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Term
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14-17
Term | Definition |
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Stock Split | A procedure in which the shares of stock owned by existing stockholders are divided into a large number of shares |
Prefered stock | A type of stock that gives the owner the advantage of receiving cash dividends before common stockholders are paid any dividends |
Earning per share | a corporation's after-tax income divided by the number of outstanding shares of a firm's common stock |
price earning ratio | the price of share of stock dived by the corporations earnings per share of stock |
dividend payout | the percentage of a firm's earnings paid to stockholders in cash |
dividend yield | the annual dividend amount generated by an investment divided by the investment's current price per share |
annualized holding period yield | A yield calculation that takes into account the total return,the original investment, and the time the investmentis held |
Beta | A measure that compares the volatility associated with a specific stock issue with the volatility of the standard &poor's 500 Stock index |
Book Value | determined by deducting all liabilities from the corporations asset and dividing the remainder by the number of outstanding shares of common stock |
Market to book ratio | the current market value of one share of stock divided by the book value for one share of stock |
fundamental analysis | an investment practice based on the assumption that a stock's intrinsic or real value is determined by the company's future earnings |
Technical analysis | investment practice based on the assumption that a stocks market value is determined by the forces of supply and demand in the stock market as a whole |
(EMH)efficient market hypothesis | an investment theory based on the assumption that stock price movements are purely random |
Primary Market | purchase finacial securities |
investment bank | financial firm that assists corporations in raising funds, usually helping to sell new security issues |
initial public offering (IPO) | occurs when a corporation sells stock to the general public for the fist time |
secondary market | a market for existing financial securities that are currently traded among investors |
securities exchange | a marketplace where member brokers who represent investors meet to buy and sell securities |
specialist | buys or sells a particular stock in an effort to maintain an orderly market |
(OCT)OVER THE COUNTER MARKET | a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange |
Nasdaq | an electronic marketplace for approximately $3,200 different stocks |
Account Executive aka stockbroker | a licensed person who buys or sells securities for clients |
debenture | a bond that is backed only by the reputation of the issuing corporation |
mortgage bond | a corporation bond secured by various assets of issuing firm |
subordinated debenture | an unsecured bonds that gives bondholders s claim secondary to that of other designated bondholders w/respect to interest to interest payments, repayment, and assets |
convertible bond | a bond that can be exchanged, at the owners options, for a specified number of shares of the corporation's common stock |
Highly yield bonds | corporate bonds that pay higher interest, but also have a higher risk of default |
Call Feature | a feature that allows the corporation to call in or buy outstanding bonds outstanding bonds from current bondholders before the maturity date |
Sinking fund |