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The act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit.

Preferred Stock

stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights


a supply of something available for future use


The financial return on stock on a per share basis expressed as a percent of the stock market value. (To compute the yield, divide the annual dividend per share by current market price of the stock).


a businessman who buys or sells for another in exchange for a commission

Stock Exchange

an exchange where security trading is conducted by professional stockbrokers

Mutual Fund

a regulated investment company with a pool of assets that regularly sells and redeems its shares


a part of a company's profit that is divided among the people with shares in the company

Blue-Chip Stocks

high-priced common stocks that have been strong, profitable stocks for a long period of time.

Capital Gain

the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller

Speculative Stocks

are stocks that are reålativley new firms that dont have an established track record.

Capital Loss

The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller

Common Stock

Represents ownership in a publicly held company which entitles owners to dividends (if declared by the company's Board of Directors), voting rights on matters affecting the company, and in the elections of Boards members.

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