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Stock vocabulary
Stock words and their definition
| Word | Definition |
|---|---|
| Dividend | A part of a company's profit (earnings) that might be payed to stock holders. |
| Liquidity | Converting asset-in this case stock- when they get more value in money or less. |
| Private Company | A company that is owned by one person or a small group of investors that does not sell stock to public. |
| Profit/earnings | The amount of money that remains after subtracting the company's expenses. |
| Public Company | A company owned by investors who sells stock. |
| Risk | The chance of losing all or some of your money. |
| Stock | Ownership of shares in a company to raise money. |
| Share holders/Stock holders | One who owns shares in a company. |
| Diversification | An investment stratagy when you spread your money to different industries. |
| Indstry | A group of companies that make the same products. |
| Portfolio | A collection of investments owned by one induvidual or and organization. |
| Bonds | An IOU that a company or government sells when it borrows money. Bonds are called fixed income because it payes the fixed amout of money. |
| High Yeild Bonds | To attract investors the issuers of this bond pay more, they are below investment grade and called 'Junk bonds". |
| Issuer | An entity which issues to pay principal and intereston debt security. |
| Interest Rate | Compenation paid or to be paid for the use of money. |
| IOU (I owe you) | Means that someone needs to pay you or you are in debt. |
| Maturity | The date when the principle is payable. |
| Par Value | The principle amount of bond or note due to maturity. |
| Principle | The face amount of bond, payable at maturity. |
| Trade Date | The date when the purchase or sell of bond is transfered |
| Mutual Funds | An investment that takes the saver's money and put it into a company that they have proffecinaly reserched, and they choose what they hink is best for their fellow shareholders. |