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5 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Stocks |
They’re nothing more than pieces of paper entitling stockholders to a percentage of ownership in companies.You don’t own the companies. You’re not investing in the companies themselves. You have a little piece of paper and the value of your piece of paper can go up or down. That’s what you’ve got—nothing more, nothing less. |
Do you own part of the company? or do you invest in the company itself? |
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Commodities |
Commodities are physical substances like oil, gold, grain, and orange juice (remember Trading Places?). The prices of commodities can inuence penny stocks, but they aren’t usually related. They’re denitely a different animal altogether. |
Are commodities prices and penny-stock prices always related? |
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Derivatives |
Derivatives include futures and options, and derive their value from other investments, like stocks. Although they sometimes influence penny stocks, they aren’t,again, directly related |
Are derivatives and stocks always related? |
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Real Estate |
Investing in physical properties is another path people take to growth their wealth.Sometimes, real estate investing can influence penny stocks, such as when a penny stock company owns a lot of real estate, but this type of investing is another one that rarely influences penny stocks. |
Does Real estate have a large influence on the penny stock market? |
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Supply and Demand |
It’s very simple. When there are more buyers than sellers, the stock prices rise to attract more sellers. When there are more sellers than buyers, stock prices fall to attract more buyers. Price is always changing based on supply and demand |
Does demand ALWAYS influence price? |
