage.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "tbg7n115tc8qb" }, { "id": "ot-acct-3", "shape": "mcq", "tags": [ "accounts", "roth-ira", "purpose" ], "prompt": { "modality": "text", "value": "Which account does the lesson call, for most investors, the single most powerful long-term wealth vehicle?" }, "options": [ { "modality": "text", "value": "HSA" }, { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "401(k) plan" }, { "modality": "text", "value": "Traditional IRA" } ], "correctIndex": 1, "explanation": "The guide names the Roth IRA the single most powerful long-term wealth vehicle for most investors, because decades of compounding accrue entirely to the saver.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1tsjxzt176fuv" }, { "id": "ot-acct-4", "shape": "mcq", "tags": [ "accounts", "hsa", "purpose" ], "prompt": { "modality": "text", "value": "Which account is meant for medical expenses and can quietly double as a 'stealth retirement account'?" }, "options": [ { "modality": "text", "value": "HSA" }, { "modality": "text", "value": "401(k)" }, { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "Traditional IRA" } ], "correctIndex": 0, "explanation": "The guide describes the Health Savings Account as tied to medical expenses that can double as a stealth retirement account. The 401(k) and IRAs are retirement accounts with no medical-spending purpose.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "14wzlmf16nrhut" }, { "id": "ot-acct-5", "shape": "mcq", "tags": [ "accounts", "401k", "who-offers" ], "prompt": { "modality": "text", "value": "Priya's retirement account is set up and sponsored through her workplace. Which type of account does she have?" }, "options": [ { "modality": "text", "value": "A Traditional IRA" }, { "modality": "text", "value": "A Roth IRA" }, { "modality": "text", "value": "A 401(k)" }, { "modality": "text", "value": "An HSA" } ], "correctIndex": 2, "explanation": "An account sponsored through a workplace is a 401(k), which the guide defines as employer-sponsored. 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"uid": "yh227d1n8detb" }, { "id": "fi-mcq-rw-l1-p2-nasdaq", "tags": [ "nasdaq", "dot-com", "market-history" ], "title": "Nasdaq's dot-com plunge", "body": "After peaking in March 2000, the Nasdaq Composite lost nearly 80% of its value over the next two and a half years as the dot-com bubble burst.", "shape": "fact", "illustration": { "imageSearchTerm": "Nasdaq Times Square tower", "imagePrompt": "The Nasdaq MarketSite tower in Times Square at night, its curved glass facade wrapped in a giant illuminated display.", "alt": "Nasdaq's dot-com plunge", "depictable": true, "credit": "Wikimedia Commons · CC BY-SA 4.0", "creditUrl": "https://commons.wikimedia.org/wiki/File:Times_Square_Nasdaq_Closing_Bell_Ceremony_2013_Berenberg.JPG", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-mcq-rw-l1-p2-nasdaq.webp" }, "uid": "1igx1dehc2eeg" }, { "id": "fi-ot-nasdaq-acronym", "tags": [ "nasdaq", "acronym" ], "title": "What NASDAQ stands for", "body": "NASDAQ is an acronym for the 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"https://commons.wikimedia.org/wiki/File:Rose,_Golden_Handshake,_%E3%83%90%E3%83%A9,_%E3%82%B4%E3%83%BC%E3%83%AB%E3%83%87%E3%83%B3_%E3%83%8F%E3%83%B3%E3%83%89%E3%82%B7%E3%82%A7%E3%82%A4%E3%82%AF,_(13025164845).jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-bonds-1.webp" }, "uid": "1q0ac7rb8mv75" }, { "id": "fi-ot-bonds-3", "tags": [ "treasury", "bonds" ], "title": "The Safest Rung", "body": "U.S. Treasury bonds are backed by the full faith and credit of the U.S. government, making them the safest rung of the bond risk ladder and considered nearly risk-free.", "shape": "fact", "illustration": { "imageSearchTerm": "US Treasury building facade", "imagePrompt": "The grand neoclassical facade of the U.S. Department of the Treasury building, its stone columns rising above a quiet Washington street.", "alt": "The Safest Rung", "depictable": true, "credit": "Wikimedia Commons — America Treasury Department Building 20240601.jpg · See Wikimedia Commons (per-file)", 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"https://cdn.recurxive.com/packs/investing-201/images/fi-ot-bonds-4.webp" }, "uid": "wp5eyj1sl1pj5" }, { "id": "fi-ot-bonds-5", "tags": [ "municipal-bonds", "bonds" ], "title": "Cities And States Borrow", "body": "Municipal bonds are issued by cities and states and often come with tax advantages, distinguishing them from federally issued Treasuries and company-issued corporate bonds.", "shape": "fact", "illustration": { "imageSearchTerm": "city hall municipal building", "imagePrompt": "A grand stone city hall building facade with wide steps and tall columns, framed by a clear afternoon sky.", "alt": "Cities And States Borrow", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Strada_Independen%C8%9Bei,_Subscriptions.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-bonds-5.webp" }, "uid": "14c6hmvznprr5" }, { "id": "fi-ot-mrmkt-1", "tags": [ "mr-market", "graham" ], "title": "Meet Mr. Market", 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"https://cdn.recurxive.com/packs/investing-201/images/fi-ot-prof-4.webp" }, "uid": "s2wxr9179q6y7" }, { "id": "fi-ot-prof-5", "tags": [ "profitability", "gross-margin", "pricing-power" ], "title": "What Margins Reveal", "body": "A high, stable gross margin is the clearest signal of pricing power: the ability to charge well above what it costs to produce the product.", "shape": "fact", "illustration": { "imageSearchTerm": "premium product pedestal spotlight", "imagePrompt": "A single premium product displayed alone on a pedestal under dramatic spotlighting in an otherwise dark room.", "alt": "What Margins Reveal", "depictable": false, "credit": "Pexels · Artem Podrez · Pexels License", "creditUrl": "https://www.pexels.com/photo/person-holding-white-printer-paper-6801196/", "subject": "A real photograph of a hand in a white sleeve placing a plain gray hardcover book on a small white tray atop a white cube pedestal, warm beige studio background — a product being presented carefully on an 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"1ey7d1y19k2676" }, { "id": "fi-ot-liq-1", "tags": [ "liquidity", "current-ratio" ], "title": "A Quick Liquidity Check", "body": "The current ratio is calculated as current assets divided by current liabilities, a quick gauge of whether a company can cover its near-term obligations.", "shape": "fact", "illustration": { "imageSearchTerm": "water level gauge tank", "imagePrompt": "A cylindrical water tank with a visible level gauge on its side, showing how full it currently is.", "alt": "A Quick Liquidity Check", "depictable": false, "credit": "Pexels · Close-up of a rusty water level gauge with moss, set against an industrial port backdrop.", "creditUrl": "https://www.pexels.com/photo/rusty-water-gauge-at-industrial-port-37303457/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-liq-1.webp" }, "uid": "vymzcn6715t9" }, { "id": "fi-ot-liq-3", "tags": [ "leverage", "debt-to-equity" ], "title": "Debt Versus Owners' Capital", "body": "The debt-to-equity ratio divides 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"illustration": { "imageSearchTerm": "mechanical engine factory floor", "imagePrompt": "A polished mechanical engine at the center of a factory floor, gears turning steadily as it powers everything around it.", "alt": "The Core Cash Engine", "depictable": false, "credit": "Unsplash · Georg Eiermann · Unsplash License", "creditUrl": "https://unsplash.com/photos/vintage-industrial-steam-engine-with-a-large-red-flywheel-P7BFeTSiO5s", "subject": "A restored vintage steam engine, red-painted bed with a brass cylinder, pressure gauge and a large red flywheel, displayed behind a railing in a brick-walled building", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-cf-1.webp" }, "uid": "112km541uwhzd4" }, { "id": "fi-ot-cf-2", "tags": [ "cash-flow", "investing" ], "title": "Usually Negative, On Purpose", "body": "Investing cash flow covers capital expenditures, acquisitions, and investments — usually negative for growing firms investing in their own expansion.", "shape": "fact", "illustration": { "imageSearchTerm": "construction cranes building skyscraper", "imagePrompt": "Multiple construction cranes assembling the steel framework of a new skyscraper against a city skyline at dusk.", "alt": "Usually Negative, On Purpose", "depictable": true, "credit": "Pexels · Low angle view of skyscraper under construction with cranes against blue sky.", "creditUrl": "https://www.pexels.com/photo/crane-working-near-modern-building-18078304/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-cf-2.webp" }, "uid": "1k4xcoah34vc4" }, { "id": "fi-ot-cf-3", "tags": [ "cash-flow", "financing" ], "title": "Dealing With Capital Providers", "body": "Financing cash flow captures how a company deals with capital providers: issuing or repaying debt, buying back shares, and paying dividends — distinct from capex or acquisitions.", "shape": "fact", "illustration": { "imageSearchTerm": "reception desk greeting visitors", "imagePrompt": "A busy hotel-style 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"https://cdn.recurxive.com/packs/investing-201/images/fi-ot-tvm-4.webp" }, "uid": "agizxi1cye5oo" }, { "id": "fi-ot-wacc-2", "tags": [ "wacc", "range" ], "title": "The Typical Discount Range", "body": "WACC typically falls around 8–12% for established U.S. companies — not to be confused with the much lower 2–3% perpetual growth rate used elsewhere in a DCF model.", "shape": "fact", "illustration": { "imageSearchTerm": "gauge needle middle range", "imagePrompt": "A dial with a needle resting steadily within a highlighted middle band, neither at the low end nor the high end.", "alt": "The Typical Discount Range", "depictable": false, "credit": "AI-generated (gpt-image-1.5)", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-wacc-2.webp" }, "uid": "10xddlamuvh5w" }, { "id": "fi-ot-def-1", "tags": [ "p-e", "definitions" ], "title": "Paying For Profit", "body": "The P/E ratio divides a stock's price by its earnings per share, showing how much investors are paying for each dollar of the company's annual profit.", "shape": "fact", "illustration": { "imageSearchTerm": "coin vending machine slot", "imagePrompt": "A hand dropping a single coin into a vending machine's coin slot, about to receive one item in return.", "alt": "Paying For Profit", "depictable": false, "credit": "Pexels · Close-up view of a vending machine coin and bill insert station with visible instructions.", "creditUrl": "https://www.pexels.com/photo/close-up-of-a-coin-and-bill-insert-on-a-vending-machine-4700385/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-def-1.webp" }, "uid": "h925gc1d99uja" }, { "id": "fi-mcq-rw-l7-p1-multiples", "tags": [ "valuation-multiples", "price-to-sales" ], "title": "When P/E Breaks Down", "body": "When a high-growth company isn't yet profitable, P/E breaks down since there are no earnings to divide by — P/S (market cap ÷ revenue) becomes the standard alternative instead.", "shape": "fact", "illustration": { "imageSearchTerm": "broken 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"https://cdn.recurxive.com/packs/investing-201/images/fi-ot-recall-2.webp" }, "uid": "18dyztm1rvuzrw" }, { "id": "fi-ot-r72high-1", "tags": [ "rule-of-72", "doubling" ], "title": "Doubling Time At 10%", "body": "At a 10% annual return — roughly the S&P 500's long-run average — the Rule of 72 says money takes about 7.2 years to double.", "shape": "fact", "illustration": { "imageSearchTerm": "glowing orb splitting doubling", "imagePrompt": "A single glowing orb of light splitting cleanly into two identical glowing orbs against a dark background.", "alt": "Doubling Time At 10%", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Rose,_Glowing_Ruby,_%E3%83%90%E3%83%A9,_%E3%82%B0%E3%83%AD%E3%83%BC%E3%82%A4%E3%83%B3%E3%82%B0_%E3%83%AB%E3%83%93%E3%83%BC,_(9584863157).jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-r72high-1.webp" }, "uid": "w8j1de1k3t0sa" }, { "id": "fi-ot-r72low-1", "tags": [ "rule-of-72", "low-rates" ], "title": "Bonds Take 18 Years", "body": "Bonds have historically returned around 4% a year, and by the Rule of 72 that pace means money takes about 18 years to double.", "shape": "fact", "illustration": { "imageSearchTerm": "tortoise slow steady path", "imagePrompt": "A tortoise walking slowly but steadily along a long dirt path toward a distant horizon.", "alt": "Bonds Take 18 Years", "depictable": false, "credit": "Pexels · Tortoise walking on a sunny dirt path surrounded by nature, showcasing its natural habitat and slow-paced journey.", "creditUrl": "https://www.pexels.com/photo/tortoise-walking-on-a-sunlit-outdoor-path-31804407/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-r72low-1.webp" }, "uid": "l655zvd8ll3v" }, { "id": "fi-ot-r72low-2", "tags": [ "rule-of-72", "low-rates" ], "title": "36 Years To Double", "body": "At a typical 2% savings-account return, the Rule of 72 shows money takes a sluggish 36 years to double — far slower than stock-like returns.", "shape": "fact", "illustration": { "imageSearchTerm": "water drop filling glass", "imagePrompt": "A single drop of water falling slowly into a glass that is already nearly full, one drop at a time.", "alt": "36 Years To Double", "depictable": false, "credit": "Pexels · Artistic shot of water pouring into a wine glass with bubbles and droplets.", "creditUrl": "https://www.pexels.com/photo/water-in-a-wineglass-10240557/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-r72low-2.webp" }, "uid": "1rzz7sn11e0e59" }, { "id": "fi-ot-index-etf-1", "tags": [ "index-fund", "passive" ], "title": "Matching The Market", "body": "An index fund tracks a market index like the S&P 500 by holding all its constituent stocks in proportion to their weight, aiming to match the market rather than beat it.", "shape": "fact", "illustration": { "imageSearchTerm": "runner matching train speed", "imagePrompt": "A runner sprinting alongside a moving train on a 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"https://commons.wikimedia.org/wiki/File:%D0%9A%D0%BE%D0%BA%D0%B0%D0%BD%D0%B4,_%D0%98%D1%81%D1%82%D0%B8%D0%BA%D0%BB%D0%BE%D0%BB_50,_%D0%BE%D0%BA%D0%BD%D0%BE.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-index-etf-2.webp" }, "uid": "1a91kcw58e87i" }, { "id": "fi-ot-index-etf-3", "tags": [ "etf", "fees" ], "title": "ETFs' Rock-Bottom Fees", "body": "ETFs commonly carry expense ratios of just 0.03–0.20%, versus the 1–2% charged by actively managed funds — one of the core advantages that has fueled passive investing's rise.", "shape": "fact", "illustration": { "imageSearchTerm": "small coin jar comparison", "imagePrompt": "A small coin resting alone in a nearly empty glass jar beside a second jar overflowing with coins.", "alt": "ETFs' Rock-Bottom Fees", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Image_taken_from_page_124_of_%27La_Terra,_trattato_popolare_di_geografia_universale_per_G._Marinelli_ed_altri_scienziati_italiani,_etc._(With_illustrations_and_maps.)%27_(11159467355).jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-index-etf-3.webp" }, "uid": "rl3hkb1s8bxbb" }, { "id": "fi-ot-cycle-1", "tags": [ "business-cycle", "recall" ], "title": "12 Cycles Since 1945", "body": "The U.S. economy has cycled through 12 full business cycles since 1945, each one alternating between expansion and contraction.", "shape": "fact", "illustration": { "imageSearchTerm": "pendulum swinging back forth", "imagePrompt": "A brass pendulum caught mid-swing, suspended in gentle motion between two extremes.", "alt": "12 Cycles Since 1945", "depictable": false, "credit": "AI-generated (gpt-image-1.5)", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-cycle-1.webp" }, "uid": "jgwk1l183vvjl" }, { "id": "fi-ot-cycle-4", "tags": [ "business-cycle", "contraction" ], "title": "Good Times Outlast Bad", "body": "U.S. economic contractions have historically lasted about 10 months on average, versus roughly five years for the average expansion. 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separate organized bins arranged in a grid.", "alt": "What GICS Stands For", "depictable": false, "credit": "Pexels · ROMBO · Pexels License", "creditUrl": "https://www.pexels.com/photo/top-view-of-folded-papers-in-a-container-with-separators-7918324/", "subject": "Top-down view of a container divided by white separators into a 6x2 grid of compartments, each holding a fanned stack of folded papers; monochrome, no text or logos", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-gics-2.webp" }, "uid": "jjdzlvoq4psr" }, { "id": "fi-mcq-rw-l10-p2-phases", "tags": [ "sector-rotation", "business-cycle" ], "title": "Mid-Cycle Sector Leaders", "body": "In the mid cycle — a period of steady growth following early recovery — technology, industrials, and communication services stocks have tended to lead the market.", "shape": "fact", "illustration": { "imageSearchTerm": "industrial factory technology growth", "imagePrompt": "A modern industrial manufacturing facility with robotic arms and glowing control panels operating at steady capacity.", "alt": "Mid-Cycle Sector Leaders", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Eks_Medienkonverter2_Industrial_Ethernet_Switch.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-mcq-rw-l10-p2-phases.webp" }, "uid": "ns30um1wg08jq" }, { "id": "fi-ot-rotation-3", "tags": [ "rotation", "recession" ], "title": "Recession's Defensive Sectors", "body": "During recessions, defensive sectors like utilities, healthcare, and consumer staples have tended to hold up best — the things people keep buying regardless of conditions.", "shape": "fact", "illustration": { "imageSearchTerm": "grocery store staples shelf", "imagePrompt": "A well-stocked grocery store aisle lined with everyday household staples under bright fluorescent lighting.", "alt": "Recession's Defensive Sectors", "depictable": true, "credit": "Pexels · Close-up of sugar 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"https://cdn.recurxive.com/packs/investing-201/images/fi-ot-mag7-origin-1.webp" }, "uid": "1sgpef6x4dfg2" }, { "id": "fi-ot-mag7-origin-3", "tags": [ "scale", "nvidia" ], "title": "Nvidia's $5 Trillion Moment", "body": "Nvidia briefly reached a $5 trillion market cap in October 2025 after a roughly 1,500% five-year run, becoming the most valuable company in history to that point.", "shape": "fact", "illustration": { "imageSearchTerm": "computer processor chip closeup", "imagePrompt": "A close-up of an advanced computer processor chip with intricate circuitry, illuminated dramatically from the side.", "alt": "Nvidia's $5 Trillion Moment", "depictable": true, "credit": "maushammer (Openverse) · by 2.0", "creditUrl": "https://www.flickr.com/photos/8728129@N05/2854419743", "subject": "A macro photo of two real semiconductor chips (a Spansion memory IC and a Texas Instruments IC) soldered onto a green PCB, in focus and well lit — a genuine processor/chip closeup.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-mag7-origin-3.webp" }, "uid": "2fo53x12hm11p" }, { "id": "fi-ot-moats-a-2", "tags": [ "moat", "microsoft" ], "title": "Microsoft's Switching-Cost Moat", "body": "Microsoft's competitive moat rests on deep enterprise switching costs across Azure, Office 365, and Copilot, making it costly for businesses to walk away.", "shape": "fact", "illustration": { "imageSearchTerm": "data center server racks", "imagePrompt": "Rows of illuminated server racks humming inside a large, cool data center.", "alt": "Microsoft's Switching-Cost Moat", "depictable": true, "credit": "PiDatacenters · CC BY-SA 4.0", "creditUrl": "https://commons.wikimedia.org/wiki/File:Racks_Amravati_Data_Center.jpg", "subject": "A real, brightly lit, symmetric corridor of white perforated-door server cabinets in a raised-floor data center — clean, unambiguous, professional photograph.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-moats-a-2.webp" }, "uid": "13hddpwl4qly" }, { "id": "fi-ot-moats-a-3", "tags": [ "moat", "amazon" ], "title": "Amazon's Scale Plus Logistics", "body": "Amazon pairs the massive scale of AWS with an unrivaled logistics network, combining cloud-computing dominance with best-in-class shipping and delivery.", "shape": "fact", "illustration": { "imageSearchTerm": "warehouse fulfillment center conveyor", "imagePrompt": "A vast logistics warehouse with conveyor belts moving countless packages toward waiting delivery trucks.", "alt": "Amazon's Scale Plus Logistics", "depictable": true, "credit": "Wikipedia — Distribution center · See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Distribution_center", "subject": "Wide interior view of a large distribution warehouse: tall blue steel pallet racking stacked with shrink-wrapped pallets of consumer goods (drinks, toilet paper), hi-vis workers, and forklifts on the floor — genuinely evocative of a large-scale fulfillment operation.", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-moats-a-3.webp" }, "uid": "1fk22hdow8j5" }, { "id": "fi-ot-moats-b-1", "tags": [ "moat", "meta" ], "title": "Meta's Network Effect Moat", "body": "Meta's competitive moat combines the network effects of Facebook, Instagram, and WhatsApp with its ad-targeting machine, tracked through daily active users and ad revenue.", "shape": "fact", "illustration": { "imageSearchTerm": "people smartphones social network", "imagePrompt": "A diverse crowd of people each absorbed in their smartphones, faint glowing lines suggesting invisible connections between them.", "alt": "Meta's Network Effect Moat", "depictable": true, "credit": "Chris Brown from Melbourne, Australia · CC BY-SA 2.0", "creditUrl": "https://commons.wikimedia.org/wiki/File:Anti-Social_Networks_(22765962769).jpg", "subject": "Two people seated on a park bench in dappled sunlight — a man slumped forward with his head down, a woman beside him looking at her smartphone — 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"volatility" ], "title": "The Market's Fear Gauge", "body": "The VIX, nicknamed the market's 'fear gauge,' measures expected S&P 500 volatility over the next 30 days and tends to spike during periods of market stress.", "shape": "fact", "illustration": { "imageSearchTerm": "pressure gauge red zone", "imagePrompt": "A pressure gauge dial with its needle swinging sharply into a red danger zone, faint steam venting from the housing.", "alt": "The Market's Fear Gauge", "depictable": false, "credit": "Pexels · Industrial gauge attached to a red pipe against clear sky and buildings.", "creditUrl": "https://www.pexels.com/photo/gas-meter-near-wall-13068510/", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-basic-terms-1.webp" }, "uid": "v1v2z0102l7yu" }, { "id": "fi-ot-basic-terms-2", "tags": [ "blue-chip", "company-terms" ], "title": "Defining A Blue Chip", "body": "A 'blue chip' stock is a large, well-established, financially sound company with a long track record — the opposite of a young or unproven business.", "shape": "fact", "illustration": { "imageSearchTerm": "blue poker chip casino", "imagePrompt": "A high-value blue poker chip resting prominently atop neat stacks of casino chips on a felt table.", "alt": "Defining A Blue Chip", "depictable": true, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:1994-07-14_Amsterdam_-_(18).jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-basic-terms-2.webp" }, "uid": "8y0ttexb2j3a" }, { "id": "fi-ot-basic-terms-3", "tags": [ "dividend-yield", "income" ], "title": "Calculating Dividend Yield", "body": "A stock's dividend yield is calculated by dividing its annual dividend per share by the stock price, giving investors a measure of income return.", "shape": "fact", "illustration": { "imageSearchTerm": "coins trickling income stream", "imagePrompt": "A thin, steady stream of coins trickling from a raised stack into a collection cup below.", "alt": "Calculating Dividend Yield", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:AngelikaRaimbow.jpg", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-basic-terms-3.webp" }, "uid": "1kdjoro1kg7326" }, { "id": "fi-ot-basic-terms-4", "tags": [ "ipo", "primary-market" ], "title": "What An IPO Represents", "body": "An IPO, or Initial Public Offering, is a private company's first sale of stock to the public, the moment it begins trading on a stock exchange.", "shape": "fact", "illustration": { "imageSearchTerm": "office celebration company IPO", "imagePrompt": "A jubilant group of office employees celebrating with confetti and raised hands as their company's stock begins trading publicly.", "alt": "What An IPO Represents", "depictable": true, "credit": "Pexels · A joyful office birthday celebration with colleagues holding a sign. 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"https://cdn.recurxive.com/packs/investing-201/images/fi-ot-algo-cbdc-3.webp" }, "uid": "1u281cg1e6415o" }, { "id": "fi-ot-tax-2", "tags": [ "401k", "tax-treatment" ], "title": "The 401(k) Tax Trade", "body": "A 401(k) is funded with pre-tax dollars that reduce taxable income today, but withdrawals are taxed once the money comes out in retirement.", "shape": "fact", "illustration": { "imageSearchTerm": "nest egg retirement glow", "imagePrompt": "A glowing golden egg resting safely in a soft nest, set against a warm distant sunset.", "alt": "The 401(k) Tax Trade", "depictable": false, "credit": "AI-generated (gpt-image-1.5)", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-tax-2.webp" }, "uid": "5bejm516bgcud" }, { "id": "fi-ot-tax-3", "tags": [ "hsa", "tax-treatment" ], "title": "A Stealth Retirement Account", "body": "The HSA offers a unique triple tax advantage — pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses — letting it double as a stealth retirement account.", "shape": "fact", "illustration": { "imageSearchTerm": "piggy bank hidden stethoscope", "imagePrompt": "A ceramic piggy bank sitting quietly in soft shadow beside a stethoscope on a wooden table.", "alt": "A Stealth Retirement Account", "depictable": false, "credit": "Wikimedia Commons · see source", "creditUrl": "https://commons.wikimedia.org/wiki/File:Piggy_French_-_Quarrycrest_Echo_-_Gel%C3%A4nde_EM_Vielseitigkeit_2019.JPG", "url": "https://cdn.recurxive.com/packs/investing-201/images/fi-ot-tax-3.webp" }, "uid": "hv5uxi16436j8" }, { "id": "fi-mcq-rw-l14-p2-compound", "tags": [ "compounding", "inflation", "sp500" ], "title": "The Inflation Illusion", "body": "A $100 investment in the S&P 500 in 1957 grew to about $106,000 by 2025 in nominal terms — but adjusted for inflation, that's only about $9,700 in real purchasing power.", "shape": "fact", "illustration": { "imageSearchTerm": "currency stack shrinking shadow", "imagePrompt": "A tall stack 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the largest one-day percentage drop in U.S. market history, unlike the multi-day or multi-year declines of the other crashes.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "8of78hlvd7zd" }, { "id": "ot-cov-key-events-2", "shape": "mcq", "tags": [ "market-crashes", "history" ], "prompt": { "modality": "text", "value": "According to the guide, the Crash of 1929's nearly 25% Dow decline unfolded over how many days?" }, "options": [ { "modality": "text", "value": "Two days" }, { "modality": "text", "value": "One week" }, { "modality": "text", "value": "One day" }, { "modality": "text", "value": "One month" } ], "correctIndex": 0, "explanation": "The guide states the 1929 crash saw the Dow fall nearly 25% over just two days — a multi-day decline distinct from Black Monday 1987's single-session 22.6% drop, which holds the one-day record.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1ls4m0oh3uz3c" }, { "id": "ot-cov-recall-strategy-1", "shape": "mcq", "tags": [ "magnificent-seven", "recall" ], "prompt": { "modality": "text", "value": "Which company is NOT one of the 'Magnificent Seven' mega-cap tech stocks?" }, "options": [ { "modality": "text", "value": "Alphabet" }, { "modality": "text", "value": "Nvidia" }, { "modality": "text", "value": "Meta" }, { "modality": "text", "value": "Netflix" } ], "correctIndex": 3, "explanation": "The Magnificent Seven are Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla. Netflix is a similar mega-cap name but isn't one of the seven.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ezpcdm1et40yg" }, { "id": "ot-cov-recall-strategy-2", "shape": "mcq", "tags": [ "magnificent-seven", "recall" ], "prompt": { "modality": "text", "value": "According to the guide, the Magnificent Seven now drive much of the performance of which index?" }, "options": [ { "modality": "text", "value": "The Dow Jones Industrial Average" }, { "modality": "text", "value": "The Nasdaq Composite" }, { "modality": "text", "value": "The S&P 500" }, { "modality": "text", "value": "The Russell 2000" } ], "correctIndex": 2, "explanation": "The guide states the Magnificent Seven are mega-cap tech stocks that now drive much of the S&P 500's performance.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "10fmkx9ohsak5" }, { "id": "ot-cov-recall-strategy-3", "shape": "mcq", "tags": [ "economic-moat", "recall" ], "prompt": { "modality": "text", "value": "What term names the durable competitive advantage that lets the best companies compound for decades?" }, "options": [ { "modality": "text", "value": "Margin of safety" }, { "modality": "text", "value": "Free cash flow" }, { "modality": "text", "value": "Economic moat" }, { "modality": "text", "value": "Dollar-cost averaging" } ], "correctIndex": 2, "explanation": "An economic moat — pricing power, switching costs, network effects — is the durable advantage that lets top companies compound for decades.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "6p9dwt1yqu0uh" }, { "id": "ot-cov-recall-strategy-4", "shape": "mcq", "tags": [ "economic-moat", "recall" ], "prompt": { "modality": "text", "value": "Which of these is named as a source of a company's economic moat?" }, "options": [ { "modality": "text", "value": "The Rule of 72" }, { "modality": "text", "value": "Dollar-cost averaging" }, { "modality": "text", "value": "Network effects" }, { "modality": "text", "value": "Tax-free withdrawals" } ], "correctIndex": 2, "explanation": "The guide lists pricing power, switching costs, and network effects as sources of a durable economic moat.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "95xpi5eqinv7" }, { "id": "ot-cov-stock-types-1", "shape": "mcq", "tags": [ "stock-types", "equities" ], "prompt": { "modality": "text", "value": "Which stock type reinvests earnings aggressively and is expected to grow faster than average, like Nvidia?" }, "options": [ { "modality": "text", "value": "Cyclical stock" }, { "modality": "text", "value": "Value stock" }, { "modality": "text", "value": "Defensive stock" }, { "modality": "text", "value": "Growth stock" } ], "correctIndex": 3, "explanation": "Growth stocks reinvest earnings aggressively and are expected to grow faster than average — the guide cites Nvidia as an example.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "g7shr9tpotyp" }, { "id": "ot-cov-stock-types-2", "shape": "mcq", "tags": [ "stock-types", "equities" ], "prompt": { "modality": "text", "value": "What distinguishes growth stocks from value stocks, per the guide?" }, "options": [ { "modality": "text", "value": "Trades below its estimated intrinsic value" }, { "modality": "text", "value": "Reinvests earnings for faster-than-average growth" }, { "modality": "text", "value": "Pays higher dividends than value stocks" }, { "modality": "text", "value": "Includes only utility companies" } ], "correctIndex": 1, "explanation": "Growth stocks reinvest earnings aggressively to grow faster than average, unlike value stocks, which trade below their estimated intrinsic worth.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "3pjtn16i7n0z" }, { "id": "ot-cov-stock-types-3", "shape": "mcq", "tags": [ "stock-types", "equities" ], "prompt": { "modality": "text", "value": "Which stock type trades below its estimated intrinsic value — classic Graham/Buffett territory?" }, "options": [ { "modality": "text", "value": "Cyclical stock" }, { "modality": "text", "value": "Value stock" }, { "modality": "text", "value": "Growth stock" }, { "modality": "text", "value": "Defensive stock" } ], "correctIndex": 1, "explanation": "Value stocks trade below their estimated intrinsic worth, the classic Graham and Buffett approach to picking undervalued companies.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "gbdxnt1nc24cz" }, { "id": "ot-cov-stock-types-4", "shape": "mcq", "tags": [ "stock-types", "equities" ], "prompt": { "modality": "text", "value": "Unlike growth stocks, value stocks trade below what, according to the guide?" }, "options": [ { "modality": "text", "value": "Their estimated intrinsic value" }, { "modality": "text", "value": "Their all-time high price" }, { "modality": "text", "value": "Their book value per share" }, { "modality": "text", "value": "Their sector's average P/E" } ], "correctIndex": 0, "explanation": "Value stocks trade below their estimated intrinsic worth, unlike growth stocks, which reinvest aggressively for above-average growth.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1eqf9ux1akgx89" }, { "id": "ot-cov-income-statement-1", "shape": "mcq", "tags": [ "income-statement", "accounting" ], "prompt": { "modality": "text", "value": "What does COGS stand for on the income statement?" }, "options": [ { "modality": "text", "value": "Consolidated Operating Gains Summary" }, { "modality": "text", "value": "Cost of Goods Sold" }, { "modality": "text", "value": "Cost of Gross Sales" }, { "modality": "text", "value": "Capital Operating Gross Spend" } ], "correctIndex": 1, "explanation": "COGS stands for Cost of Goods Sold — the direct costs of producing the revenue a company reports.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "zxvnu5fd8jzv" }, { "id": "ot-cov-income-statement-2", "shape": "mcq", "tags": [ "income-statement", "accounting" ], "prompt": { "modality": "text", "value": "Subtracting COGS from revenue on the income statement gives you which figure?" }, "options": [ { "modality": "text", "value": "Gross profit" }, { "modality": "text", "value": "Net income" }, { "modality": "text", "value": "EPS" }, { "modality": "text", "value": "EBITDA" } ], "correctIndex": 0, "explanation": "Revenue minus COGS (Cost of Goods Sold) yields gross profit, the next line down the income statement.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "ndgbn21llbrco" }, { "id": "ot-cov-choosing-metrics-1", "shape": "mcq", "tags": [ "valuation-multiples", "banks" ], "prompt": { "modality": "text", "value": "Which valuation multiple is most useful for banks and asset-heavy industries?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "P/B (Price-to-Book)" }, { "modality": "text", "value": "FCF yield" }, { "modality": "text", "value": "P/E (Price-to-Earnings)" } ], "correctIndex": 1, "explanation": "P/B divides price by book value per share, most useful for banks and asset-heavy industries where balance-sheet value tracks earning power.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "x6zc6m1hkihky" }, { "id": "ot-cov-choosing-metrics-2", "shape": "mcq", "tags": [ "valuation-multiples", "banks" ], "prompt": { "modality": "text", "value": "For banks, where balance-sheet value closely tracks earning power, which multiple is most revealing?" }, "options": [ { "modality": "text", "value": "Price-to-Book" }, { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "EV/EBITDA" }, { "modality": "text", "value": "Price-to-Sales" } ], "correctIndex": 0, "explanation": "The guide names Price-to-Book as most revealing for banks and asset-heavy firms, since their balance-sheet value tracks earning power.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "7db9op6fv047" }, { "id": "ot-cov-choosing-metrics-3", "shape": "mcq", "tags": [ "valuation-multiples", "mergers" ], "prompt": { "modality": "text", "value": "Which multiple is the standard metric used in mergers and leveraged buyouts?" }, "options": [ { "modality": "text", "value": "PEG ratio" }, { "modality": "text", "value": "P/S ratio" }, { "modality": "text", "value": "EV/EBITDA" }, { "modality": "text", "value": "P/E ratio" } ], "correctIndex": 2, "explanation": "EV/EBITDA looks at the whole enterprise relative to operating cash generation, making it the standard metric in M&A and leveraged buyouts.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "12n19j01kll682" }, { "id": "ot-cov-choosing-metrics-4", "shape": "mcq", "tags": [ "valuation-multiples", "mergers" ], "prompt": { "modality": "text", "value": "EV/EBITDA is preferred over P/E when comparing companies with different what?" }, "options": [ { "modality": "text", "value": "Geographic locations" }, { "modality": "text", "value": "Growth rates" }, { "modality": "text", "value": "Dividend policies" }, { "modality": "text", "value": "Capital structures" } ], "correctIndex": 3, "explanation": "EV/EBITDA accounts for the whole enterprise (debt plus equity), making it preferred over P/E when capital structures differ.", "source": { "label": "Investing 201 — Objective Test" }, "uid": "1t8rjmy19c5ybk" } ], "lessons": [ { "id": "l1-history", "title": "A Brief History of Markets", "studyGuidePath": "/packs/investing-201/guides/l1-p1-birth.md", "parts": [ { "id": "l1-p1-birth", "title": "Birth of American markets", "studyGuideAnchor": "birth-of-american-markets", "itemIds": [ "fact-buttonwood", "numeric-buttonwood-year", "fact-philadelphia", "fact-nyse-naming", "fact-wall-street-name", "mcq-first-exchange", "q-inv-philadelphia-year", "q-inv-first-listed", "q-inv-wall-origin", "tf-f-investing-201-q-inv-first-listed", "tf-t-investing-201-q-inv-wall-origin", "concept-rw-investing-201-philadelphia-stock-exchange", "concept-rw-investing-201-new-york-stock-exchange", "concept-rw-investing-201-wall-street", "ot-early-exchanges-buttonwood-year", "ot-early-exchanges-first-listed", "ot-early-exchanges-wall-name", "ot-early-exchanges-buttonwood-details", "fi-ot-early-exchanges-first-listed" ], "order": 1, "studyGuidePath": "/packs/investing-201/guides/l1-p1-birth.md" }, { "id": "l1-p2-nasdaq", "title": "The Nasdaq and electronic trading", "studyGuideAnchor": "the-nasdaq-and-electronic-trading", "itemIds": [ "fact-nasdaq-founding", "numeric-nasdaq-year", "definition-nasdaq", "fact-nasdaq-ipo", "fact-nasdaq-today", "numeric-dotcom-peak", "mcq-rw-l1-p2-nasdaq", "czr-investing-201-definition-nasdaq", "tf-df-investing-201-definition-nasdaq", "concept-rw-investing-201-nasdaq", "ot-nasdaq-acronym", "ot-nasdaq-founded-year", "ot-nasdaq-original-function", "ot-nasdaq-rank", "ot-nasdaq-firsts-not-true", "ot-dotcom-composite", "fi-mcq-rw-l1-p2-nasdaq", "fi-ot-nasdaq-acronym" ], "order": 2, "studyGuidePath": "/packs/investing-201/guides/l1-p2-nasdaq.md" }, { "id": "l1-p3-crashes", "title": "The great crashes", "studyGuideAnchor": "the-great-crashes", "itemIds": [ "fact-crash-1929", "fact-black-monday", "fact-dotcom-bust", "fact-2008", "fact-covid-crash", "numeric-black-monday-drop", "numeric-covid-days", "cz-investing-201-fact-dotcom-bust", "cz-investing-201-fact-covid-crash", "mcq-c-investing-201-fact-covid-crash", "ot-dotcom-cause", "ot-dotcom-survivors", "ot-dotcom-not-true", "ot-crashes-black-monday-drop", "ot-crashes-fastest-bear", "ot-crashes-1929-magnitude", "ot-crashes-2008-drop", "ot-crashes-covid-recovery" ], "order": 3, "studyGuidePath": "/packs/investing-201/guides/l1-p3-crashes.md" } ], "order": 1, "objectives": [ { "id": "obj-early-exchanges", "statement": "Identify the founding milestones and firsts of early American stock exchanges.", "demonstrationIds": [ "d-buttonwood-origins", "d-wall-street-origin" ] }, { "id": "obj-nasdaq-electronic", "statement": "Explain what the Nasdaq is and its role as the first electronic stock market.", "demonstrationIds": [ "d-nasdaq" ] }, { "id": "obj-dotcom", "statement": "Recount the dot-com bubble's peak and the scale of its collapse.", "demonstrationIds": [ "d-dotcom" ] }, { "id": "obj-great-crashes", "statement": "Compare the great market crashes by magnitude and speed.", "demonstrationIds": [ "d-crash-magnitudes" ] } ], "demonstrations": [ { "id": "d-buttonwood-origins", "label": "Buttonwood, first exchange, Philadelphia, first NYSE listing", "itemIds": [ "numeric-buttonwood-year", "mcq-first-exchange", "q-inv-philadelphia-year", "q-inv-first-listed" ], "requiredCorrect": 3 }, { "id": "d-wall-street-origin", "label": "Origin of the name Wall Street", "itemIds": [ "q-inv-wall-origin", "tf-t-investing-201-q-inv-wall-origin", "tf-f-investing-201-q-inv-first-listed" ] }, { "id": "d-nasdaq", "label": "What the Nasdaq is and when it launched", "itemIds": [ "definition-nasdaq", "czr-investing-201-definition-nasdaq", "tf-df-investing-201-definition-nasdaq", "numeric-nasdaq-year" ], "requiredCorrect": 3 }, { "id": "d-dotcom", "label": "Dot-com peak and collapse", "itemIds": [ "numeric-dotcom-peak", "mcq-rw-l1-p2-nasdaq", "cz-investing-201-fact-dotcom-bust" ] }, { "id": "d-crash-magnitudes", "label": "Black Monday, COVID crash speed/size", "itemIds": [ "numeric-black-monday-drop", "numeric-covid-days", "cz-investing-201-fact-covid-crash", "mcq-c-investing-201-fact-covid-crash" ], "requiredCorrect": 4 } ], "objectiveTests": [ { "id": "test-early-exchanges", "objectiveId": "obj-early-exchanges", "title": "Early American Exchanges", "mcqIds": [ "mcq-first-exchange", "ot-early-exchanges-buttonwood-year", "ot-early-exchanges-first-listed", "ot-early-exchanges-wall-name", "ot-early-exchanges-buttonwood-details" ] }, { "id": "test-nasdaq-electronic", "objectiveId": "obj-nasdaq-electronic", "title": "The Nasdaq: First Electronic Market", "mcqIds": [ "ot-nasdaq-acronym", "ot-nasdaq-founded-year", "ot-nasdaq-original-function", "ot-nasdaq-rank", "ot-nasdaq-firsts-not-true" ] }, { "id": "test-dotcom", "objectiveId": "obj-dotcom", "title": "The Dot-Com Bubble", "mcqIds": [ "mcq-rw-l1-p2-nasdaq", "ot-dotcom-composite", "ot-dotcom-cause", "ot-dotcom-survivors", "ot-dotcom-not-true" ] }, { "id": "test-great-crashes", "objectiveId": "obj-great-crashes", "title": "Comparing the Great Crashes", "mcqIds": [ "ot-crashes-black-monday-drop", "ot-crashes-fastest-bear", "ot-crashes-1929-magnitude", "ot-crashes-2008-drop", "ot-crashes-covid-recovery" ] } ] }, { "id": "l2-regulation", "title": "Who Governs the Markets", "studyGuidePath": "/packs/investing-201/guides/l2-regulation.md", "parts": [ { "id": "l2-p1-sec", "title": "The SEC and foundational laws", "studyGuideAnchor": "the-sec-and-foundational-laws", "itemIds": [ "fact-sec", "fact-sec-mission", "definition-sec", "fact-securities-act-1933", "fact-glass-steagall", "fact-finra", "mcq-rw-l2-p1-sec", "czr-investing-201-definition-sec", "cz-investing-201-fact-securities-act-1933", "cz-investing-201-fact-glass-steagall", "tf-d-investing-201-definition-sec", "concept-rw-investing-201-finra", "ot-sec-role-1", "ot-sec-role-2", "ot-sec-role-3", "ot-sec-role-4", "ot-depins-2", "ot-depins-3" ], "order": 1 }, { "id": "l2-p2-alphabet", "title": "The alphabet soup of regulators", "studyGuideAnchor": "the-alphabet-soup-of-regulators", "itemIds": [ "pair-cftc", "pair-fdic", "pair-fed", "pair-occ", "pair-cfpb", "pair-fincen", "numeric-fdic-limit", "mcq-sec-vs-finra", "tf-t-investing-201-pair-cftc", "tf-t-investing-201-pair-fdic", "tf-f-investing-201-pair-occ", "tf-f-investing-201-pair-cfpb", "concept-rw-investing-201-cftc", "concept-rw-investing-201-fdic", "concept-rw-investing-201-federal-reserve", "concept-rw-investing-201-fincen", "ot-regulators-1", "ot-regulators-2", "ot-regulators-3", "ot-regulators-4", "ot-regulators-5", "ot-depins-1", "ot-depins-4" ], "order": 2 } ], "order": 2, "objectives": [ { "id": "obj-sec-role", "statement": "Explain the SEC's role and the New Deal laws that created modern market regulation.", "demonstrationIds": [ "d-sec-def", "d-foundational-laws" ] }, { "id": "obj-regulators", "statement": "Match each financial regulator (CFTC, FDIC, Fed, OCC, CFPB, FinCEN) to its jurisdiction.", "demonstrationIds": [ "d-reg-pairs-1", "d-reg-pairs-2" ] }, { "id": "obj-deposit-insurance", "statement": "Recall the FDIC deposit-insurance limit and distinguish the SEC from FINRA.", "demonstrationIds": [ "d-fdic-finra" ] } ], "demonstrations": [ { "id": "d-sec-def", "label": "What the SEC is", "itemIds": [ "definition-sec", "czr-investing-201-definition-sec", "tf-d-investing-201-definition-sec" ] }, { "id": "d-foundational-laws", "label": "1933 Securities Act and Glass-Steagall", "itemIds": [ "cz-investing-201-fact-securities-act-1933", "cz-investing-201-fact-glass-steagall", "mcq-rw-l2-p1-sec" ] }, { "id": "d-reg-pairs-1", "label": "CFTC, FDIC, Fed, OCC jurisdictions", "itemIds": [ "pair-cftc", "pair-fdic", "pair-fed", "pair-occ" ], "requiredCorrect": 4 }, { "id": "d-reg-pairs-2", "label": "CFPB, FinCEN, and regulator T/F checks", "itemIds": [ "pair-cfpb", "pair-fincen", "tf-t-investing-201-pair-cftc", "tf-t-investing-201-pair-fdic" ], "requiredCorrect": 4 }, { "id": "d-fdic-finra", "label": "FDIC limit; SEC vs FINRA", "itemIds": [ "numeric-fdic-limit", "mcq-sec-vs-finra" ], "requiredCorrect": 2 } ], "objectiveTests": [ { "id": "test-sec-role", "objectiveId": "obj-sec-role", "title": "The SEC & New Deal Laws", "mcqIds": [ "mcq-rw-l2-p1-sec", "ot-sec-role-1", "ot-sec-role-2", "ot-sec-role-3", "ot-sec-role-4" ] }, { "id": "test-regulators", "objectiveId": "obj-regulators", "title": "Matching the Regulators", "mcqIds": [ "ot-regulators-1", "ot-regulators-2", "ot-regulators-3", "ot-regulators-4", "ot-regulators-5" ] }, { "id": "test-deposit-insurance", "objectiveId": "obj-deposit-insurance", "title": "FDIC Limit & SEC vs FINRA", "mcqIds": [ "mcq-sec-vs-finra", "ot-depins-1", "ot-depins-2", "ot-depins-3", "ot-depins-4" ] } ] }, { "id": "l3-asset-classes", "title": "The Foundations: Asset Classes", "studyGuidePath": "/packs/investing-201/guides/l3-asset-classes.md", "parts": [ { "id": "l3-p1-equities", "title": "Equities", "studyGuideAnchor": "equities", "itemIds": [ "definition-stock", "fact-stock-returns", "numeric-sp500-return", "pair-growth-stock", "pair-value-stock", "pair-cyclical-stock", "pair-defensive-stock", "mcq-rw-l3-p1-equities", "cz-investing-201-definition-stock", "tf-f-investing-201-pair-cyclical-stock", "tf-t-investing-201-pair-defensive-stock", "tf-df-investing-201-definition-stock", "ot-equity-basics-1", "ot-equity-basics-2", "ot-equity-basics-3", "ot-equity-basics-4", "ot-equity-basics-5", "ot-stock-types-1", "ot-stock-types-2", "ot-stock-types-3", "ot-stock-types-4", "fi-ot-equity-basics-1", "fi-ot-equity-basics-2", "fi-ot-equity-basics-5", "fi-mcq-rw-l3-p1-equities", "ot-cov-stock-types-1", "ot-cov-stock-types-2", "ot-cov-stock-types-3", "ot-cov-stock-types-4" ], "order": 1 }, { "id": "l3-p2-bonds", "title": "Bonds and fixed income", "studyGuideAnchor": "bonds-and-fixed-income", "itemIds": [ "definition-bond", "pair-coupon", "pair-treasury", "pair-muni", "pair-junk-bond", "fact-yield-curve", "mcq-rw-l3-p2-bonds", "cz-investing-201-definition-bond", "tf-t-investing-201-pair-coupon", "tf-d-investing-201-definition-bond", "concept-rw-investing-201-u-s-treasury-bonds", "concept-rw-investing-201-corporate-bonds", "concept-rw-investing-201-municipal-bonds", "concept-rw-investing-201-junk-bonds", "ot-bonds-1", "ot-bonds-2", "ot-bonds-3", "ot-bonds-4", "ot-bonds-5", "fi-ot-bonds-1", "fi-ot-bonds-3", "fi-ot-bonds-4", "fi-ot-bonds-5" ], "order": 2 }, { "id": "l3-p3-alt", "title": "Commodities, crypto, and real estate", "studyGuideAnchor": "commodities-crypto-and-real-estate", "itemIds": [ "fact-commodities", "fact-gold-hedge", "definition-blockchain", "fact-bitcoin", "fact-ethereum", "pair-hodl", "definition-reit", "fact-crypto-risk", "mcq-rw-l3-p3-alt", "czr-investing-201-definition-blockchain", "czr-investing-201-definition-reit", "cz-investing-201-fact-gold-hedge", "cz-investing-201-fact-bitcoin", "cz-investing-201-fact-ethereum", "tf-f-investing-201-pair-hodl", "tf-df-investing-201-definition-blockchain", "tf-df-investing-201-definition-reit", "ot-crypto-1", "ot-crypto-2", "ot-crypto-3", "ot-crypto-4", "ot-crypto-5", "ot-reit-hedge-1", "ot-reit-hedge-2", "ot-reit-hedge-3", "ot-reit-hedge-4" ], "order": 3 } ], "order": 3, "objectives": [ { "id": "obj-equity-basics", "statement": "Define stock ownership and recall the S&P 500's long-run average return.", "demonstrationIds": [ "d-stock-def" ] }, { "id": "obj-stock-types", "statement": "Distinguish growth, value, cyclical, and defensive stocks.", "demonstrationIds": [ "d-stock-types", "d-cyclical-defensive" ] }, { "id": "obj-bonds", "statement": "Explain bonds and classify Treasury, municipal, and junk bonds.", "demonstrationIds": [ "d-bond-def", "d-bond-types" ] }, { "id": "obj-crypto", "statement": "Explain blockchain and the major cryptocurrencies.", "demonstrationIds": [ "d-blockchain", "d-crypto-coins" ] }, { "id": "obj-reit-hedge", "statement": "Explain REITs, and recall key facts about gold and Bitcoin as alternative assets.", "demonstrationIds": [ "d-reit", "d-inflation-hedge" ] } ], "demonstrations": [ { "id": "d-stock-def", "label": "Stock definition and S&P 500 return", "itemIds": [ "definition-stock", "cz-investing-201-definition-stock", "tf-df-investing-201-definition-stock", "numeric-sp500-return" ], "requiredCorrect": 4 }, { "id": "d-stock-types", "label": "Growth/value/cyclical/defensive", "itemIds": [ "pair-growth-stock", "pair-value-stock", "pair-cyclical-stock", "pair-defensive-stock", "ot-cov-stock-types-1", "ot-cov-stock-types-2", "ot-cov-stock-types-3", "ot-cov-stock-types-4" ], "requiredCorrect": 3 }, { "id": "d-cyclical-defensive", "label": "Cyclical vs defensive examples", "itemIds": [ "mcq-rw-l3-p1-equities", "tf-f-investing-201-pair-cyclical-stock", "tf-t-investing-201-pair-defensive-stock" ] }, { "id": "d-bond-def", "label": "Bond definition and inverted yield curve", "itemIds": [ "definition-bond", "cz-investing-201-definition-bond", "tf-d-investing-201-definition-bond", "mcq-rw-l3-p2-bonds" ], "requiredCorrect": 3 }, { "id": "d-bond-types", "label": "Coupon, Treasury, muni, junk", "itemIds": [ "pair-coupon", "pair-treasury", "pair-muni", "pair-junk-bond" ], "requiredCorrect": 3 }, { "id": "d-blockchain", "label": "Blockchain definition", "itemIds": [ "definition-blockchain", "czr-investing-201-definition-blockchain", "tf-df-investing-201-definition-blockchain" ] }, { "id": "d-crypto-coins", "label": "Bitcoin, Ethereum, HODLing", "itemIds": [ "cz-investing-201-fact-bitcoin", "cz-investing-201-fact-ethereum", "pair-hodl", "tf-f-investing-201-pair-hodl" ], "requiredCorrect": 3 }, { "id": "d-reit", "label": "REIT definition and payout rule", "itemIds": [ "definition-reit", "czr-investing-201-definition-reit", "mcq-rw-l3-p3-alt", "tf-df-investing-201-definition-reit" ], "requiredCorrect": 3 }, { "id": "d-inflation-hedge", "label": "Gold and bitcoin as stores of value", "itemIds": [ "cz-investing-201-fact-gold-hedge", "cz-investing-201-fact-bitcoin" ] } ], "objectiveTests": [ { "id": "test-equity-basics", "objectiveId": "obj-equity-basics", "title": "Stock ownership & S&P 500 return", "mcqIds": [ "ot-equity-basics-1", "ot-equity-basics-2", "ot-equity-basics-3", "ot-equity-basics-4", "ot-equity-basics-5" ] }, { "id": "test-stock-types", "objectiveId": "obj-stock-types", "title": "Growth, value, cyclical, defensive", "mcqIds": [ "mcq-rw-l3-p1-equities", "ot-stock-types-1", "ot-stock-types-2", "ot-stock-types-3", "ot-stock-types-4", "ot-cov-stock-types-1", "ot-cov-stock-types-2", "ot-cov-stock-types-3", "ot-cov-stock-types-4" ] }, { "id": "test-bonds", "objectiveId": "obj-bonds", "title": "Bonds: coupon, Treasury, muni, junk", "mcqIds": [ "ot-bonds-1", "ot-bonds-2", "ot-bonds-3", "ot-bonds-4", "ot-bonds-5" ] }, { "id": "test-crypto", "objectiveId": "obj-crypto", "title": "Blockchain & cryptocurrencies", "mcqIds": [ "ot-crypto-1", "ot-crypto-2", "ot-crypto-3", "ot-crypto-4", "ot-crypto-5" ] }, { "id": "test-reit-hedge", "objectiveId": "obj-reit-hedge", "title": "REITs & inflation hedges", "mcqIds": [ "mcq-rw-l3-p3-alt", "ot-reit-hedge-1", "ot-reit-hedge-2", "ot-reit-hedge-3", "ot-reit-hedge-4" ] } ] }, { "id": "l4-value-investing", "title": "Value Investing", "studyGuidePath": "/packs/investing-201/guides/l4-value-investing.md", "parts": [ { "id": "l4-p1-graham", "title": "Graham and Buffett", "studyGuideAnchor": "graham-and-buffett", "itemIds": [ "fact-graham", "definition-mr-market", "definition-intrinsic-value", "fact-grahams-pillars", "fact-buffett", "fact-buffett-young", "mcq-rw-l4-p1-graham", "czr-investing-201-definition-mr-market", "czr-investing-201-definition-intrinsic-value", "cz-investing-201-fact-buffett-young", "tf-df-investing-201-definition-mr-market", "tf-d-investing-201-definition-intrinsic-value", "concept-rw-investing-201-mr-market", "concept-rw-investing-201-intrinsic-value", "ot-mrmkt-1", "ot-mrmkt-2", "ot-mrmkt-3", "ot-mrmkt-4", "ot-mrmkt-5", "ot-buffett-1", "ot-buffett-2", "ot-buffett-3", "ot-buffett-5", "fi-ot-mrmkt-1" ], "order": 1 }, { "id": "l4-p2-margin", "title": "Margin of safety and ROIC", "studyGuideAnchor": "margin-of-safety-and-roic", "itemIds": [ "definition-margin-of-safety", "fact-margin-example", "numeric-margin-min", "definition-roic", "fact-roic-thresholds", "numeric-roic-good", "definition-moat", "mcq-rw-l4-p2-margin", "czr-investing-201-definition-margin-of-safety", "czr-investing-201-definition-roic", "czr-investing-201-definition-moat", "tf-d-investing-201-definition-margin-of-safety", "tf-d-investing-201-definition-roic", "tf-d-investing-201-definition-moat", "concept-rw-investing-201-roic", "ot-margin-1", "ot-margin-2", "ot-margin-3", "ot-margin-4", "ot-margin-5", "ot-roic-1", "ot-roic-3", "ot-moat-1", "ot-moat-2", "ot-moat-3", "ot-moat-4", "ot-moat-5", "ot-roic-5", "ot-roic-6", "fi-mcq-rw-l4-p2-margin", "fi-ot-margin-1", "fi-ot-margin-5" ], "order": 2 } ], "order": 4, "objectives": [ { "id": "obj-mr-market-intrinsic", "statement": "Explain Graham's Mr. Market metaphor and the concept of intrinsic value.", "demonstrationIds": [ "d-mr-market", "d-intrinsic-value" ] }, { "id": "obj-buffett", "statement": "Trace how Buffett's approach evolved from Graham-style bargains to quality businesses.", "demonstrationIds": [ "d-buffett" ] }, { "id": "obj-margin-of-safety", "statement": "Explain the margin of safety and the minimum discount value investors demand.", "demonstrationIds": [ "d-margin" ] }, { "id": "obj-roic", "statement": "Define ROIC, its formula, and the preferred threshold for a quality business.", "demonstrationIds": [ "d-roic-def", "d-roic-apply" ] }, { "id": "obj-moat", "statement": "Explain the economic moat as a durable competitive advantage.", "demonstrationIds": [ "d-moat" ] } ], "demonstrations": [ { "id": "d-mr-market", "label": "Mr. Market metaphor", "itemIds": [ "definition-mr-market", "czr-investing-201-definition-mr-market", "tf-df-investing-201-definition-mr-market" ] }, { "id": "d-intrinsic-value", "label": "Intrinsic value", "itemIds": [ "definition-intrinsic-value", "czr-investing-201-definition-intrinsic-value", "tf-d-investing-201-definition-intrinsic-value" ] }, { "id": "d-buffett", "label": "Buffett's evolution and early life", "itemIds": [ "mcq-rw-l4-p1-graham", "cz-investing-201-fact-buffett-young" ] }, { "id": "d-margin", "label": "Margin of safety and minimum discount", "itemIds": [ "definition-margin-of-safety", "czr-investing-201-definition-margin-of-safety", "tf-d-investing-201-definition-margin-of-safety", "numeric-margin-min" ], "requiredCorrect": 4 }, { "id": "d-roic-def", "label": "ROIC definition", "itemIds": [ "definition-roic", "czr-investing-201-definition-roic", "tf-d-investing-201-definition-roic" ] }, { "id": "d-roic-apply", "label": "ROIC formula and quality threshold", "itemIds": [ "mcq-rw-l4-p2-margin", "numeric-roic-good" ] }, { "id": "d-moat", "label": "Economic moat", "itemIds": [ "definition-moat", "czr-investing-201-definition-moat", "tf-d-investing-201-definition-moat" ] } ], "objectiveTests": [ { "id": "test-mr-market-intrinsic", "objectiveId": "obj-mr-market-intrinsic", "title": "Mr. Market & Intrinsic Value", "mcqIds": [ "ot-mrmkt-1", "ot-mrmkt-2", "ot-mrmkt-3", "ot-mrmkt-4", "ot-mrmkt-5" ] }, { "id": "test-buffett", "objectiveId": "obj-buffett", "title": "Buffett's Evolution", "mcqIds": [ "mcq-rw-l4-p1-graham", "ot-buffett-1", "ot-buffett-3", "ot-buffett-5", "ot-moat-1" ] }, { "id": "test-margin-of-safety", "objectiveId": "obj-margin-of-safety", "title": "Margin of Safety", "mcqIds": [ "ot-margin-1", "ot-margin-2", "ot-margin-3", "ot-margin-4", "ot-margin-5" ] }, { "id": "test-roic", "objectiveId": "obj-roic", "title": "ROIC", "mcqIds": [ "mcq-rw-l4-p2-margin", "ot-roic-1", "ot-roic-3", "ot-roic-5", "ot-roic-6" ] }, { "id": "test-moat", "objectiveId": "obj-moat", "title": "Economic Moat", "mcqIds": [ "ot-moat-1", "ot-moat-2", "ot-moat-3", "ot-moat-4", "ot-moat-5" ] } ] }, { "id": "l5-statements", "title": "Reading Financial Statements", "studyGuidePath": "/packs/investing-201/guides/l5-statements.md", "parts": [ { "id": "l5-p1-income", "title": "The income statement", "studyGuideAnchor": "the-income-statement", "itemIds": [ "fact-income-statement", "pair-revenue", "pair-net-income", "definition-ebitda", "pair-eps", "definition-gross-margin", "pair-cogs", "mcq-rw-l5-p1-income", "czr-investing-201-definition-ebitda", "cz-investing-201-definition-gross-margin", "tf-t-investing-201-pair-revenue", "tf-f-investing-201-pair-net-income", "tf-t-investing-201-pair-eps", "tf-d-investing-201-definition-ebitda", "tf-d-investing-201-definition-gross-margin", "concept-rw-investing-201-income-statement", "ot-income-1", "ot-income-2", "ot-income-3", "ot-income-4", "ot-prof-1", "ot-prof-2", "ot-prof-3", "ot-prof-4", "ot-prof-5", "fi-mcq-rw-l5-p1-income", "fi-ot-prof-2", "fi-ot-prof-4", "fi-ot-prof-5", "ot-cov-income-statement-1", "ot-cov-income-statement-2" ], "order": 1 }, { "id": "l5-p2-balance", "title": "The balance sheet", "studyGuideAnchor": "the-balance-sheet", "itemIds": [ "fact-balance-sheet", "definition-balance-equation", "pair-assets", "pair-liabilities", "definition-current-ratio", "definition-debt-to-equity", "fact-balance-footnotes", "mcq-rw-l5-p2-balance", "czr-investing-201-definition-balance-equation", "czr-investing-201-definition-current-ratio", "czr-investing-201-definition-debt-to-equity", "tf-d-investing-201-definition-balance-equation", "tf-d-investing-201-definition-current-ratio", "tf-d-investing-201-definition-debt-to-equity", "concept-rw-investing-201-balance-sheet", "ot-bal-1", "ot-bal-2", "ot-bal-3", "ot-bal-4", "ot-liq-1", "ot-liq-2", "ot-liq-3", "ot-liq-4", "ot-liq-5", "fi-mcq-rw-l5-p2-balance", "fi-ot-liq-1", "fi-ot-liq-3" ], "order": 2 }, { "id": "l5-p3-cashflow", "title": "The cash flow statement", "studyGuideAnchor": "the-cash-flow-statement", "itemIds": [ "fact-cash-flow-statement", "pair-ocf", "pair-investing-cf", "pair-financing-cf", "definition-fcf", "fact-fcf-importance", "mcq-rw-l5-p3-cashflow", "czr-investing-201-definition-fcf", "tf-t-investing-201-pair-ocf", "tf-f-investing-201-pair-investing-cf", "tf-f-investing-201-pair-financing-cf", "tf-d-investing-201-definition-fcf", "concept-rw-investing-201-cash-flow-statement", "ot-cf-1", "ot-cf-2", "ot-cf-3", "ot-cf-4", "fi-ot-cf-1", "fi-ot-cf-2", "fi-ot-cf-3" ], "order": 3 } ], "order": 5, "objectives": [ { "id": "obj-income-statement", "statement": "Read the income statement: revenue, net income, EPS, and COGS.", "demonstrationIds": [ "d-income-lines", "d-income-check" ] }, { "id": "obj-profitability", "statement": "Explain EBITDA and gross margin as profitability measures.", "demonstrationIds": [ "d-ebitda", "d-gross-margin" ] }, { "id": "obj-balance-sheet", "statement": "Apply the accounting equation and distinguish assets from liabilities.", "demonstrationIds": [ "d-accounting-eq", "d-assets-liabilities" ] }, { "id": "obj-liquidity-leverage", "statement": "Interpret the current ratio and debt-to-equity ratio.", "demonstrationIds": [ "d-current-ratio", "d-debt-equity" ] }, { "id": "obj-cash-flow", "statement": "Distinguish the three cash-flow sections and interpret free cash flow.", "demonstrationIds": [ "d-cf-sections", "d-fcf" ] } ], "demonstrations": [ { "id": "d-income-lines", "label": "Revenue, net income, EPS, COGS", "itemIds": [ "pair-revenue", "pair-net-income", "pair-eps", "pair-cogs", "ot-cov-income-statement-1", "ot-cov-income-statement-2" ], "requiredCorrect": 3 }, { "id": "d-income-check", "label": "Income-statement T/F and the key number", "itemIds": [ "tf-t-investing-201-pair-revenue", "tf-f-investing-201-pair-net-income", "tf-t-investing-201-pair-eps", "mcq-rw-l5-p1-income" ], "requiredCorrect": 3 }, { "id": "d-ebitda", "label": "EBITDA", "itemIds": [ "definition-ebitda", "czr-investing-201-definition-ebitda", "tf-d-investing-201-definition-ebitda" ] }, { "id": "d-gross-margin", "label": "Gross margin", "itemIds": [ "definition-gross-margin", "cz-investing-201-definition-gross-margin", "tf-d-investing-201-definition-gross-margin" ] }, { "id": "d-accounting-eq", "label": "Accounting equation", "itemIds": [ "definition-balance-equation", "czr-investing-201-definition-balance-equation", "tf-d-investing-201-definition-balance-equation" ] }, { "id": "d-assets-liabilities", "label": "Assets, liabilities, current assets", "itemIds": [ "pair-assets", "pair-liabilities", "mcq-rw-l5-p2-balance" ] }, { "id": "d-current-ratio", "label": "Current ratio", "itemIds": [ "definition-current-ratio", "czr-investing-201-definition-current-ratio", "tf-d-investing-201-definition-current-ratio" ] }, { "id": "d-debt-equity", "label": "Debt-to-equity", "itemIds": [ "definition-debt-to-equity", "czr-investing-201-definition-debt-to-equity", "tf-d-investing-201-definition-debt-to-equity" ] }, { "id": "d-cf-sections", "label": "Operating/investing/financing cash flow", "itemIds": [ "pair-ocf", "pair-investing-cf", "pair-financing-cf", "tf-t-investing-201-pair-ocf" ], "requiredCorrect": 3 }, { "id": "d-fcf", "label": "Free cash flow and the net-income red flag", "itemIds": [ "definition-fcf", "czr-investing-201-definition-fcf", "tf-d-investing-201-definition-fcf", "mcq-rw-l5-p3-cashflow" ], "requiredCorrect": 3 } ], "objectiveTests": [ { "id": "test-income-statement", "objectiveId": "obj-income-statement", "title": "Reading the Income Statement", "mcqIds": [ "mcq-rw-l5-p1-income", "ot-income-1", "ot-income-2", "ot-income-3", "ot-income-4", "ot-cov-income-statement-1", "ot-cov-income-statement-2" ] }, { "id": "test-profitability", "objectiveId": "obj-profitability", "title": "EBITDA & Gross Margin", "mcqIds": [ "ot-prof-1", "ot-prof-2", "ot-prof-3", "ot-prof-4", "ot-prof-5" ] }, { "id": "test-balance-sheet", "objectiveId": "obj-balance-sheet", "title": "The Balance Sheet", "mcqIds": [ "mcq-rw-l5-p2-balance", "ot-bal-1", "ot-bal-2", "ot-bal-3", "ot-bal-4" ] }, { "id": "test-liquidity-leverage", "objectiveId": "obj-liquidity-leverage", "title": "Current Ratio & Debt-to-Equity", "mcqIds": [ "ot-liq-1", "ot-liq-2", "ot-liq-3", "ot-liq-4", "ot-liq-5" ] }, { "id": "test-cash-flow", "objectiveId": "obj-cash-flow", "title": "Cash Flow & Free Cash Flow", "mcqIds": [ "mcq-rw-l5-p3-cashflow", "ot-cf-1", "ot-cf-2", "ot-cf-3", "ot-cf-4" ] } ] }, { "id": "l6-dcf", "title": "Projecting Cash Flows: The DCF Model", "studyGuidePath": "/packs/investing-201/guides/l6-dcf.md", "parts": [ { "id": "l6-p1-concepts", "title": "DCF concepts", "studyGuideAnchor": "dcf-concepts", "itemIds": [ "fact-dcf", "definition-time-value", "definition-wacc", "definition-terminal-value", "fact-dcf-formula", "numeric-wacc-range", "mcq-rw-l6-p1-concepts", "czr-investing-201-definition-time-value", "cz-investing-201-definition-wacc", "czr-investing-201-definition-terminal-value", "tf-d-investing-201-definition-time-value", "tf-df-investing-201-definition-wacc", "tf-df-investing-201-definition-terminal-value", "concept-rw-investing-201-wacc-weighted-average-cost-of-capital", "concept-rw-investing-201-terminal-value", "ot-tvm-1", "ot-tvm-2", "ot-tvm-3", "ot-tvm-4", "ot-tvm-5", "ot-wacc-1", "ot-wacc-2", "ot-wacc-3", "ot-wacc-4", "ot-wacc-5", "ot-tv-1", "ot-tv-3", "ot-tv-5", "fi-ot-tvm-1", "fi-ot-tvm-4", "fi-ot-wacc-2" ], "order": 1 }, { "id": "l6-p2-steps", "title": "DCF steps and pitfalls", "studyGuideAnchor": "dcf-steps-and-pitfalls", "itemIds": [ "fact-dcf-step1", "fact-dcf-wacc-step", "fact-gordon-growth", "fact-exit-multiple", "fact-ev-to-equity", "definition-enterprise-value", "fact-dcf-garbage", "czr-investing-201-definition-enterprise-value", "cz-investing-201-fact-gordon-growth", "mcq-c-investing-201-fact-gordon-growth", "tf-d-investing-201-definition-enterprise-value", "concept-rw-investing-201-gordon-growth-model", "concept-rw-investing-201-exit-multiple-method", "concept-rw-investing-201-enterprise-value", "ot-tv-2", "ot-ev-1", "ot-ev-2", "ot-ev-3", "ot-ev-4", "ot-ev-5" ], "order": 2 } ], "order": 6, "objectives": [ { "id": "obj-time-value", "statement": "Explain the time value of money as the foundation of a DCF.", "demonstrationIds": [ "d-time-value" ] }, { "id": "obj-wacc", "statement": "Define WACC and recall its typical range for established firms.", "demonstrationIds": [ "d-wacc" ] }, { "id": "obj-terminal-value", "statement": "Explain terminal value and how the Gordon Growth model estimates it.", "demonstrationIds": [ "d-terminal", "d-gordon" ] }, { "id": "obj-enterprise-value", "statement": "Define enterprise value as the true cost to acquire a company.", "demonstrationIds": [ "d-ev" ] } ], "demonstrations": [ { "id": "d-time-value", "label": "Time value of money", "itemIds": [ "definition-time-value", "czr-investing-201-definition-time-value", "tf-d-investing-201-definition-time-value" ] }, { "id": "d-wacc", "label": "WACC and typical range", "itemIds": [ "definition-wacc", "cz-investing-201-definition-wacc", "tf-df-investing-201-definition-wacc", "numeric-wacc-range" ], "requiredCorrect": 4 }, { "id": "d-terminal", "label": "Terminal value", "itemIds": [ "definition-terminal-value", "czr-investing-201-definition-terminal-value", "tf-df-investing-201-definition-terminal-value" ] }, { "id": "d-gordon", "label": "Gordon Growth model and the DCF's key drivers", "itemIds": [ "cz-investing-201-fact-gordon-growth", "mcq-c-investing-201-fact-gordon-growth", "mcq-rw-l6-p1-concepts" ] }, { "id": "d-ev", "label": "Enterprise value", "itemIds": [ "definition-enterprise-value", "czr-investing-201-definition-enterprise-value", "tf-d-investing-201-definition-enterprise-value" ] } ], "objectiveTests": [ { "id": "test-time-value", "objectiveId": "obj-time-value", "title": "Time Value of Money", "mcqIds": [ "ot-tvm-1", "ot-tvm-2", "ot-tvm-3", "ot-tvm-4", "ot-tvm-5" ] }, { "id": "test-wacc", "objectiveId": "obj-wacc", "title": "WACC & Its Range", "mcqIds": [ "ot-wacc-1", "ot-wacc-2", "ot-wacc-3", "ot-wacc-4", "ot-wacc-5" ] }, { "id": "test-terminal-value", "objectiveId": "obj-terminal-value", "title": "Terminal Value & Gordon Growth", "mcqIds": [ "mcq-c-investing-201-fact-gordon-growth", "ot-tv-1", "ot-tv-2", "ot-tv-3", "ot-tv-5" ] }, { "id": "test-enterprise-value", "objectiveId": "obj-enterprise-value", "title": "Enterprise Value", "mcqIds": [ "ot-ev-1", "ot-ev-2", "ot-ev-3", "ot-ev-4", "ot-ev-5" ] } ] }, { "id": "l7-metrics", "title": "Key Valuation Metrics", "studyGuidePath": "/packs/investing-201/guides/l7-metrics.md", "parts": [ { "id": "l7-p1-multiples", "title": "The core multiples", "studyGuideAnchor": "the-core-multiples", "itemIds": [ "definition-pe", "definition-ev-ebitda", "definition-ps", "definition-peg", "definition-fcf-yield", "definition-pb", "fact-pe-context", "mcq-rw-l7-p1-multiples", "czr-investing-201-definition-pe", "czr-investing-201-definition-ps", "czr-investing-201-definition-peg", "cz-investing-201-definition-fcf-yield", "czr-investing-201-definition-pb", "tf-d-investing-201-definition-pe", "tf-d-investing-201-definition-ev-ebitda", "tf-d-investing-201-definition-ps", "tf-df-investing-201-definition-peg", "tf-d-investing-201-definition-fcf-yield", "tf-df-investing-201-definition-pb", "concept-rw-investing-201-p-e-ratio-price-to-earnings", "concept-rw-investing-201-ev-ebitda", "concept-rw-investing-201-p-s-ratio-price-to-sales", "concept-rw-investing-201-peg-ratio-price-earnings-to-growth", "concept-rw-investing-201-p-b-ratio-price-to-book", "ot-def-1", "ot-def-2", "ot-def-3", "ot-def-4", "ot-def-5", "ot-recall-1", "ot-recall-2", "ot-recall-3", "ot-recall-4", "ot-recall-5", "fi-ot-def-1", "fi-mcq-rw-l7-p1-multiples", "fi-ot-def-3", "fi-ot-recall-2" ], "order": 1 }, { "id": "l7-p2-applying", "title": "Applying the metrics", "studyGuideAnchor": "applying-the-metrics", "itemIds": [ "numeric-sp500-pe", "pair-ev-ebitda-use", "pair-ps-use", "pair-peg-use", "pair-pb-use", "mcq-metric-choice", "tf-f-investing-201-pair-ev-ebitda-use", "tf-f-investing-201-pair-ps-use", "tf-t-investing-201-pair-peg-use", "ot-choose-1", "ot-choose-2", "ot-choose-3", "ot-bench-1", "ot-bench-2", "ot-bench-3", "ot-bench-4", "ot-bench-5", "ot-choose-4", "ot-cov-choosing-metrics-1", "ot-cov-choosing-metrics-2", "ot-cov-choosing-metrics-3", "ot-cov-choosing-metrics-4" ], "order": 2 } ], "order": 7, "objectives": [ { "id": "obj-multiples-definitions", "statement": "Define the six core valuation multiples (P/E, EV/EBITDA, P/S, PEG, FCF yield, P/B) and state what each measures.", "demonstrationIds": [ "d-multiples-def-a", "d-multiples-def-b", "d-multiples-cloze", "d-multiples-tf" ] }, { "id": "obj-choosing-metrics", "statement": "Select the right multiple for a company's situation (pre-profit, banks, M&A, growth).", "demonstrationIds": [ "d-metric-use", "d-metric-choice" ] }, { "id": "obj-benchmarks", "statement": "Recall the market's benchmark P/E ratio.", "demonstrationIds": [ "d-pe-benchmark" ] } ], "demonstrations": [ { "id": "d-multiples-def-a", "label": "P/E, P/S, PEG definitions", "itemIds": [ "definition-pe", "definition-ps", "definition-peg" ] }, { "id": "d-multiples-def-b", "label": "EV/EBITDA, FCF yield, P/B definitions", "itemIds": [ "definition-ev-ebitda", "definition-fcf-yield", "definition-pb" ] }, { "id": "d-multiples-cloze", "label": "Multiple fill-in-the-blanks", "itemIds": [ "czr-investing-201-definition-pe", "czr-investing-201-definition-ps", "czr-investing-201-definition-peg", "czr-investing-201-definition-pb" ], "requiredCorrect": 3 }, { "id": "d-multiples-tf", "label": "Multiple true/false checks", "itemIds": [ "tf-d-investing-201-definition-pe", "tf-d-investing-201-definition-ps", "tf-d-investing-201-definition-ev-ebitda", "tf-d-investing-201-definition-fcf-yield" ], "requiredCorrect": 3 }, { "id": "d-metric-use", "label": "Which multiple for which situation", "itemIds": [ "pair-ev-ebitda-use", "pair-ps-use", "pair-peg-use", "pair-pb-use", "ot-cov-choosing-metrics-1", "ot-cov-choosing-metrics-2", "ot-cov-choosing-metrics-3", "ot-cov-choosing-metrics-4" ], "requiredCorrect": 3 }, { "id": "d-metric-choice", "label": "Choosing a multiple for a pre-profit or growth firm", "itemIds": [ "mcq-rw-l7-p1-multiples", "mcq-metric-choice", "tf-t-investing-201-pair-peg-use" ] }, { "id": "d-pe-benchmark", "label": "Benchmark P/E", "itemIds": [ "numeric-sp500-pe" ] } ], "objectiveTests": [ { "id": "test-multiples-definitions", "objectiveId": "obj-multiples-definitions", "title": "Defining the Six Multiples", "mcqIds": [ "ot-def-1", "ot-def-2", "ot-def-3", "ot-def-4", "ot-def-5" ] }, { "id": "test-multiples-recall", "objectiveId": "obj-multiples-definitions", "title": "Recall: Multiple Definitions", "mcqIds": [ "ot-recall-1", "ot-recall-2", "ot-recall-3", "ot-recall-4", "ot-recall-5" ] }, { "id": "test-choosing-metrics", "objectiveId": "obj-choosing-metrics", "title": "Choosing the Right Metric", "mcqIds": [ "mcq-metric-choice", "ot-choose-1", "ot-choose-2", "ot-choose-3", "ot-choose-4", "ot-cov-choosing-metrics-1", "ot-cov-choosing-metrics-2", "ot-cov-choosing-metrics-3", "ot-cov-choosing-metrics-4" ] }, { "id": "test-benchmarks", "objectiveId": "obj-benchmarks", "title": "P/E Benchmarks & Signals", "mcqIds": [ "ot-bench-1", "ot-bench-2", "ot-bench-3", "ot-bench-4", "ot-bench-5" ] } ] }, { "id": "l8-rule-72", "title": "The Rule of 72", "studyGuidePath": "/packs/investing-201/guides/l8-rule-72.md", "parts": [ { "id": "l8-p1-rule72", "title": "The Rule of 72", "studyGuideAnchor": "the-rule-of-72", "itemIds": [ "fact-rule-72", "numeric-rule72-10", "numeric-rule72-12", "numeric-rule72-8", "numeric-rule72-4", "numeric-rule72-2", "numeric-rule72-reverse", "fact-rule72-darkside", "mcq-rw-l8-p1-rule72", "ot-r72high-1", "ot-r72high-2", "ot-r72high-3", "ot-r72high-4", "ot-r72high-5", "ot-r72low-1", "ot-r72low-2", "ot-r72low-3", "ot-r72low-4", "ot-r72inv-1", "ot-r72inv-2", "ot-r72inv-3", "ot-r72inv-4", "ot-r72low-5", "fi-ot-r72high-1", "fi-ot-r72low-1", "fi-ot-r72low-2" ], "order": 1 } ], "order": 8, "objectives": [ { "id": "obj-rule72-high", "statement": "Apply the Rule of 72 at higher return rates (8-12%).", "demonstrationIds": [ "d-rule72-high" ] }, { "id": "obj-rule72-low", "statement": "Apply the Rule of 72 at low, savings-like rates (2-4%).", "demonstrationIds": [ "d-rule72-low" ] }, { "id": "obj-rule72-inverse", "statement": "Work the Rule of 72 backward to find the required return and flag implausible doubling claims.", "demonstrationIds": [ "d-rule72-inverse" ] } ], "demonstrations": [ { "id": "d-rule72-high", "label": "Doubling time at 8%, 10%, 12%", "itemIds": [ "numeric-rule72-10", "numeric-rule72-12", "numeric-rule72-8" ] }, { "id": "d-rule72-low", "label": "Doubling time at 2% and 4%", "itemIds": [ "numeric-rule72-4", "numeric-rule72-2" ] }, { "id": "d-rule72-inverse", "label": "Required return and unrealistic promises", "itemIds": [ "numeric-rule72-reverse", "mcq-rw-l8-p1-rule72" ] } ], "objectiveTests": [ { "id": "test-rule72-high", "objectiveId": "obj-rule72-high", "title": "Rule of 72 at 8-12% returns", "mcqIds": [ "ot-r72high-1", "ot-r72high-2", "ot-r72high-3", "ot-r72high-4", "ot-r72high-5" ] }, { "id": "test-rule72-low", "objectiveId": "obj-rule72-low", "title": "Rule of 72 at low savings rates", "mcqIds": [ "ot-r72low-1", "ot-r72low-2", "ot-r72low-3", "ot-r72low-4", "ot-r72low-5" ] }, { "id": "test-rule72-inverse", "objectiveId": "obj-rule72-inverse", "title": "Working the Rule of 72 backward", "mcqIds": [ "mcq-rw-l8-p1-rule72", "ot-r72inv-1", "ot-r72inv-2", "ot-r72inv-3", "ot-r72inv-4" ] } ] }, { "id": "l9-strategies", "title": "Investment Strategies", "studyGuidePath": "/packs/investing-201/guides/l9-strategies.md", "parts": [ { "id": "l9-p1-passive", "title": "Passive investing and funds", "studyGuideAnchor": "passive-investing-and-funds", "itemIds": [ "fact-buy-hold", "fact-index-beats", "definition-index-fund", "definition-etf", "pair-spy", "pair-qqq", "pair-vti", "mcq-rw-l9-p1-passive", "proc-evaluate-etf", "czr-investing-201-definition-index-fund", "czr-investing-201-definition-etf", "tf-t-investing-201-pair-spy", "tf-f-investing-201-pair-qqq", "tf-f-investing-201-pair-vti", "tf-df-investing-201-definition-index-fund", "tf-d-investing-201-definition-etf", "concept-rw-investing-201-buy-and-hold", "ot-index-etf-1", "ot-index-etf-2", "ot-index-etf-3", "ot-index-etf-4", "ot-index-etf-5", "ot-tickers-1", "ot-tickers-2", "ot-tickers-3", "ot-tickers-4", "fi-ot-index-etf-1", "fi-ot-index-etf-2", "fi-ot-index-etf-3" ], "order": 1 }, { "id": "l9-p2-active", "title": "Active styles and trading", "studyGuideAnchor": "active-styles-and-trading", "itemIds": [ "pair-growth-investing", "pair-value-investing", "definition-dividend-aristocrat", "definition-dca", "pair-day-trading", "pair-swing-trading", "pair-position-trading", "mcq-rw-l9-p2-active", "czr-investing-201-definition-dividend-aristocrat", "czr-investing-201-definition-dca", "tf-f-investing-201-pair-growth-investing", "tf-t-investing-201-pair-swing-trading", "tf-f-investing-201-pair-position-trading", "tf-df-investing-201-definition-dividend-aristocrat", "tf-df-investing-201-definition-dca", "concept-rw-investing-201-growth-investing", "concept-rw-investing-201-value-investing", "concept-rw-investing-201-dividend-investing", "concept-rw-investing-201-dollar-cost-averaging-dca", "ot-styles-1", "ot-styles-2", "ot-styles-3", "ot-styles-4", "ot-styles-5", "ot-dca-1", "ot-dca-2", "ot-dca-3", "ot-dca-4", "ot-dca-5", "ot-trading-1", "ot-trading-2", "ot-trading-3", "ot-trading-4" ], "order": 2 } ], "order": 9, "objectives": [ { "id": "obj-index-etf", "statement": "Define index funds and ETFs and how they differ.", "demonstrationIds": [ "d-index-fund", "d-etf" ] }, { "id": "obj-etf-tickers", "statement": "Match ETF tickers (SPY, QQQ, VTI) to the indexes they track.", "demonstrationIds": [ "d-tickers", "d-tickers-tf" ] }, { "id": "obj-active-styles", "statement": "Distinguish growth, value, and dividend investing.", "demonstrationIds": [ "d-active-styles", "d-dividend" ] }, { "id": "obj-dca", "statement": "Explain dollar-cost averaging and its behavioral benefit.", "demonstrationIds": [ "d-dca" ] }, { "id": "obj-trading-horizons", "statement": "Distinguish day, swing, and position trading by time horizon and risk.", "demonstrationIds": [ "d-trading", "d-trading-tf" ] } ], "demonstrations": [ { "id": "d-index-fund", "label": "Index fund", "itemIds": [ "definition-index-fund", "czr-investing-201-definition-index-fund", "tf-df-investing-201-definition-index-fund" ] }, { "id": "d-etf", "label": "ETF", "itemIds": [ "definition-etf", "czr-investing-201-definition-etf", "tf-d-investing-201-definition-etf" ] }, { "id": "d-tickers", "label": "SPY/QQQ/VTI and the Russell 2000 ticker", "itemIds": [ "pair-spy", "pair-qqq", "pair-vti", "mcq-rw-l9-p1-passive" ], "requiredCorrect": 3 }, { "id": "d-tickers-tf", "label": "Ticker true/false checks", "itemIds": [ "tf-t-investing-201-pair-spy", "tf-f-investing-201-pair-qqq", "tf-f-investing-201-pair-vti" ] }, { "id": "d-active-styles", "label": "Growth vs value investing", "itemIds": [ "pair-growth-investing", "pair-value-investing", "tf-f-investing-201-pair-growth-investing" ] }, { "id": "d-dividend", "label": "Dividend Aristocrats", "itemIds": [ "definition-dividend-aristocrat", "czr-investing-201-definition-dividend-aristocrat", "tf-df-investing-201-definition-dividend-aristocrat" ] }, { "id": "d-dca", "label": "Dollar-cost averaging", "itemIds": [ "definition-dca", "czr-investing-201-definition-dca", "tf-df-investing-201-definition-dca" ] }, { "id": "d-trading", "label": "Day/swing/position trading and day-trader outcomes", "itemIds": [ "pair-day-trading", "pair-swing-trading", "pair-position-trading", "mcq-rw-l9-p2-active" ], "requiredCorrect": 3 }, { "id": "d-trading-tf", "label": "Trading-horizon true/false checks", "itemIds": [ "tf-t-investing-201-pair-swing-trading", "tf-f-investing-201-pair-position-trading" ] } ], "objectiveTests": [ { "id": "test-index-etf", "objectiveId": "obj-index-etf", "title": "Index Funds vs. ETFs", "mcqIds": [ "ot-index-etf-1", "ot-index-etf-2", "ot-index-etf-3", "ot-index-etf-4", "ot-index-etf-5" ] }, { "id": "test-etf-tickers", "objectiveId": "obj-etf-tickers", "title": "ETF Tickers and Indexes", "mcqIds": [ "mcq-rw-l9-p1-passive", "ot-tickers-1", "ot-tickers-2", "ot-tickers-3", "ot-tickers-4" ] }, { "id": "test-active-styles", "objectiveId": "obj-active-styles", "title": "Growth, Value, Dividend", "mcqIds": [ "ot-styles-1", "ot-styles-2", "ot-styles-3", "ot-styles-4", "ot-styles-5" ] }, { "id": "test-dca", "objectiveId": "obj-dca", "title": "Dollar-Cost Averaging", "mcqIds": [ "ot-dca-1", "ot-dca-2", "ot-dca-3", "ot-dca-4", "ot-dca-5" ] }, { "id": "test-trading-horizons", "objectiveId": "obj-trading-horizons", "title": "Trading Time Horizons", "mcqIds": [ "mcq-rw-l9-p2-active", "ot-trading-1", "ot-trading-2", "ot-trading-3", "ot-trading-4" ] } ] }, { "id": "l10-sectors", "title": "Sector Rotation and the Business Cycle", "studyGuidePath": "/packs/investing-201/guides/l10-sectors.md", "parts": [ { "id": "l10-p1-cycle", "title": "The business cycle", "studyGuideAnchor": "the-business-cycle", "itemIds": [ "fact-business-cycles", "numeric-cycles-count", "numeric-avg-cycle", "definition-gics", "numeric-gics-sectors", "fact-sector-rotation", "mcq-rw-l10-p1-cycle", "czr-investing-201-definition-gics", "cz-investing-201-fact-business-cycles", "tf-df-investing-201-definition-gics", "ot-cycle-1", "ot-cycle-2", "ot-cycle-3", "ot-cycle-4", "ot-cycle-5", "ot-gics-1", "ot-gics-2", "ot-gics-3", "ot-gics-4", "fi-ot-cycle-1", "fi-ot-cycle-4", "fi-ot-gics-2" ], "order": 1 }, { "id": "l10-p2-phases", "title": "Phases, sectors, and Cramer", "studyGuideAnchor": "phases-sectors-and-cramer", "itemIds": [ "pair-early-cycle", "pair-late-cycle", "pair-recession-sectors", "fact-rate-environment", "fact-cramer", "fact-cramer-mistakes", "mcq-rw-l10-p2-phases", "tf-t-investing-201-pair-early-cycle", "tf-f-investing-201-pair-late-cycle", "tf-f-investing-201-pair-recession-sectors", "concept-rw-investing-201-early-cycle", "concept-rw-investing-201-mid-cycle", "concept-rw-investing-201-late-cycle", "concept-rw-investing-201-recession", "ot-rotation-1", "ot-rotation-2", "ot-rotation-3", "ot-rotation-4", "fi-mcq-rw-l10-p2-phases", "fi-ot-rotation-3" ], "order": 2 } ], "order": 10, "objectives": [ { "id": "obj-business-cycle", "statement": "Recall the frequency and average length of U.S. business cycles.", "demonstrationIds": [ "d-cycle-stats" ] }, { "id": "obj-gics", "statement": "Explain the GICS system and its 11 S&P 500 sectors.", "demonstrationIds": [ "d-gics", "d-gics-count" ] }, { "id": "obj-sector-rotation", "statement": "Match business-cycle phases to the sectors that outperform.", "demonstrationIds": [ "d-phase-sectors", "d-phase-tf" ] } ], "demonstrations": [ { "id": "d-cycle-stats", "label": "Number and length of business cycles", "itemIds": [ "numeric-cycles-count", "numeric-avg-cycle", "cz-investing-201-fact-business-cycles" ] }, { "id": "d-gics", "label": "What GICS is", "itemIds": [ "definition-gics", "czr-investing-201-definition-gics", "tf-df-investing-201-definition-gics" ] }, { "id": "d-gics-count", "label": "Number of sectors and non-sector spotting", "itemIds": [ "numeric-gics-sectors", "mcq-rw-l10-p1-cycle" ] }, { "id": "d-phase-sectors", "label": "Phase-to-sector mapping", "itemIds": [ "pair-early-cycle", "pair-late-cycle", "pair-recession-sectors", "mcq-rw-l10-p2-phases" ], "requiredCorrect": 3 }, { "id": "d-phase-tf", "label": "Phase true/false checks", "itemIds": [ "tf-t-investing-201-pair-early-cycle", "tf-f-investing-201-pair-late-cycle", "tf-f-investing-201-pair-recession-sectors" ] } ], "objectiveTests": [ { "id": "test-business-cycle", "objectiveId": "obj-business-cycle", "title": "Business Cycle Length & Frequency", "mcqIds": [ "ot-cycle-1", "ot-cycle-2", "ot-cycle-3", "ot-cycle-4", "ot-cycle-5" ] }, { "id": "test-gics", "objectiveId": "obj-gics", "title": "GICS and the 11 Sectors", "mcqIds": [ "mcq-rw-l10-p1-cycle", "ot-gics-1", "ot-gics-2", "ot-gics-3", "ot-gics-4" ] }, { "id": "test-sector-rotation", "objectiveId": "obj-sector-rotation", "title": "Phases and Leading Sectors", "mcqIds": [ "mcq-rw-l10-p2-phases", "ot-rotation-1", "ot-rotation-2", "ot-rotation-3", "ot-rotation-4" ] } ] }, { "id": "l11-mag7", "title": "The Magnificent Seven", "studyGuidePath": "/packs/investing-201/guides/l11-mag7.md", "parts": [ { "id": "l11-p1-overview", "title": "The Mag 7 phenomenon", "studyGuideAnchor": "the-mag-7-phenomenon", "itemIds": [ "fact-mag7", "fact-mag7-companies", "fact-mag7-dominance", "numeric-mag7-count", "numeric-nvidia-5t", "pair-mag7-coiner", "numeric-hartnett-year", "mcq-rw-l11-p1-overview", "cz-investing-201-fact-mag7", "tf-f-investing-201-pair-mag7-coiner", "ot-mag7-origin-1", "ot-mag7-origin-2", "ot-mag7-origin-3", "ot-mag7-origin-4", "fi-ot-mag7-origin-1", "fi-ot-mag7-origin-3" ], "order": 1 }, { "id": "l11-p2-breakdown", "title": "Company breakdowns", "studyGuideAnchor": "company-breakdowns", "itemIds": [ "pair-apple-moat", "pair-microsoft-moat", "pair-amazon-moat", "pair-alphabet-moat", "pair-meta-moat", "pair-nvidia-moat", "pair-tesla-moat", "fact-company-framework", "mcq-rw-l11-p2-breakdown", "concept-rw-investing-201-nvidia", "concept-rw-investing-201-apple", "concept-rw-investing-201-amazon", "concept-rw-investing-201-tesla", "concept-rw-investing-201-meta", "ot-moats-a-1", "ot-moats-a-2", "ot-moats-a-3", "ot-moats-a-4", "ot-moats-a-5", "ot-moats-b-1", "ot-moats-b-2", "ot-moats-b-3", "ot-moats-b-4", "fi-ot-moats-a-2", "fi-ot-moats-a-3", "fi-ot-moats-b-1", "fi-ot-moats-b-2" ], "order": 2 } ], "order": 11, "objectives": [ { "id": "obj-mag7-origin", "statement": "Recall the origin, naming, and scale of the Magnificent Seven.", "demonstrationIds": [ "d-mag7-facts", "d-mag7-scale" ] }, { "id": "obj-mag7-moats-a", "statement": "Identify the competitive moats of Apple, Microsoft, Amazon, and Alphabet.", "demonstrationIds": [ "d-moats-a" ] }, { "id": "obj-mag7-moats-b", "statement": "Identify the moats of Meta, Nvidia, and Tesla and Apple's key metric to watch.", "demonstrationIds": [ "d-moats-b" ] } ], "demonstrations": [ { "id": "d-mag7-facts", "label": "Count, coiner, and year", "itemIds": [ "numeric-mag7-count", "pair-mag7-coiner", "numeric-hartnett-year", "cz-investing-201-fact-mag7" ], "requiredCorrect": 3 }, { "id": "d-mag7-scale", "label": "Nvidia's cap and combined market cap", "itemIds": [ "numeric-nvidia-5t", "mcq-rw-l11-p1-overview", "tf-f-investing-201-pair-mag7-coiner" ] }, { "id": "d-moats-a", "label": "Apple, Microsoft, Amazon, Alphabet moats", "itemIds": [ "pair-apple-moat", "pair-microsoft-moat", "pair-amazon-moat", "pair-alphabet-moat" ], "requiredCorrect": 3 }, { "id": "d-moats-b", "label": "Meta, Nvidia, Tesla moats and Apple's metric", "itemIds": [ "pair-meta-moat", "pair-nvidia-moat", "pair-tesla-moat", "mcq-rw-l11-p2-breakdown" ], "requiredCorrect": 4 } ], "objectiveTests": [ { "id": "test-mag7-origin", "objectiveId": "obj-mag7-origin", "title": "Mag 7 Origin & Scale", "mcqIds": [ "mcq-rw-l11-p1-overview", "ot-mag7-origin-1", "ot-mag7-origin-2", "ot-mag7-origin-3", "ot-mag7-origin-4" ] }, { "id": "test-mag7-moats-a", "objectiveId": "obj-mag7-moats-a", "title": "Moats: Apple/MSFT/AMZN/GOOGL", "mcqIds": [ "ot-moats-a-1", "ot-moats-a-2", "ot-moats-a-3", "ot-moats-a-4", "ot-moats-a-5" ] }, { "id": "test-mag7-moats-b", "objectiveId": "obj-mag7-moats-b", "title": "Moats: Meta/Nvidia/Tesla", "mcqIds": [ "mcq-rw-l11-p2-breakdown", "ot-moats-b-1", "ot-moats-b-2", "ot-moats-b-3", "ot-moats-b-4" ] } ] }, { "id": "l12-vocabulary", "title": "Essential Investing Vocabulary", "studyGuidePath": "/packs/investing-201/guides/l12-vocabulary.md", "parts": [ { "id": "l12-p1-basics", "title": "Market basics", "studyGuideAnchor": "market-basics", "itemIds": [ "definition-bull-market", "definition-bear-market", "definition-correction", "definition-volatility-vix", "fact-market-cap-tiers", "definition-blue-chip", "pair-dividend-yield", "definition-ipo", "mcq-rw-l12-p1-basics", "czr-investing-201-definition-bull-market", "czr-investing-201-definition-bear-market", "czr-investing-201-definition-correction", "czr-investing-201-definition-volatility-vix", "czr-investing-201-definition-blue-chip", "czr-investing-201-definition-ipo", "tf-f-investing-201-pair-dividend-yield", "tf-df-investing-201-definition-bull-market", "tf-d-investing-201-definition-bear-market", "tf-df-investing-201-definition-correction", "tf-d-investing-201-definition-volatility-vix", "tf-d-investing-201-definition-blue-chip", "tf-df-investing-201-definition-ipo", "ot-market-conditions-1", "ot-market-conditions-2", "ot-market-conditions-3", "ot-market-conditions-4", "ot-basic-terms-1", "ot-basic-terms-2", "ot-basic-terms-3", "ot-basic-terms-4", "ot-basic-terms-5", "fi-ot-basic-terms-1", "fi-ot-basic-terms-2", "fi-ot-basic-terms-3", "fi-ot-basic-terms-4" ], "order": 1 }, { "id": "l12-p2-advanced", "title": "Advanced terms", "studyGuideAnchor": "advanced-terms", "itemIds": [ "definition-alpha", "definition-beta", "definition-float", "definition-short-selling", "definition-hedge", "definition-options", "definition-buyback", "pair-bps", "mcq-rw-l12-p2-advanced", "cz-investing-201-definition-alpha", "cz-investing-201-definition-beta", "czr-investing-201-definition-float", "czr-investing-201-definition-short-selling", "czr-investing-201-definition-hedge", "czr-investing-201-definition-options", "czr-investing-201-definition-buyback", "tf-df-investing-201-definition-alpha", "tf-df-investing-201-definition-beta", "tf-df-investing-201-definition-float", "tf-d-investing-201-definition-short-selling", "tf-d-investing-201-definition-hedge", "tf-df-investing-201-definition-options", "tf-d-investing-201-definition-buyback", "ot-advanced-terms-1", "ot-advanced-terms-2", "ot-advanced-terms-3", "ot-advanced-terms-4", "ot-advanced-terms-5", "ot-risk-tools-1", "ot-risk-tools-2", "ot-risk-tools-3", "ot-risk-tools-4" ], "order": 2 }, { "id": "l12-p3-indexes", "title": "Indexes and benchmarks", "studyGuideAnchor": "indexes-and-benchmarks", "itemIds": [ "definition-sp500", "definition-djia", "pair-nasdaq-composite", "pair-nasdaq-100", "definition-russell-2000", "fact-index-weighting", "mcq-rw-l12-p3-indexes", "czr-investing-201-definition-sp500", "czr-investing-201-definition-djia", "czr-investing-201-definition-russell-2000", "tf-df-investing-201-definition-sp500", "tf-df-investing-201-definition-djia", "tf-d-investing-201-definition-russell-2000", "concept-rw-investing-201-s-p-500", "concept-rw-investing-201-dow-jones-industrial-average", "concept-rw-investing-201-nasdaq-composite", "concept-rw-investing-201-nasdaq-100", "concept-rw-investing-201-russell-2000", "ot-indexes-1", "ot-indexes-2", "ot-indexes-3", "ot-indexes-4", "fi-ot-indexes-1", "fi-ot-indexes-2", "fi-ot-indexes-3" ], "order": 3 } ], "order": 12, "objectives": [ { "id": "obj-market-conditions", "statement": "Distinguish bull markets, bear markets, and corrections by depth of decline.", "demonstrationIds": [ "d-market-phases-def", "d-market-phases-check" ] }, { "id": "obj-basic-terms", "statement": "Define core market terms: volatility/VIX, blue chip, dividend yield, and IPO.", "demonstrationIds": [ "d-basic-terms-def", "d-basic-terms-check" ] }, { "id": "obj-advanced-terms", "statement": "Explain advanced concepts: alpha, beta, float, and short selling.", "demonstrationIds": [ "d-adv-def", "d-adv-check" ] }, { "id": "obj-risk-tools", "statement": "Explain hedging, options, buybacks, and basis points.", "demonstrationIds": [ "d-risk-def", "d-risk-check" ] }, { "id": "obj-indexes", "statement": "Distinguish the major indexes (S&P 500, Dow, Nasdaq, Russell 2000) and their weighting.", "demonstrationIds": [ "d-index-def", "d-index-check" ] } ], "demonstrations": [ { "id": "d-market-phases-def", "label": "Bull, bear, correction definitions", "itemIds": [ "definition-bull-market", "definition-bear-market", "definition-correction" ] }, { "id": "d-market-phases-check", "label": "Market-phase cloze and the correction/bear line", "itemIds": [ "czr-investing-201-definition-bull-market", "czr-investing-201-definition-bear-market", "czr-investing-201-definition-correction", "mcq-rw-l12-p1-basics" ], "requiredCorrect": 3 }, { "id": "d-basic-terms-def", "label": "Volatility/VIX, blue chip, IPO, dividend yield", "itemIds": [ "definition-volatility-vix", "definition-blue-chip", "definition-ipo", "pair-dividend-yield" ], "requiredCorrect": 3 }, { "id": "d-basic-terms-check", "label": "Basic-term fill-in-the-blanks", "itemIds": [ "czr-investing-201-definition-volatility-vix", "czr-investing-201-definition-blue-chip", "czr-investing-201-definition-ipo" ] }, { "id": "d-adv-def", "label": "Alpha, beta, float, short selling", "itemIds": [ "definition-alpha", "definition-beta", "definition-float", "definition-short-selling" ], "requiredCorrect": 3 }, { "id": "d-adv-check", "label": "Advanced-term fill-in-the-blanks", "itemIds": [ "cz-investing-201-definition-alpha", "cz-investing-201-definition-beta", "czr-investing-201-definition-float", "czr-investing-201-definition-short-selling" ], "requiredCorrect": 3 }, { "id": "d-risk-def", "label": "Hedge, options, buyback, basis points", "itemIds": [ "definition-hedge", "definition-options", "definition-buyback", "pair-bps" ], "requiredCorrect": 3 }, { "id": "d-risk-check", "label": "Risk-tool cloze and the basis-points math", "itemIds": [ "czr-investing-201-definition-hedge", "czr-investing-201-definition-options", "czr-investing-201-definition-buyback", "mcq-rw-l12-p2-advanced" ], "requiredCorrect": 3 }, { "id": "d-index-def", "label": "S&P 500, Dow, Russell 2000, Nasdaq Composite", "itemIds": [ "definition-sp500", "definition-djia", "definition-russell-2000", "pair-nasdaq-composite" ], "requiredCorrect": 3 }, { "id": "d-index-check", "label": "Nasdaq 100, index cloze, price-weighting", "itemIds": [ "pair-nasdaq-100", "czr-investing-201-definition-sp500", "czr-investing-201-definition-djia", "mcq-rw-l12-p3-indexes" ], "requiredCorrect": 3 } ], "objectiveTests": [ { "id": "test-market-conditions", "objectiveId": "obj-market-conditions", "title": "Bull, Bear & Correction", "mcqIds": [ "mcq-rw-l12-p1-basics", "ot-market-conditions-1", "ot-market-conditions-2", "ot-market-conditions-3", "ot-market-conditions-4" ] }, { "id": "test-basic-terms", "objectiveId": "obj-basic-terms", "title": "Core Market Terms", "mcqIds": [ "ot-basic-terms-1", "ot-basic-terms-2", "ot-basic-terms-3", "ot-basic-terms-4", "ot-basic-terms-5" ] }, { "id": "test-advanced-terms", "objectiveId": "obj-advanced-terms", "title": "Alpha, Beta, Float, Shorts", "mcqIds": [ "ot-advanced-terms-1", "ot-advanced-terms-2", "ot-advanced-terms-3", "ot-advanced-terms-4", "ot-advanced-terms-5" ] }, { "id": "test-risk-tools", "objectiveId": "obj-risk-tools", "title": "Hedges, Options & Buybacks", "mcqIds": [ "mcq-rw-l12-p2-advanced", "ot-risk-tools-1", "ot-risk-tools-2", "ot-risk-tools-3", "ot-risk-tools-4" ] }, { "id": "test-indexes", "objectiveId": "obj-indexes", "title": "Major Indexes & Weighting", "mcqIds": [ "mcq-rw-l12-p3-indexes", "ot-indexes-1", "ot-indexes-2", "ot-indexes-3", "ot-indexes-4" ] } ] }, { "id": "l13-future", "title": "The Future of Finance", "studyGuidePath": "/packs/investing-201/guides/l13-future.md", "parts": [ { "id": "l13-p1-future", "title": "The future of finance", "studyGuideAnchor": "the-future-of-finance", "itemIds": [ "fact-ai-trading", "numeric-algo-pct", "definition-defi", "fact-tokenization", "fact-cbdc", "definition-esg", "fact-democratization", "mcq-rw-l13-p1-future", "czr-investing-201-definition-defi", "czr-investing-201-definition-esg", "tf-df-investing-201-definition-defi", "tf-d-investing-201-definition-esg", "concept-rw-investing-201-defi", "concept-rw-investing-201-tokenization", "concept-rw-investing-201-central-bank-digital-currencies", "concept-rw-investing-201-esg-investing", "ot-algo-cbdc-1", "ot-algo-cbdc-2", "ot-algo-cbdc-3", "ot-algo-cbdc-4", "ot-defi-1", "ot-defi-2", "ot-defi-3", "ot-defi-4", "ot-defi-5", "ot-esg-1", "ot-esg-2", "ot-esg-3", "ot-esg-4", "ot-esg-5", "fi-ot-algo-cbdc-3" ], "order": 1 } ], "order": 13, "objectives": [ { "id": "obj-algo-cbdc", "statement": "Recall the scale of algorithmic trading and the state of central-bank digital currencies.", "demonstrationIds": [ "d-algo-cbdc" ] }, { "id": "obj-defi", "statement": "Explain decentralized finance (DeFi).", "demonstrationIds": [ "d-defi" ] }, { "id": "obj-esg", "statement": "Explain ESG investing.", "demonstrationIds": [ "d-esg" ] } ], "demonstrations": [ { "id": "d-algo-cbdc", "label": "Algo-trading share and operational CBDC", "itemIds": [ "numeric-algo-pct", "mcq-rw-l13-p1-future" ] }, { "id": "d-defi", "label": "DeFi", "itemIds": [ "definition-defi", "czr-investing-201-definition-defi", "tf-df-investing-201-definition-defi" ] }, { "id": "d-esg", "label": "ESG investing", "itemIds": [ "definition-esg", "czr-investing-201-definition-esg", "tf-d-investing-201-definition-esg" ] } ], "objectiveTests": [ { "id": "test-algo-cbdc", "objectiveId": "obj-algo-cbdc", "title": "Algo Trading & CBDCs", "mcqIds": [ "mcq-rw-l13-p1-future", "ot-algo-cbdc-1", "ot-algo-cbdc-2", "ot-algo-cbdc-3", "ot-algo-cbdc-4" ] }, { "id": "test-defi", "objectiveId": "obj-defi", "title": "Decentralized Finance (DeFi)", "mcqIds": [ "ot-defi-1", "ot-defi-2", "ot-defi-3", "ot-defi-4", "ot-defi-5" ] }, { "id": "test-esg", "objectiveId": "obj-esg", "title": "ESG Investing", "mcqIds": [ "ot-esg-1", "ot-esg-2", "ot-esg-3", "ot-esg-4", "ot-esg-5" ] } ] }, { "id": "l14-foundation", "title": "Building Your Investment Foundation", "studyGuidePath": "/packs/investing-201/guides/l14-foundation.md", "parts": [ { "id": "l14-p1-portfolio", "title": "Portfolio and tax-advantaged accounts", "studyGuideAnchor": "portfolio-and-tax-advantaged-accounts", "itemIds": [ "fact-portfolio-pyramid", "pair-base-layer", "definition-401k", "definition-ira", "definition-roth-ira", "definition-hsa", "fact-roth-power", "mcq-rw-l14-p1-portfolio", "proc-brokerage-open", "proc-tax-loss-harvest", "czr-investing-201-definition-401k", "czr-investing-201-definition-ira", "czr-investing-201-definition-roth-ira", "czr-investing-201-definition-hsa", "tf-df-investing-201-definition-401k", "tf-df-investing-201-definition-ira", "tf-df-investing-201-definition-roth-ira", 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"fi-mcq-rw-l14-p2-compound" ], "order": 2 } ], "order": 14, "objectives": [ { "id": "obj-portfolio-pyramid", "statement": "Structure a portfolio into a base layer and a speculative top layer.", "demonstrationIds": [ "d-pyramid" ] }, { "id": "obj-tax-accounts", "statement": "Distinguish 401(k), Traditional IRA, Roth IRA, and HSA by tax treatment.", "demonstrationIds": [ "d-accounts-def", "d-accounts-cloze", "d-accounts-tf" ] }, { "id": "obj-compounding", "statement": "Demonstrate the power of compounding over decades and the market's long-run return.", "demonstrationIds": [ "d-compound", "d-compound-check" ] } ], "demonstrations": [ { "id": "d-pyramid", "label": "Portfolio pyramid layers", "itemIds": [ "pair-base-layer", "mcq-rw-l14-p1-portfolio" ] }, { "id": "d-accounts-def", "label": "401(k), IRA, Roth IRA, HSA definitions", "itemIds": [ "definition-401k", "definition-ira", "definition-roth-ira", "definition-hsa" ], "requiredCorrect": 3 }, { "id": "d-accounts-cloze", "label": "Account fill-in-the-blanks", "itemIds": [ "czr-investing-201-definition-401k", "czr-investing-201-definition-ira", "czr-investing-201-definition-roth-ira", "czr-investing-201-definition-hsa" ], "requiredCorrect": 3 }, { "id": "d-accounts-tf", "label": "Account true/false checks", "itemIds": [ "tf-df-investing-201-definition-401k", "tf-df-investing-201-definition-ira", "tf-df-investing-201-definition-roth-ira", "tf-df-investing-201-definition-hsa" ], "requiredCorrect": 3 }, { "id": "d-compound", "label": "Compounding examples and long-run return", "itemIds": [ "numeric-compound-453k", "numeric-sp500-1928", "q-inv-compound-3-5m", "q-inv-sp500-1957" ], "requiredCorrect": 3 }, { "id": "d-compound-check", "label": "Inflation-adjusted return and compounding T/F", "itemIds": [ "mcq-rw-l14-p2-compound", "tf-f-investing-201-q-inv-compound-3-5m", "tf-t-investing-201-q-inv-sp500-1957" ] } ], "objectiveTests": [ { "id": "test-portfolio-pyramid", "objectiveId": "obj-portfolio-pyramid", "title": "The Portfolio Pyramid", "mcqIds": [ "mcq-rw-l14-p1-portfolio", "ot-pyramid-1", "ot-pyramid-2", "ot-pyramid-3", "ot-pyramid-4" ] }, { "id": "test-tax-accounts", "objectiveId": "obj-tax-accounts", "title": "Account Tax Treatment", "mcqIds": [ "ot-tax-1", "ot-tax-2", "ot-tax-3", "ot-tax-4", "ot-tax-5" ] }, { "id": "test-account-recall", "objectiveId": "obj-tax-accounts", "title": "Recognize the Account", "mcqIds": [ "ot-acct-1", "ot-acct-2", "ot-acct-3", "ot-acct-4", "ot-acct-5" ] }, { "id": "test-compounding", "objectiveId": "obj-compounding", "title": "The Power of Compounding", "mcqIds": [ "mcq-rw-l14-p2-compound", "ot-compound-1", "ot-compound-2", "ot-compound-3", "ot-compound-4" ] } ] }, { "id": "l15-recall", "title": "Quick Recall", "studyGuidePath": "/packs/investing-201/guides/l15-recall.md", "parts": [ { "id": "l15-p1-recall", "title": "Key terms and numbers", "studyGuideAnchor": "key-terms-and-numbers", "itemIds": [ "pair-recall-buttonwood", "pair-recall-nasdaq", "pair-recall-sec", "pair-recall-rule72", "pair-recall-margin", "pair-recall-fcf", "pair-recall-dca", "pair-recall-mag7", "pair-recall-roth", "pair-recall-moat", "pair-recall-pe", "pair-recall-buffett", "mcq-rw-l15-p1-recall", "tf-t-investing-201-pair-recall-nasdaq", "tf-f-investing-201-pair-recall-rule72", "tf-t-investing-201-pair-recall-margin", "tf-f-investing-201-pair-recall-fcf", "tf-t-investing-201-pair-recall-dca", "tf-f-investing-201-pair-recall-roth", "concept-rw-investing-201-rule-of-72", "concept-rw-investing-201-free-cash-flow", "concept-rw-investing-201-dollar-cost-averaging", "ot-recall-history-1", "ot-recall-history-2", "ot-recall-history-3", "ot-recall-history-4", "ot-recall-history-5", "ot-recall-math-1", "ot-recall-math-2", "ot-recall-math-3", "ot-recall-math-4", "ot-recall-strategy-1", "ot-recall-strategy-2", "ot-recall-strategy-3", "ot-recall-strategy-4", "ot-recall-strategy-5", "ot-recall-value-1", "ot-recall-value-2", "ot-recall-value-3", "ot-recall-value-4", "ot-recall-value-5", "ot-cov-recall-strategy-1", "ot-cov-recall-strategy-2", "ot-cov-recall-strategy-3", "ot-cov-recall-strategy-4" ], "order": 1 } ], "order": 15, "objectives": [ { "id": "obj-recall-history", "statement": "Recall the founding milestones: Buttonwood, Nasdaq, and the SEC.", "demonstrationIds": [ "d-recall-history" ] }, { "id": "obj-recall-math", "statement": "Recall the Rule of 72, margin of safety, and free cash flow.", "demonstrationIds": [ "d-recall-math", "d-recall-math-check" ] }, { "id": "obj-recall-strategy", "statement": "Recall dollar-cost averaging, the Magnificent Seven, Roth IRAs, and moats.", "demonstrationIds": [ "d-recall-strategy", "d-recall-strategy-check" ] }, { "id": "obj-recall-value", "statement": "Recall the P/E ratio and Warren Buffett's place in investing.", "demonstrationIds": [ "d-recall-value" ] } ], "demonstrations": [ { "id": "d-recall-history", "label": "Buttonwood, Nasdaq, SEC", "itemIds": [ "pair-recall-buttonwood", "pair-recall-nasdaq", "pair-recall-sec", "tf-t-investing-201-pair-recall-nasdaq" ], "requiredCorrect": 3 }, { "id": "d-recall-math", "label": "Rule of 72, margin of safety, FCF", "itemIds": [ "pair-recall-rule72", "pair-recall-margin", "pair-recall-fcf" ] }, { "id": "d-recall-math-check", "label": "Rule-of-72 math and math-term T/F", "itemIds": [ "mcq-rw-l15-p1-recall", "tf-f-investing-201-pair-recall-rule72", "tf-t-investing-201-pair-recall-margin", "tf-f-investing-201-pair-recall-fcf" ], "requiredCorrect": 3 }, { "id": "d-recall-strategy", "label": "DCA, Mag 7, Roth IRA, moat", "itemIds": [ "pair-recall-dca", "pair-recall-mag7", "pair-recall-roth", "pair-recall-moat", "ot-cov-recall-strategy-1", "ot-cov-recall-strategy-2", "ot-cov-recall-strategy-3", "ot-cov-recall-strategy-4" ], "requiredCorrect": 3 }, { "id": "d-recall-strategy-check", "label": "Strategy-term T/F checks", "itemIds": [ "tf-t-investing-201-pair-recall-dca", "tf-f-investing-201-pair-recall-roth" ] }, { "id": "d-recall-value", "label": "P/E ratio and Buffett", "itemIds": [ "pair-recall-pe", "pair-recall-buffett" ] } ], "objectiveTests": [ { "id": "test-recall-history", "objectiveId": "obj-recall-history", "title": "Founding milestones", "mcqIds": [ "ot-recall-history-1", "ot-recall-history-2", "ot-recall-history-3", "ot-recall-history-4", "ot-recall-history-5" ] }, { "id": "test-recall-math", "objectiveId": "obj-recall-math", "title": "Rule of 72, margin, FCF", "mcqIds": [ "mcq-rw-l15-p1-recall", "ot-recall-math-1", "ot-recall-math-2", "ot-recall-math-3", "ot-recall-math-4" ] }, { "id": "test-recall-strategy", "objectiveId": "obj-recall-strategy", "title": "Strategy essentials", "mcqIds": [ "ot-recall-strategy-1", "ot-recall-strategy-2", "ot-recall-strategy-3", "ot-recall-strategy-4", "ot-recall-strategy-5", "ot-cov-recall-strategy-1", "ot-cov-recall-strategy-2", "ot-cov-recall-strategy-3", "ot-cov-recall-strategy-4" ] }, { "id": "test-recall-value", "objectiveId": "obj-recall-value", "title": "P/E and Buffett", "mcqIds": [ "ot-recall-value-1", "ot-recall-value-2", "ot-recall-value-3", "ot-recall-value-4", "ot-recall-value-5" ] } ] }, { "id": "l16-legendary-investors", "title": "Legendary Investors", "studyGuidePath": "/packs/investing-201/guides/l16-p1-investors.md", "parts": [ { "id": "l16-p1-investors", "title": "Legendary investors", "studyGuideAnchor": "legendary-investors", "itemIds": [ "concept-buffett", "concept-munger", "concept-graham", "concept-bogle", "concept-lynch", "concept-dalio", "concept-soros", "concept-wood", "mcq-rw-l16-p1-investors", "ot-value-legends-1", "ot-value-legends-2", "ot-value-legends-3", "ot-value-legends-4", "ot-value-legends-5", "ot-index-lynch-1", "ot-index-lynch-2", "ot-index-lynch-3", "ot-index-lynch-4", "ot-index-lynch-5", "ot-macro-legends-1", "ot-macro-legends-2", "ot-macro-legends-3", "ot-macro-legends-4" ], "order": 1, "studyGuidePath": "/packs/investing-201/guides/l16-p1-investors.md" } ], "order": 16, "objectives": [ { "id": "obj-value-legends", "statement": "Identify the founders of value investing: Graham, Buffett, and Munger.", "demonstrationIds": [ "d-value-legends" ] }, { "id": "obj-index-stockpicking-legends", "statement": "Identify Bogle (index funds) and Lynch (stock-picking).", "demonstrationIds": [ "d-bogle-lynch" ] }, { "id": "obj-macro-legends", "statement": "Identify the macro and growth investors Dalio, Soros, and Wood, and recall who 'broke the Bank of England.'", "demonstrationIds": [ "d-macro-legends" ] } ], "demonstrations": [ { "id": "d-value-legends", "label": "Graham, Buffett, Munger", "itemIds": [ "concept-graham", "concept-buffett", "concept-munger" ] }, { "id": "d-bogle-lynch", "label": "Bogle and Lynch", "itemIds": [ "concept-bogle", "concept-lynch" ] }, { "id": "d-macro-legends", "label": "Dalio, Soros, Wood, and the Bank of England bet", "itemIds": [ "concept-dalio", "concept-soros", "concept-wood", "mcq-rw-l16-p1-investors" ], "requiredCorrect": 3 } ], "objectiveTests": [ { "id": "test-value-legends", "objectiveId": "obj-value-legends", "title": "Founders of Value Investing", "mcqIds": [ "ot-value-legends-1", "ot-value-legends-2", "ot-value-legends-3", "ot-value-legends-4", "ot-value-legends-5" ] }, { "id": "test-index-stockpicking-legends", "objectiveId": "obj-index-stockpicking-legends", "title": "Bogle and Lynch", "mcqIds": [ "ot-index-lynch-1", "ot-index-lynch-2", "ot-index-lynch-3", "ot-index-lynch-4", "ot-index-lynch-5" ] }, { "id": "test-macro-legends", "objectiveId": "obj-macro-legends", "title": "Macro and Growth Investors", "mcqIds": [ "mcq-rw-l16-p1-investors", "ot-macro-legends-1", "ot-macro-legends-2", "ot-macro-legends-3", "ot-macro-legends-4" ] } ] }, { "id": "l-key-concepts", "title": "Key Concepts", "order": 99, "parts": [ { "id": "lc-people", "title": "Key People", "order": 0, "itemIds": [ "concept-buffett", "concept-munger", "concept-graham", "concept-bogle", "concept-lynch", "concept-dalio", "concept-soros", "concept-wood", "mcq-rw-lc-people", "ot-people-buffett", "ot-people-graham", "ot-people-soros", "ot-people-pairing" ] }, { "id": "lc-things", "title": "Key Things", "order": 1, "itemIds": [ "concept-investing-201-stock", "concept-investing-201-bond", "concept-investing-201-reit", "concept-investing-201-ipo", "concept-investing-201-dividend", "concept-investing-201-margin-of-safety", "concept-investing-201-economic-moat", "mcq-rw-lc-things", "ot-instr-bond", "ot-instr-reit", "ot-instr-moat", "ot-instr-not-correct" ] }, { "id": "lc-events", "title": "Key Events", "order": 2, "itemIds": [ "concept-investing-201-the-crash-of-1929", "concept-investing-201-black-monday-1987", "concept-investing-201-the-dot-com-bubble-burst", "concept-investing-201-the-2008-financial-crisis", "concept-investing-201-the-covid-19-crash", "concept-investing-201-the-sec-formation", "concept-investing-201-the-glass-steagall-act", "mcq-rw-lc-events", "ot-events-1929", "ot-events-dotcom", "ot-events-2008", "ot-events-pairing", "ot-cov-key-events-1", "ot-cov-key-events-2" ] } ], "studyGuidePath": "/packs/investing-201/guides/l-key-concepts.md", "objectives": [ { "id": "obj-key-people", "statement": "Identify the key investors behind modern investing philosophies.", "demonstrationIds": [ "d-people-founders", "d-people-others" ] }, { "id": "obj-key-instruments", "statement": "Recall the core instruments and value concepts (stock, bond, REIT, IPO, dividend, margin of safety, moat).", "demonstrationIds": [ "d-instruments-1", "d-instruments-2" ] }, { "id": "obj-key-events", "statement": "Identify the major market crises and regulatory milestones and rank the biggest one-day crash.", "demonstrationIds": [ "d-events-1", "d-events-2" ] } ], "demonstrations": [ { "id": "d-people-founders", "label": "Graham, Buffett, Bogle, and Vanguard's founder", "itemIds": [ "concept-graham", "concept-buffett", "concept-bogle", "mcq-rw-lc-people" ], "requiredCorrect": 3 }, { "id": "d-people-others", "label": "Munger, Lynch, Dalio, Soros", "itemIds": [ "concept-munger", "concept-lynch", "concept-dalio", "concept-soros" ], "requiredCorrect": 3 }, { "id": "d-instruments-1", "label": "Stock, bond, REIT, IPO", "itemIds": [ "concept-investing-201-stock", "concept-investing-201-bond", "concept-investing-201-reit", "concept-investing-201-ipo" ], "requiredCorrect": 3 }, { "id": "d-instruments-2", "label": "Dividend, margin of safety, moat, and the min discount", "itemIds": [ "concept-investing-201-dividend", "concept-investing-201-margin-of-safety", "concept-investing-201-economic-moat", "mcq-rw-lc-things" ], "requiredCorrect": 3 }, { "id": "d-events-1", "label": "1929 crash, Black Monday, dot-com, largest one-day drop", "itemIds": [ "concept-investing-201-the-crash-of-1929", "concept-investing-201-black-monday-1987", "concept-investing-201-the-dot-com-bubble-burst", "mcq-rw-lc-events", "ot-cov-key-events-1", "ot-cov-key-events-2" ], "requiredCorrect": 3 }, { "id": "d-events-2", "label": "2008, COVID, SEC formation, Glass-Steagall", "itemIds": [ "concept-investing-201-the-2008-financial-crisis", "concept-investing-201-the-covid-19-crash", "concept-investing-201-the-sec-formation", "concept-investing-201-the-glass-steagall-act" ], "requiredCorrect": 3 } ], "objectiveTests": [ { "id": "test-key-people", "objectiveId": "obj-key-people", "title": "Key Investors", "mcqIds": [ "mcq-rw-lc-people", "ot-people-buffett", "ot-people-graham", "ot-people-soros", "ot-people-pairing" ] }, { "id": "test-key-instruments", "objectiveId": "obj-key-instruments", "title": "Instruments & Value Concepts", "mcqIds": [ "mcq-rw-lc-things", "ot-instr-bond", "ot-instr-reit", "ot-instr-moat", "ot-instr-not-correct" ] }, { "id": "test-key-events", "objectiveId": "obj-key-events", "title": "Crises & Regulatory Milestones", "mcqIds": [ "mcq-rw-lc-events", "ot-events-1929", "ot-events-dotcom", "ot-events-2008", "ot-events-pairing", "ot-cov-key-events-1", "ot-cov-key-events-2" ] } ] } ] }