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stock market test (financial algebra)

Terms in this set (21)

risk
the chance of loosing part or all of an investment
borrow (money)
one way to raise money to start a new business
profit
when you make money in business
capital gains
the profit you make by selling stock for more than you paid
high
the highest price for the year that a stock reaches is called the 52 week
stock exchange
the place where publicly held companies are bought and sold
s & p 500
an index based on the stock prices of the largest 500 firms
private (company)
a company owned by a person, family or group and does not sell shares to public on the stock market
nasdaq
an index based on stock prices of over 5000 companies traded on the market
profit
revenue - cost =
stock
ownership of shares in a business
public
a company owned by investors who buy shares of stock
dividends
part of the company earnings that pays as money to stockholders
preferred stock
ownership that guarantees dividends if it occurs, is less risky and has no voting rights
401k
a retirement savings funded by employee contributions often matched by employer, and is tax free until money is withdrawn
volatility
indicates how quickly the values change in the stock market
dow jones industrial
an index based on the stock prices of 30 actively traded large companies
mutual funds
funds that use money to buy stocks and bonds issued by other companies, large variety of investments with smaller risks
bonds
when a company or government needs to borrow money
bull market
a period in which stock market prices move up for several months
yield
the rate of return of an investment paid in dividends or interest expressed as a percent
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