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stock market terms
vocabulary
Question | Answer |
---|---|
stock | a piece of ownership of a company |
share | one individual piece of stock |
Dow Jones | an averaged number representing the values of 30 U.S. "blue-chip" stocks. The DJIA is the most well-known market indicator in the world |
Nasdaq | refers to two different things. First is the largest electronic stock market in the U.S. Second it is the popular stock index |
Big Board | another name for the New York Stock Exchange |
S&P 500 | a stock index published by Standard & Poor's. It measures 500 U.S. stocks that are supposed to be representative of the overall stock market |
bull market | occurs when stock prices are rising faster than their historical averages. It can last months or even years. |
bear market | occurs when stock prices are falling faster than their historical averages. It can last months or even years. It is the opposite of a bull market. |
market crash | when stock prices have dropped dramatically. One of the worst crashes was Black Tuesday, which occurred on October 29, 1929 and led to the Great Depression |
insider trading | when anyone, including employees, trades using non-public company information. This is considered illegal |