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BUSN-1010 Conroy 17
Chapter 17
Question | Answer |
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Brokers | Some of the people on the trading floor who for a commission will execute buy and sell orders for stock placed by other people and organizations. |
Capital Gain | The return made by selling a security for a price that is higher than the price the investor paid for it. |
Common Stock | Stockholders are able to vote on major company decisions, but they get last claim on the company's dividends and last claim on any remaining assets if the company goes out of business and its assets are sold. |
Diversification | Choosing securities in such a way that a loss in one investment will not have a devastating impact on one's total portfolio. |
DJIA | Aka, the Dow. A general measure of the movement of U.S. stock prices, and an index of the average of prices of the stocks of 30 large corporations. |
Institutional Investors | Large and powerful organizations such as pension funds and insurance companies, which invest their own or others' funds. |
Market Order | Telling a broker to buy or sell a particular security at the best available price. |
Portfolio | The collection of securities representing a person's investments. |
Stock Exchange | A financial marketplace where members buy and sell stocks. |
Yield | Income from securities, calculated by dividing dividend or income by the market price. |
Initial Public Offering (IPO) | When a corporation's stock is offered for sale for the first time. |