Language of the Stock Market #1
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310431499 | Stock Market | A general term used to describe all transactions involving the buying and selling of stock shares issued by a company. | |
310431500 | Stock | A share of ownership in the assets and earnings of a business. | |
310431501 | Stock Certificate | The piece of paper a shareholder receives representing their ownership of a stock. | |
310431502 | Investment Risk | The uncertainty about the outcome of an investment. | |
310431503 | Rate of Return | The increase or decrease in the original purchase price of an investment. | |
310431504 | Common Stock | Shares or units of ownership in a public corporation. The shareholder has voting rights in the corporation. | |
310431505 | Dividends | Distributions of earnings paid to stockholders. | |
310431506 | Preferred Stock | Shares which pay fixed dividends and have precedence over common stock. | |
310431507 | Dow Jones Industrial Average | Oldest indicator of the ups and downs of the stock market. Lists the 30 leading industrial blue chip stocks. | |
310431508 | S & P 500 | Tracks the stock market activity for 500 stocks. | |
310431509 | NASDAQ | Monitors fast moving technology and financial services stocks. Usually the companies are smaller and transactions occur over an electronic market. | |
310431510 | Bear Market | The market is doing poorly and investors are not confident in the economy. Investors are not purchasing stocks and are selling what is already owned. | |
310431511 | Bull Market | The market is doing well and investors are optimistic about the economy and purchasing stocks. | |
310431512 | Broker | A person who is licensed to buy and sell stocks, provides investment advice, and collects a commission on each purchase or sale. | |
310431513 | New York Stock Exchange | The oldest and largest exchange with the strictest company standards. | |
310431514 | American Stock Exchange | The second largest exchange with less stringent requirements allowing for younger, smaller companies to be listed. | |
310431515 | Regional Stock Exchange | Stocks traded to investors who are living in a specific geographical area. | |
310440966 | Stock Ticker Symbol | A stock's abbreviated trading symbol name. |