A perspective on the stock market

The Finance Club prepares participants for the stock market

No crystal ball to foresee the future of the stock market? That‘s what the stock market “driving licence” is for! Together with the Finance Club, the Department of Management Sciences has been offering this as a supplementary subject since 2022. A stock market game enables students to enter the thematic world of shares, funds and bonds and exchange ideas on investment philosophy, derivatives, hedge funds and crypto. The Finance Club Bonn-Rhein-Sieg is organised by students and belongs to the Federal Association of Stock Exchange Clubs at German Universities. The now more than 100 enthusiastic members expand their knowledge of financial management and investments in supplementary training courses as well as in practical applications and on excursions. They also have opportunities to meet professionals to expand their network and exchange ideas. Another advantage: free access to well-known business magazines.

More: www.fcbrs.de

Test your financial knowledge now::

1. What is the difference between a stock and a bond?

2. What is an ETF and how does it differ from traditional investment funds?

3. What is the difference between a “hot wallet” and a “cold wallet” when storing cryptocurrencies?

4. What is blockchain and how could it be used in the future?

4. A blockchain is a decentralised, distributed database that records transactions transparently and securely. Blockchains can be used in a variety of ways to improve the efficiency and security of business processes, such as to speed up the processing of transactions in the financial industry and reduce costs or, in the healthcare industry, to store patient data securely and facilitate access for medical professionals.

Disadvantage: It is more vulnerable to hacker attacks. A “cold wallet” remains offline and is more secure, but it is also slower and less practical for frequent transactions.

3. A “hot wallet” is connected to the internet, is constantly online and is well-suited for frequent transactions.

2. An exchange-traded fund (ETF) is a mutual fund that is traded on an exchange. Traditional mutual funds trade once a day at a set price and usually have a fund manager who manages the portfolio and generally charges a management fee. ETFs can be bought and sold at any time during trading hours, just like shares of stock. They often track indices, holding a portfolio of stocks or other assets that mirrors the index.

1. Stocks are shares in the ownership of a company that can be traded on the stock exchange. Bonds are debt instruments where the buyer lends money to the issuer and receives interest in return.