What distinguishes hedge funds from traditional funds?
They aim to achieve high returns through a variety of investment strategies and are often less regulated than traditional investment funds.

What does the abbreviation IPO mean?
Initial Public Offering, i.e. a company’s first stock market flotation.

Why do junk bonds offer higher interest rates than other bonds?
Because the risk is also high.

What is the main difference between cryptocurrencies and state currencies such as the euro or dollar?
Cryptocurrencies are generally organized on a decentralized basis. They enable direct transactions without intermediaries such as banks.

What does a leading index represent?
The performance of a group of assets representing a specific area of the market.

How is the market capitalization of a company calculated?
Number of shares × share price.