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Stock Market chapter 2- corporations

Terms in this set (32)

market capitalization
an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share
SEC
a watchdog agency that enforces federal laws pertaining to the stock market
Par Value
A dollar value assigned to stocks for bookkeeping purposes only
Market Value
The price people are presently willing to pay for a stock
Book Value
total assets of a corporation minus total liabilities (divided by the total number of outstanding share if looking for per share)
Red Herring
a perliminary prospectus that has a disclaimer staing the SEC has not yet approved sale of the stock
Prospectus
a summar of the financial capabilities of a corporation issuings stocks
issued stock
stock sold to investors
outstanding stock
shares standing out in the hands of the public
authorized stock
shares a corporation is allowed to issue
treasury stock
shares repurchase by a corporation
primary distribution
a corporation's stock when it is sold to the public for the first time
secondary market
stock transactions that atke place only between brokers and investors
preferred stock
stock that gives its holders certain rights over common stockholders
stock certificate
a paper that shows ownership in a corporation
stock rights
a short-term privilege that allows current stockholders to buy stock of a new issue at less than market value
warrants
a long-term privilege (similar to stock rights) that allows investors tobuy additional shares at a set price
proxy
a form allowing another person to vote on a shareholder's behalf
proxy fights
result of an investor or a group of investors trying to gain control of company policy by encouraging shareholders to vote against management or to sign over thier proxies
asked / offer price
how much the seller is willing to sell at
at the market
an order to find the best possible price to sell or buy at
benefits of trade
benefits received when trading
bid price
the price buyers are willing to buy at
broker
a member of the exchange that brings together buyers and sellers
clerk
a member of the exchange that transfers information between the office and the trading floor
commission
the fee brokers charge for trading
cost of trade
the time and money spent for trading
floor broker
broker on the floor trading stocks
limit order
an order to sell or buy at a certain or better price
quotes
lowest selling price to highest buying price
specialist
someone who records all transactions and their prices and takes care of limit order for a certain company at a post
stockbroker
an agent that transfer's information from the clerk and private investor from in the office
THIS SET IS OFTEN IN FOLDERS WITH...