| Term | Definition |
|
securities |
all of the investments, including stocks, bonds, mutual funds, options,and commodities, that are traded bought and sold |
|
private corporation |
one whose shares are owned by a relatively small group of people and are not traded openly in stock markets |
|
proxy |
a document that transfer a stockholder's voting rights to someone else |
|
public corporation |
one that sells its shares openly in stock markets where anyone can buy them |
|
preemptive right |
gives current stockholders the right to buy any new stock the corporation issues before the stock is offered to the general public |
|
par value |
an assigned dollar valuethat is printed on a stock certificate |
|
blue-chip stock |
considered a safe investment that generally attracts conservative investors |
|
income stock |
pays higher-than-average dividends compared to other stock issues |
|
growth stock |
issued by a corporation whose potential earnings may be higherthan the average earnings predicted for all the country firms in the country |
|
cyclical stock |
a market value that trends to reflect the state of the economy |
|
defensive stock |
a stock that remains stable during declines in the economy |
|
large cap stock |
the stock of a corporation that has issued a large number of shares and has a large amount of capitalization |
|
capitalization |
DEFINED AS THE TOTAL AMOUNT OF STOCKS AND BONDS ISSUED BY A CORPORATION |
|
SMALL CAP STOCK |
STOCK ISSUED BY A COMPANY WITH A CAPITALIZATION OF $150 MILLION OR LESS |
|
PENNY STOCK |
TYPICALLY SELLS FOR LESS THAN $1 A SHARE,IT CAN SELL FOR AS MUCH AS $10 A SHARE |
|
BULL MARKET |
OCCURS WHEN INVESTORS ARE OPTIMISTIC ABOUT THE ECONOMY AND BUY STOCKS |
|
BEAR MARKET |
OCCURS WHEN INVESTORSARE PESSIMISTICABOUT THE ECONOMY AND SELL STOCKS |
|
TOTAL RETURN |
A CALCULATION THAT INCLUDES THE ANNUAL DIVIDEND AS WELL AS ANY INCREASE OR DECREASE IN THE ORIGNAL PURCHASE PRICE OF THE INVESTMENT |
|
CURRENT YIELD |
THE ANNUAL DIVIDEND DIVIDED BY THE INVESTMENTS CURRENT MARKET VALUE |
|
EARNINGS PER SHARE |
A CORPORATIONS NET, OR AFTER TAX, EARNINGS DIVIDED BY THE NUMBER OF OUTSTANDING SHARES OF COMMON STOCK |
|
PRICE-EARNINGS RATIO |
THE PRICE OF ONE SHARE OF STOCK DIVIDED BY THE CORPORATIONS EARNINGS PER SHARE OF STOCK OUTSTANDING OVER THE LAST 12 MONTHS |
|
PRIMARY MARKET |
A MARKET IN WHICH AN INVESTOR PURCHASES SECURITIES FROM A CORPORATION THROUGH AN INVESTMENT BANK OR SOME OTHER REPRESENTATIVE OF THE CORPORATION |
|
INITIAL PUBLIC OFFERING |
OCCURS WHEN A COMPANY SELLS STOCK TO THE GENERAL PUBLIC FOR THE FIRST TIME |
|
SECONDARY MARKET |
A MARKET FOR EXISITING FINANCIAL SECURITIES THAT ARE CURRENTLY TRADED AMONG INVESTORS |
|
SECURITIES EXCHANGE |
A MARKETPLACE WHERE BROKERS WHO REPRESENT INVESTORS MEET TO BUY AND SELL SECURITIES |
|
OVER- THE-COUNTER MARKET |
A NETWORK OF DEALERS WHO BUY ANF SELL THE STOCKS OF CORPORATIONS THAT ARE NOT LISTED ON A SECURITIES EXCHANGE |
|
ACCOUNT EXECUTIVE |
STOCKBROKER, A LICENSED INDIVIDUAL WHO BUYS OR SELLS SECURITIES FOR CLIENTS |
|
PORTFOLIO |
CONSISTS OF ALL THE SECURITIES HELD BY AN INVESTOR |
|
COMMISSION |
A FEE CHARGED BY A BROKAGE FIRM FOR BUYING AND SELLING OF A SECURITY |
|
MARKET ORDER |
A REQUEST TO BUY OR SELL A STOCK AT THE CURRENT MARKET VALUE |
|
LIMIT ORDER |
A REQUEST TO BUY OR SELL A STOCK AT A SPECIFIED PRICE |
|
STOP ORDER |
A TYPE OF LIMIT ORDER TO SELL A PARTICULAR STOCK AT THE NEXT AVAILABLE OPPORTUNITY AFTER ITS MARKET REACHES A SPECIFIED AMOUNT |
|
ROUND LOTS |
100 SHARES OR MULTIPLES OF A 100 SHARES OF A PARTICULAR STOCK |
|
ODD LOT |
CONTAINS FEWER THAN 10 SHARES OF A STOCK |
|
SELLING SHORT |
SELLING A STOCK THAT HAS BEEN BORROWED FROM A BROKRAGE FIRM AND THA MUST BE REPLACED |
| Add or remove terms from this set |