Description: This video will introduce the concepts of investing versus trading. This includes the definitions of each as well as different methods of investing and trading. Short and long positions as well as buying and selling options are explained along with types of traders. In order to understand how people determine what kind of investors they are, risk capacity and risk tolerance are explained. Relevant investing terms like ESG will also be discussed in order to highlight how investors are becoming more conscious of the types of companies/stocks they are investing in.
Authors: Weilu Hou, Stony Finance Lab
Editor: Yuelin Peng
Useful Resources:
Investing & Trading Explained: https://www.investopedia.com/ask/answers/12/difference-investing-trading.asp https://www.approachfp.com/profile-of-moderate-investor/
Options Explained:
https://www.buyupside.com/articles_other/options.htm
https://www.thebalance.com/call-and-put-options-definitions-and-examples-1031124
https://www.stockmarketloss.com/practice/options
Risk Capacity & Risk Tolerance:
https://www.investopedia.com/terms/r/risktolerance.asp
https://www.rbcgam.com/en/ca/learn-plan/investment-basics/whats-your-risk-capacity/detail
https://www.fool.com/investing/general/investor-quiz.aspx
https://www.sofi.com/learn/content/what-type-of-investor-are-you-quiz/
