Create an account
Ownership of or equity in a company; a share of stock represents a specific portion of ownership
An estimate of what a company is actually worth, independent of book and market values
Act of dividing a share into two or more new shares and reducing the market value by the same ratio
Amount of money, or principle, a bond buyer lends to a bond issuer; also known as par value or denomination
Short- term debt securities issued by the federal government; also referred to as T- bills
Debt securities issues by the federal government that are repaid within 1 to 10 years after issuance
( TIPS) Treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation
Treasury inflation- protected securities
Bonds issued by states, cities, and various government agencies to fund public projects
Spreading investments across enough different vehicles to protect against significant declines in any one vehicle
Financial instruments that pool money from many investors to buy a diversified mix of stocks, bonds, or other securities
( ETFs) Mutual funds whose shares are traded on public exchanges in the same way as stocks
exchange traded funds
( NAV) A mutual fund's assets minus its liabilities; usually expressed as NAV per share
net asset value
Contracts whose value is derived from some other entity ( usually an asset of some kind, but not necessarily); used to hedge against or speculate on risk
The purchased right— but not the obligation— to buy or sell a specified number of shares of a stock at a predetermined price during a specified period
Contracts to buy or sell a financial instrument ( such as stocks, Treasury bonds, and foreign currencies) for a set price at a future date
futures Contracts to buy or sell specific amounts of commodities for a set price at a future date
The New York Stock Exchange, one of the oldest and most widely recognized exchanges in the world
The collective buying and selling of bonds; most bond trading is done over the counter, rather than in organized exchanges
Over-the-counter marketplace for short- term debt instruments such as Treasury bills and commercial paper
Includes exchange trading ( for futures and some options) and OTC trading ( for all other derivatives, at least currently)
Certified expert who is legally registered to buy and sell securities on behalf of individual and institutional investors
Type of securities order that instructs the broker to buy or sell at the best price that can be negotiated at the moment
Order that stipulates the highest or lowest price at which the customer is willing to trade securities
Order to sell a stock when its price falls to a particular point to limit an investor's losses
Borrowing money from brokers to buy stock, paying interest on the borrowed money, and leaving the stock with the broker as collateral
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