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14-17
| Term | Definition |
|---|---|
| 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 |
Created by:
asansing613