Unit 4: Investing
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Created by:
amesnier1202 on April 13, 2012
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15 terms
Terms | Definitions |
|---|---|
 Blue-Chip stock | stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more |
| Speculative stock | A very high risk stock from a company with potential for substantial earnings in the future. |
| NYSE | New York Stock Exchange |
| S & P 500 | index that shows the price changes of 500 different stocks |
| Commodities | economic goods or products before they are processed and/or given a brand name, such as a product of agriculture |
| Stock | a certificate documenting the shareholder's ownership in the corporation |
| Securities | All of the investments, including stocks, bonds, mutual funds, options, and commodities, that are traded. |
| Time value of money | Money's potential to grow in value over time. The relationship between time, money, a rate of return, and earnings growth. |
| Diversification | Spreading out investments to reduce risk |
| Capital gain | Profit from the sale of an asset.(Capital gain can result when stock is sold for a higher price than was paid for it). |
| NASDAQ | Stocks of smaller regional companies are traded on brokerage firm's computers because of low volume trades which are not accepted by the large exchanges. |
| Countercyclical Stock | Stock from a company which gives consistent records of returns even when the economy is suffering because their product is always in demand. |
| Growth Stock | stock of a corporation that has had faster than average gains in earnings and is expected to continue to grow |
| Income stock | pays higher-than-average dividends compared to other stock issues |
| Cyclical stock | has a market value that tends to reflect the state of the economy |
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