| Term | Definition |
|---|
| Proxy | An absentee ballot that allows you to vote at corporation meetings |
| Primary Market | A new-issues market where investors buy securities initially offered for sale, and the money goes to the issuer |
| Secondary Market | The market where securities are bought and sold after they are first issued. |
| DRIP | Program that automatically uses your cash dividends to purchase additional shares of the stock without a broker |
| Stock Split | when a public company issues more shares of stock to existing shareholders |
| Ordinary Split | a stock split where the share price lowers while the number of outstanding shares increases |
| Reverse Split | a stock split where the share price increases while the number of outstanding shares decreases |
| Common Stock | Shares in a company that represent part ownership of that company |
| Preferred Stock | Stock whose holders have precedence over common stock in claiming dividends and assets |
| Blue Chip Stock | Companies known for consistent profits and paying dividends. They are usually well known, large-cap, and stable |
| Liquidity | The ability or ease with which assets can be converted into cash |
| Penny Stocks | A stock trading under $5. They tend to very speculative and volatile and often end up worthless |
| Cyclical Stocks | Stocks whose success is closely linked to the rise and fall of the general economy |
| Growth Stocks | A stock that generally grows faster than the S&P 500 and will likely produce consistent profits |
| Value Stocks | A stock that usually grows slower than the S&P 500 and are considered cheap. Good for bargain hunters |
| Income Stock | A stock that generally grows slower than the S&P 500 and will produce profits for the long-run |
| outstanding shares | the total number of a company's publicly traded shares |
Combine with other sets
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