Fin Mgt Ch 9
About this set
Created by:
schawalder on May 18, 2012
Subjects:
Log in to favorite or report as inappropriate.
Order by
22 terms
Terms | Definitions |
|---|---|
 securities | all the investments that are bought and sold on the stock market, including stocks, bonds, mutual funds, options, and commodities |
| private corporation | a company that issues stock a small group of people, also called a closely held corporation |
| public corporation | a company that sells its shares openly in stock markets, where anyone can buy them, also called a publicly held corporation |
| par value | an assigned dollar value that is printed on a stock certificate |
| blue-chip stock | safe investment that generally attracts conservative investors; usually stocks issued by the strongest and most respected companies |
| income stock | stock that pays higher-than-average dividends compared to other stocks |
| growth stock | stock issued by a corporation whose potential earnings may be higher than the average earnings predicted for all the corporations in the country |
| cyclical stock | stock with a market value that tends to reflect the state of the economy |
| defensive stock | stock that remains stable during declines in the economy |
| large-cap stock | stock of a corporation that has issued a large number of shares of stock and has a large amount of capitalization |
| capitalization | the total amount of stocks and bonds issued by a corporation |
| small-cap stock | stock issued by a company with a capitalization of $500 million or less |
| penny stock | stock that typically sells for less than $1 a share, although it can sell for as much as $10 a share |
| bull market | market condition that occurs when investors are optimistic about the economy and buy stocks |
| bear market | market condition that occurs when investors are pessimistic about the economy and sell stocks |
| current yield | the annual dividend of an investment divided by the current market value |
| total return | a calculation that includes the annual dividend as well as any increase or decrease in the original purchase price of an investment |
| earnings per share | a corporation's net, or after-tax, earnings divided by the number of outstanding shares of common stock |
| price-earnings (PE) ratio | the price of one share of stock divided by a corporation's earnings per share of stock over the last 12 months |
| securities exchange | a marketplace where brokers who represent investors meet to buy and sell securities |
| over-the-counter (OTC) market | a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange |
| portfolio | a collection of all the securities held by an investor |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.