19 terms

Personal Money Management

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Bear Market
A prolonged period of falling stock prices and a general feeling of investor pessimism
Blue Chip Stocks
Stocks of large, well-established corporations with a solid record of profitability.
Bull Market
A prolonged period of rising stock prices and a general feeling of investor optimism
Capital Gain
An Increase in value of the stock above the price initially paid for.
Common Stock
Type of stock that pays a variable dividend and gives the holder voting rights.
Direct Investment
Buying stock directly from a corporation
Dividend Reinvestment
Using dividends previously earned on a the stock to buy more shares.
Part of the corporation's profits paid to stockholders.
Earnings Per Share
Corporation's after-tax earnings divided by the number of common stock shares.
Growth Stocks
Stocks in corporations that reinvest their profits into the business so that it can grow.
Income Stocks
Stocks that have a consistent history of paying high dividends.
The use of borrowed money to buy securities.
Market Value
The price for which the stock is bought and sold in the marketplace.
Par Value
An assigned (and often arbitrary) dollar value.
Preferred Stock
Type of stock that pays a fixed dividend and carries no voting rights.
Stockholder's written authorization to transfer his or her voting rights to someone else.
Short Selling
selling stock borrowed from a broker that must be replaced at a later time.
Stock Split
An increase in the number of outstanding shares of a company's stock.
The owners of the corporation.