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stock vocabulary

Stock Words and Definitions

WordDefinition
Dividend A portion of a company's profits (earnings) that may be paid to stockholders.
Liquidity The ease of converting an asset-in this case stock-into money in a timely fashion with little or no less in value.
Private Company A company owned by a person, family, or small group of investors that does not sell stock to the company.
Profit/Earnings The amount of money that remains after subtracting the companies expenses from its revenue.
Public Company A company owned by investors who buy shares of stock, usually through a stock exchange.
Risk The chance of loosing all or part of the value of an investment.
Stock Ownership of shares in a business. Companies issue stock to raise money for a variety of reasons including expanding, or modernizing their operations.
Stock Holders One who owns or shares in a business.