 | Term | Definition |
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Stock Market |
A general term used to describe all transactions involving the buying and selling of stock shares issued by a company. |
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Stock |
A share of ownership in the assets and earnings of a business. |
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Stock Certificate |
The peice of paper a shareholder recieves representing their ownership of a stock. |
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Portfolio Diversification |
A variety of investments to decrease risk. |
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Investment Risk |
The uncertainty about the outcome of an investment. |
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Rate of Return |
The increase or decrease in the original purchase price of an investment. |
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Common Stock |
Shares of ownership in a public corporation. The shareholder has voting rights in the corporation. |
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Stock Split |
Shares owned by existing stockholders are divided into a larger number of shares. |
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Dividends |
Distribution of earnings paid to buyers. |
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Preferred Stock |
Shares which pay fixed dividends and have precedence over common stock. |
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Par Value |
The fixed value stated on a preferred stock certificate which indicates the dividends which shall be payed to the shareholder. |
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Market Price |
the amount a willing buyer will pay a willing seller for a stock. |
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Growth Stock |
A stock from a compnay which consistently goes up. |
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Income Stock |
A stock which pays higher than the average dividends because they only reatin a little profit. |
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Value Stock |
Stock from a company which has a low market price because of historical earnings. |
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Countercyclical Stock |
Stock from a company that always gives return no matter what. |
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Cyclical Stock |
a stock which is greatly influenced by changes in the economy. |
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Speculative Stock |
A very high risk stock from a company with potential for profit in the future. |
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Blue Chip Stock |
Stock form nationally recognized companies that are extremley popular and make lots of money. |
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Book Value |
Net worth of a company. |
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Earnings per Share |
How much income a company can payin dividends on a share per basis. |
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Price/Earning Ratio |
Relationship between the price of one share and the annual earnings of the company. |
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Beta |
A measure of a stock's volatility compared to changes in the overall stock market. |
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Year to Date |
Stock price percent change from January 1st. |
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52 Week High |
The highest selling price for a stock in the past 52 weeks. |
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52 Week Low |
Lowest price a stock was sold in 52 weeks. |
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Ticker Symbol |
Stock's abbreviated trade name. |
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Dividends per Share |
Total cash payed common to all stockholders per share. |
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Dividend Yeild Percentage |
The dividend expressed as a percentage of the price of the share. |
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Volume 100's |
Number of transactions to the share on the reported day represented in 100's. |
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High Selling Price |
Highest selling price of stock for the previous day. |
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Low Selling Price |
Lowest selling price of stock for the previous day. |
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Close |
Price of the last share sold for a day. |
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Net Change |
Difference between closing price of previous day and current day. |
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Dow Jones Industrial |
Oldest Indicator of the ups and downs of stock market. Lists 30 leading stocks. |
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Standard and Poor's 500 Index |
Tracks stock market activity for 500 stocks. |
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NASDAQ |
Monitors technology stocks. |
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Bear Market |
When general stock investment goes down. Market is doing poor. |
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Bull Market |
When general stock investment goes up. Market is doing well. |
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Broker |
Person who is licensed to sell stock. |
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NYSE |
The oldest and largest exchange with the strictest rules. |
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American Stock Exchange |
Second largest exchange with less strict rules. |
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Regional Stock Exchange |
Stocks traded to investors who are living in a specific geographical area. |
