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36 Cards in this Set
- Front
- Back
stockholders |
people who own shares of stocks |
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dividends |
money paid to stockholders from the company's profits |
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capital gains |
increase in the value of the stock over stock |
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capital loss |
the price goes down below the price intially paid for it |
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round lot |
100 shares or multiples of 100 shares of a particular stock |
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common stock |
a type of stock that pays a variable dividend and gives the holder voting rights |
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proxy |
a stockholder's written authorization to transfer his or her voting rights to someone else, usually a company manager |
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preferred stock |
a type of stock that pays a fixed dividend but has no voting rights |
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income stocks |
stocks that have a consistent history of paying high dividends |
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growth stocks |
stocks in corporations that reinvest their profits into the business so that it can grow |
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emerging stocks |
stocks in young, often small corporations that have higher overall risk than stocks of companies that have been successful for many years |
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blue chip stocks |
stocks of large, well-established corporations with a solid record of profitability |
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defensive stock (aka non-cyclical stock) |
remains stable and pays dividends during an economic decline |
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cyclical stocks |
do well when the economy is stable or growing but often do poorly during recessions, when the economy slows down |
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par value |
an assigned dollar value given to each share of stock |
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market value |
the price for which the stock is bought and sold in the marketplace |
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return on investment (ROI) |
formula: profit=paid-sold+dividends |
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stock index |
a benchmark that investors use to judge the performance of their investments |
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the Dow |
an average of the price movements of 30 major stocks listed on the New York Stock Exchange |
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securities |
stocks and bonds |
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securities exchange |
a marketplace where brokers who are representing investors meet to buy and sell securities |
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floor brokers |
people who buy and sell stocks on the exchange |
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specialists |
the brokers to the floor brokers |
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auction market |
where buyers and sellers are brought together to trade securities |
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OTC market |
a network of brokers who buy and sell the securities of corporations that are not listed on a securities exchange |
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bull market |
a prolonged period of rising stock prices and a general feeling of investor optimism |
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bear market |
a prolonged period of falling stock prices and a general feeling of investor pessimism |
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leverage |
the use of borrowed money to buy securities |
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speculator/day trader |
buy and sell stock within a short period of time |
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margin call |
the investor must pledge additional cash or securities to serve as collateral for the loan |
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short selling |
selling stock borrowed from a broker that must be replaced at a later time |
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stock split |
an increase in the number of outstanding shares of a company's stock |
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dollar-cost averaging |
technique that involves the systematic purchase of an equal dollar amount of the same stock at regular intervals |
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direct investment |
buying stock directly from a corporation |
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dividend reinvestment |
using dividends previously earned on the stock to buy more shares |
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ticker symbol |
the stock's abbreviated name |