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Language of the Stock Market #1

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