Question | Answer |
Stockholder | Someone who owns shares in a corporation, part owner... |
Dividends | Part of the profits are paid to the stockholders. |
Preferred stock | A class of stock that has priority over common stock in payment of dividends, usually limited to set rate. |
Common Stock | Represents general ownership in a corporation and a right to share in profits. No stated dividend rate, gets one vote per share. |
Stockbroker | A licensed specialist in the buying and selling of stocks and bonds. |
Commission | A fee paid for services. |
Full-service broker | Provides information about securities, works for brokerage company with research staff. |
Discount broker | Just places orders for securities, offers limited research. |
Securities | A term used to desribe stocks, bonds, mutual funds. |
Stock Exchange | A business that specializes in the selling and buying of securities. NYSE is an example. |
NASDAQ | An over-the-counter market...Electronic stock exchange, transactions happen through the phone lines and Internet. |
Market value | The price at which a share of stock can be bought or sold. |
Inflation | A general rise in prices. |
Interest rates | The cost of borrowing money. |
Equity Securities | Represents ownership...stocks |
Bond | A certificate representing a "promise to pay" a specific amount of interest on a specific due date. They borrow YOUR $. |
Maturity Date | The due date of the bond. |
Municipal bonds | City, county, states sell this type of bond to raise $. Tax exempt for investors. |
U.S. Savings Bond | For investors with small amounts of $ to invest. One of the safest type of bonds. |
Corporate Bonds | Bonds issued by corporations to raise investment capital. Borrows your $ at a cheaper interest rate, pays investor interest twice a year. |
Face value or maturity value | Amount being borrowed by the corporation issuing the bond. |
Mutual Fund | An investment fund set up and managed by a company that receives money from MANY investors. Spreads out the risk over many different securities. |