| Term | Definition |
|---|
| corporation | an organization created by law whose shareholders have limited legal and financial liability |
| diversity | to buy a variety of stocks |
| dividend | money from profits of a company that is paid to the stockholders. Payment can be in cash or stock shares and is usually paid quarterly |
| Dow jones industrial Average | a mearsure of stock market prices based on thirty leading companies of the New York Stock Exchange and NASDAQ |
| incorpation | the process of forming corporation type ownership of a business |
| initial public offering | the first time a corporation's stock is offered for sale to the public. |
| initial value | the value of the stock when it is first offered for sale. The price of stock at this point is determined by the total assets of the company |
| investment | the use of resources (capital) to create wealth |
| investor | someone who uses his/her money to purchase stocks with the expaectations of making a profit |
| market value | the value of a business in terns of what it can be sold for on the open market |
| mutual funds | a portfolio or selection of stocks that is owned by many shareholders and managed by a professional stock manager. It allows people to pool their money with other people to buy a variety of stocks |
Combine with other sets
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