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Stocks Vocab!!!

Stock Vocabulary

WordsDefinition
Dividend Portion of a company's profits (earnings) that may be paid to stockholders.
Liquidity The ease of converting stocks, CDs, etc. into cash.
Private Company A company that does not sell stocks.
Profit/Earnings The amount of money left over after paying expenses.
Public Company A company that sells stocks.
Risk The chance of losing all or part of the value of an investment.
Stock Ownership of shares in a business. The company does that to raise money.
Stockholder One who owns stock in a business.
Diversification An investment strategy in which you spread your investment dollars among industry sectors. Reducing risk by combining different investments whose prices aren't likely to move in step with one another.
Industry A group of compaines that make the same products, i.e. pharmaceutical compaines
Created by: vanravensbergtj