Flashcards › Stock Market Terms

Stock Market Market where transactions involving the buying and selling of stock shares issued by a company Stock A share of ownership in assets of a business Portfolio Diversification A person that invest in a variety of saving and investing tools to minimize risk Investment Risk The uncertainty of the outcome of an investment Rate of Return The increase or decrease in the origional purchase price of an investment Stock Split Shares owned by existing stockholders are divided into larger number of shares Dividends Earnings of a company distributed to the stockholders Market Price The amount a willing buyer will pay a willing seller for a stock Growth Stock A stock from a company which has a consistent record of rapid growth and earnings in all economic conditions Income Stock A stock that pays higher than average dividends because the company chooses to retail only small amount of the profits Value Stock Stock from a company which has a low market price considering past performance and value of current assets Countercyclical Stock A stock from a company that performs well in good economic conditions and bad because their products are always in demand Cyclical Stock A stock which is greatly influenced by the economic business cycle. Stock does well in Bull Markets and bad in Bear Markets. Speculative Stock Very high risk stockfrom a company with potential for large earnings in the future Blue Chip Stock Stock from a nationally recognized company that often dominate the industry usually having revenue of $1 Billion or more Book Value Net worth of company Earnings per share How much income a company has available to pay in dividends and reinvest as retained earnings on a per share basis PE Ratio or Price per Earnings Ratio Relationship between the price of one share of stock and the annual earnings of the company Dow Jones Industrial Average Oldest indicator of the ups and downs of the stock market. List the 30 leading Blue Chip stocks. NASDAQ Monitors fast moving technology and financial services stocks. Usually companies are smaller and trasactions occur over an electronic market. New York Stock Exchange Oldest and largest exchange with the strictest company standards AMerican Stock Exchange The second largest exchange with less stringent requirements for younger, smaller companies to be listed Bear Market The market is doing poorly and investors are not confident in the economy. Bull Market The market is doing well and investors are optimistic about the economy and purchasing stock. Close The price of the last share sold for the day. Stock Market vocabulary for Chapter 8-10