Question 1

What is an ETF?

Accepted Answer

An ETF (Exchange-Traded Fund) is a basket of stocks or bonds you can buy like a single stock. It gives you instant diversification at very low cost. For example, VOO tracks the S&P 500, so one share gives you exposure to all 500 companies.

Question 2

What is a P/E ratio?

Accepted Answer

The P/E ratio is a stock's price divided by its earnings per share. A P/E of 20 means you pay $20 for $1 of annual earnings. High P/E usually reflects growth expectations.

Question 3

What does IPO mean?

Accepted Answer

An IPO (Initial Public Offering) is when a company sells its shares to the public for the first time. In Hong Kong, popular IPOs are heavily oversubscribed — allotment rates can fall below 1%.

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