39 terms

Chs 10 & 11 Vocab

STUDY
PLAY

Terms in this set (...)

Emergency Fund
a savings account that you can access quickly to pay unexpected expenses or emergencies
Speculative Investment
high risk investment that might earn a large profit in a short time
Dividends
distributions of money, stock, other property that a corporation pays to stockholders
Retained Earnings
profits that a company reinvests, usually for expansion or research/development
Investment Liquidity
ability to buy or sell an investment quickly without significantly reducing its value
Equity Capital
money given to businesses by their owners; used so they can operate
Common Stock
unit of ownership of a company that entitles the stockholder to voting privileges
Preferred Stock
stock that gives owner the advantage of receiving cash dividends before common stockholders do
Corporate Bond
corporation's written pledge to repay money with interest
Government Bond
government's written pledge to repay money with interest
Mutual Fund
investment in which investors pool money to buy stocks, bonds, other securities selected by managers who work for investment companies
Diversification
spreading your assets among different types of investments to reduce risk
Financial Planner
person trained to offer financial help and advice
Tax-exempt Income
income not taxed
Tax-Deferred Income
income taxed at a later date
Capital Gain
profit from sale of assets like stocks, bonds, real estate
Capital Loss
sale of an investment for less than its purchase price
Prospectus
document that discloses information about a company's earnings, assets and liabilities, products and services, management qualifications
Securities
investments (stocks, bonds, mutual funds, etc.) that are bought and sold on the stock market
Private Corporation
company that issues stock to a small group of people
Public Corporation
sells its shares openly in the market
Par Value
assigned dollar value that is printed on a stock certificate
Blue-Chip Stock
safe investment that generally attracts conservative investors
Income Stock
pays higher than average dividends compared to other stock issues
Growth Stock
issued by a corporation whose potential earnings may be greater than the national avg earnings for other corps.
Cyclical Stock
has a market value that usually reflects the state of the economy
Defensive Stock
stock that remains stable during economic declines
Mutual Fund
investment in which investors pool money to buy stocks, bonds, other securities selected by managers who work for investment companies
Large-Cap Stock
Stock from a corporation with a lot of stock shares and capitilization
Capitilization
total amount of stocks and bonds issued by a corporation
Small-Cap Stock
issued by a company with a Capitalization of $500 million or less
Penny Stock
typically sells for less than $1/share but can go for as much as $10
Bull Market
market condition when investors are optimistic about the economy and buy stocks
Bear Market
market condition when investors are pessimistic about economy and sell stocks
Current Yield
annual dividend or interest of an investment dividend by the current market value
Total Return
calculation that includes the annual dividend and any in/decrease in original purchase price
Earnings per Share
Corporation's net earnings divided by number of outstanding shares of common stock
Price-Earnings Ratio
price of 1 share of stock divided by the corp's earnings per share of stock over the last 12 months
Securities Exchange
marketplace where brokers buy and sell securities