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The taking over the control of one company by another.

Annual Report

Booklist issued after a company's fiscal year completed which describes how the business performed in the last year. .

Balance Sheet

A financial report which shows the company's assets and liabilities at the close of any given month.

Bear Market

Stock market that experiences a general decline in prices of stock. Not all stocks experience a decline in value, but most do.

Blue Chip

A nationally known company that has a consistent pattern of profit growth and dividend payments over the last several years.

Board of Directors

A group of people elected by the stockholders of a corporation to set the policies for the corporation.


Promise to repay a loan with interest at a specified time. Can be issued by corporations and government agencies at the local, state, and federal levels.

Bull Market

Stock market experiences a general rise in prices and stock trading volume for shares over a period of time.


The rules and regulations by which a corporation is governed.

Capital Gain

Profit from the sale of an asset.

Capital Loss

Loss from the sale of an asset.

Capital Stock

All shares issued by a company which includes both preferred and common stock.


A document which provides ownership of a stock or bond. This identifies the owner and number of shares owned on the face of the document.

Closed Corporation

A corporation whose stock is owned by and issued to members of the corporation alone.

Closing Price

The last price for a stock traded at the end of the trading day or session on an exchange.

Common Stock

Represents ownership in a publicly held company which entitles owners to dividends, voting rights on matters affecting the company, and in the elections of Boards members.


The decline in dollar value of equipment and buildings which have undergone obsolescence due to normal use over time.

Dow Jones

The average price of 30 selected industrial stocks, used as a measure of general market trends.


A payment from profits by a company's Board of Director's to shareholders.


The area at the stock exchange where stocks are traded.

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