25 terms

Personal Finance

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Terms in this set (...)

Dividends
distributions of money, stock, or other property that a corporation pays to stockholders
Retained Earnings
profits that a company reinvests usually for expansion or to conduct research and development
Common Stock
a unit of of ownership of a company, and it entitles the owner/stockholder to voting privileges
Preferred Stock
a type of stock that gives the owner the advantage of receiving cash dividends before before common stockholders receive cash dividends
Corporate/Government Bond
Corp./Gov.'s written pledge to repay a specific amount of money w/ interest
Mutual Fund
an investment where investors pull in $ to buy stocks/bonds/other securities selected by their managers
Diversification
process of spreading your assets among several types of investments to reduce risk
Capitol Gains
the profit from the sale of assets such as bonds, stocks, and real estate
Securities
all of the investments that are bought and sold on the stock market
Par Value
an assigned dollar value that is printed on a stock certificate
Stock Split
shares of stock owned by existing stockholders are divided into a larger number of shares
Bull Market
when investors are optimistic about the economy and buy stocks
Bear Market
when investors are pessimistic about economy and sell stocks
Securities Exchanges
marketplace where brokers who represent investors meet to buy and sell securities
Primary/Secondary Market
1st securities bought through investment bank/other representative, sold in secondary market from existing securities
Primary Market
a market in which an investor purchases securities from a corporation through an investment bank or some other representative of the corporation
Private Corporation
shares are owned by a relatively small group of people and are not traded openly in stock markets
Over-the-Counter Market
a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange
Market Order
a request to buy or sell the stock at the current market value
Public Corporation
sells its shares openly in stock markets where anyone can buy them
Current Yield
the annual dividend paid by an investment divided by the investment's current market value expressed as a percentage
Total Return
a calculation that includes the annual dividend as well as any increase or decrease in the original purchase price of the investment
Capitalization
the total amount of stocks and bonds issued by a corporation
Total Return Percent
Dividends + (sale price-purchase price)/ Purchase Price
Current Yield Equation
Current Dividends/Current Price