Unit 4: Investing

Created by amesnier1202 

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15 terms

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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