| Term | Definition |
| stock market | a general term to describe the buying and selling issued by a company. |
| Stock | a share of ownership and earnings of a business |
| Stock Certificate | piece of paper a shareholders gets to represent thier ownership pf a stock. |
| Portfolio Diversification | an individual who has a variety if investments tools to decrease risk. |
| Investment Risk | the unceratinty about the outcome of an investment |
| Rate of Return | the increase or decrease in the original price of investment. |
| Common Stock | units of ownership in a publilc corporation. shareholders have voting rights. |
| Stock Split | share owned by existing stockholders are divided into a large number if shares. |
| Divendends | distruibutions if earning oaid to stockholders |
| Preferred Stock | sgares which pay fixed divendends and have precedence over common stock |
| Par Value | The fuxed value stated on a perferred stock cerficate which indicates the divendends which wilkl be paid to share holders. |
| Market Price | the amount a willing buyer pat a willing seller for a stock. |
| Growth Stock | a stock from a company which has a consistent record of realtively rapid growth and earings in all enconmic condition |
| Income stock | a stock from a company whcih pays higer than average dividedends becayse the company chooses to retain only a small portion of the profit. |
| Value Stock | stick from a company which has a low market price considering historical earning records and value of current assets. |
| Countercylical Stock | Stok from a company which guves consistent recirds if returns even when the ecnomy is siffering becuase thier product is always in demand. |
| Cycllilcal Stock | a staock which is greatly influenced by changes in the economic business cycle |
| Speculatvie stock | a very high risk stock from a company with potienal for substanial earnings in thge furture |
| Blur Chip Stock | stock form nationally recoginized comapnies which dominate the indusrtryt often having annual revenue of $1 billion or more. |
| Book Value | net worth of a company |
| Earnings Per Share | how nuch income a cimpany has vailabke to pay in dividends and reinvest as retained earnings on per share basis |