Easter Contest Round 3: What are the Investing Golden Rules?
Yoooooo mooers,
After two exciting rounds of the games, we finally came to the final round of the Easter Contest. The difficulty of the 3rd round is significantly upgraded. The answers to this round's puzzles are financial terms. Join and show them your talent!
After two exciting rounds of the games, we finally came to the final round of the Easter Contest. The difficulty of the 3rd round is significantly upgraded. The answers to this round's puzzles are financial terms. Join and show them your talent!
Here are several scenarios indicating common financial terms. There is only one correct answer for each puzzle.
Scenario 1:
You found that the price of a commodity in Singapore is higher than that of the US. So you bought it from the US and sold it in Singapore, and you made a profit. (Ignore freight, tariff, etc.).
a. Investing
b. Arbitrage
c. Speculation
d. Automatic investment
Scenario 2:
You are watching a football match. However, you are unsure which side will win. So you decide to put your chips on both sides. Whichever side win, you will not lose the bet.
a. Hedge
b. Value investment
c. Price volatility
d. Automatic closing
Scenario 3:
A young man lost a lot of money in a casino but refused to leave. He was like a lost captain who was unwilling to unload the cargo and leave the ship promptly even though the ship was sinking fast.
a. Sunk cost
b. Opportunity cost
c. Purchase cost
d. Capital loss
Rules:
• Choose the right answer.
• There is only one correct answer for each puzzle.
• Illustrate the reasons for your choice.
How to join the game?
Comment below with your answers and basic logic. All qualified participants will get 20 points. Irrelevant comments will be considered as not qualified.
Go to the #Easter Contest: How to Find the Secret of Building Wealth and click 'Join discussion' to share your insights. Stories & thoughts about the secret to building wealth, the CEOs/investors' way of making a fortune, and the place investment opportunities lie in the near future are welcome. One user of the insightful post will be selected to get 1 FREE $SNDL.
When does the game end?
Round 3 competition ends on Apr 18, midnight SGT/noon ET.
Go to the #Easter Contest: How to Find the Secret of Building Wealth and click 'Join discussion' to share your insights. The discussion is always on until Apr 18.
What can you gain from this event?
PRIZES: Points Rewards & A Chance to Win 1 free $SNDL
SHARING: Ideas breed new ideas. We value the voices of all members of our community.
LEARNING: You may learn something new from yourselves and your fellow mooers. Don't forget to explore the in-app courses at the Learn tap to start a valuable journey.
CONNECTION: You may find like-minded mooers and establish relationships with them.
When will the answers be revealed?
The round 3 answers will be announced by @moomoo Learn on Apr 18, Monday. Stay tuned.
Attention! You can find all the answers and more on the Learn tab. Don't hesitate to start the learning journey and become a better investor!
Scenario 1:
You found that the price of a commodity in Singapore is higher than that of the US. So you bought it from the US and sold it in Singapore, and you made a profit. (Ignore freight, tariff, etc.).
a. Investing
b. Arbitrage
c. Speculation
d. Automatic investment
Scenario 2:
You are watching a football match. However, you are unsure which side will win. So you decide to put your chips on both sides. Whichever side win, you will not lose the bet.
a. Hedge
b. Value investment
c. Price volatility
d. Automatic closing
Scenario 3:
A young man lost a lot of money in a casino but refused to leave. He was like a lost captain who was unwilling to unload the cargo and leave the ship promptly even though the ship was sinking fast.
a. Sunk cost
b. Opportunity cost
c. Purchase cost
d. Capital loss
Rules:
• Choose the right answer.
• There is only one correct answer for each puzzle.
• Illustrate the reasons for your choice.
How to join the game?Comment below with your answers and basic logic. All qualified participants will get 20 points. Irrelevant comments will be considered as not qualified.
Go to the #Easter Contest: How to Find the Secret of Building Wealth and click 'Join discussion' to share your insights. Stories & thoughts about the secret to building wealth, the CEOs/investors' way of making a fortune, and the place investment opportunities lie in the near future are welcome. One user of the insightful post will be selected to get 1 FREE $SNDL.
When does the game end?Round 3 competition ends on Apr 18, midnight SGT/noon ET.
Go to the #Easter Contest: How to Find the Secret of Building Wealth and click 'Join discussion' to share your insights. The discussion is always on until Apr 18.
What can you gain from this event?PRIZES: Points Rewards & A Chance to Win 1 free $SNDL
SHARING: Ideas breed new ideas. We value the voices of all members of our community.
LEARNING: You may learn something new from yourselves and your fellow mooers. Don't forget to explore the in-app courses at the Learn tap to start a valuable journey.
CONNECTION: You may find like-minded mooers and establish relationships with them.
When will the answers be revealed?The round 3 answers will be announced by @moomoo Learn on Apr 18, Monday. Stay tuned.
Attention! You can find all the answers and more on the Learn tab. Don't hesitate to start the learning journey and become a better investor!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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PlutoMoo102685100 :
PlutoMoo102685100 : 1. B
Arbitrage because we are exploiting the price different of a specific commodity in different markets
2. A
You are hedging a bet but this limits upside gains
3. A
The man is suffering from sunk cost fallacy. Unloading the cargo and keeping the ship is a better alternative but the man is too occupied by the lost of this cargo that cannot be undont
Jgerich PlutoMoo102685100: You got the answers, bro?
doctorpot1 : scenario 1: (B) Arbitrage, because that is the definition of Arbitrage which is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset's listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms.
scenario 2: (A) Hedge, because you are taking an opposite or offsetting position in case you are wrong about you original position. in investing, hedging can be done using option where if you bought the shares of the company but you are worried that the price may fall sharply, so you bought PUT option just in case.
scenario 3: (A) Sunk Cost, this one a bit tricky cause the question a bit vague. I'm assuming he don't want to leave the casino because he had lost a lot of money and took that into his consideration thinking he would win the next round. if it is, then yea that is a Sunk Cost fallacy. Which is when you make you next decision taking into account cost that could not be recovered regardless of what decision you make. Thus that should not be factored in making your next decision.
PlutoMoo102685100 Jgerich: Yup
EYSY : 1. B Arbitrage - taking advantages of different prices of the same commodity by buying and selling the commodities at different market simultaneously
2. a Hedge - taking offsetting or opposite position to reduce the risk
3. a Sunk cost - this is a tricky one, bet the young man has probably treated his initial loss that were incurred as cannot be recovered. So he just continue betting, he should also consider prospective costs
CashLover1088 : Ans: Arbitrage
- it's a type of transaction of the same asset the investor trades in different locations to earn the profit on the price differences between these markets.
Ans: Hedge
- it consists of taking an offsetting or opposite position in a related security with the intention to reduce risk of an individual's asset/investment.
Ans: Sunk Cost
- in this case he lost alot of money in casino such like a cost that has already been incurred and that cannot be recovered. Such as sunk costs is treated as bygone and are not taken into consideration when deciding whether to continue an investment project.
** 'Learn' from MooMoo's in-app courses, they are very informative and it's free.
Milk The Cow PlutoMoo102685100:
Milk The Cow : Scenario 1:
+
.
in overall/final outcome 
.
Why keeps holding onto the weights when u know it may cost ur f**k*ng life 
+
.
Ans= (B) Arbitrage - Sad to say but "they" don't recognise it as investing as it's considered exploiting a loop hole in the economy system
Scenario 2:
Ans = (A) Hedge - Reduce risk & something like a sure win
Scenario 3:
Ans = (A) Sunk cost - Addiction...
Milk The Cow Milk The Cow: Instead of the predator fishing up a fish with baits
, the one who fell for the hook, line and sinker is the predator 
.
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