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15 terms

Unit 4: Investing

STUDY
PLAY
Blue-Chip stock
stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more
Speculative stock
A very high risk stock from a company with potential for substantial earnings in the future.
NYSE
New York Stock Exchange
S & P 500
index that shows the price changes of 500 different stocks
Commodities
economic goods or products before they are processed and/or given a brand name, such as a product of agriculture
Stock
a certificate documenting the shareholder's ownership in the corporation
Securities
All of the investments, including stocks, bonds, mutual funds, options, and commodities, that are traded.
Time value of money
Money's potential to grow in value over time. The relationship between time, money, a rate of return, and earnings growth.
Diversification
Spreading out investments to reduce risk
Capital gain
Profit from the sale of an asset.(Capital gain can result when stock is sold for a higher price than was paid for it).
NASDAQ
Stocks of smaller regional companies are traded on brokerage firm's computers because of low volume trades which are not accepted by the large exchanges.
Countercyclical Stock
Stock from a company which gives consistent records of returns even when the economy is suffering because their product is always in demand.
Growth Stock
stock of a corporation that has had faster than average gains in earnings and is expected to continue to grow
Income stock
pays higher-than-average dividends compared to other stock issues
Cyclical stock
has a market value that tends to reflect the state of the economy