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Investing in Stocks
| Term | Definition |
|---|---|
| Stock | a part of a company that is sold and traded |
| Stock | a part of a company that is sold and traded |
| Securities Exchange | a company that creates the opportunity for potential buys and sellers of a security to come together for trading |
| Limit Order | a direction given to a broker to buy or sell a security or commodity at a specified price or better |
| Limit Order | a direction given to a broker to buy or sell a security or commodity at a specified price or better |
| Direct Investment | between the investor and the company |
| Direct Investment | between the investor and the company |
| Over the Counter Market | refers to stocks that trade via a dealer network as opposed to on a centralized exchange |
| Bull Market | a period of risking stock prices and positive investing |
| Bull Market | a period of risking stock prices and positive investing |
| Bear Market | a market characterized by falling prices and poor investing |
| Stockholder | owners on a corporation |
| Bull Market | a period of risking stock prices and positive investing |
| Market Order | an order to buy/sell stock at its normal market price |
| Stockholder | owners on a corporation |
| Market Value | Marketplace price of a stock |
| Market Order | an order to buy/sell stock at its normal market price |
| Odd Lot | less than 100 shares of stock |
| Market Value | Marketplace price of a stock |
| Par Value | an assigned dollar amount that is printed on a stock certificate |
| Odd Lot | less than 100 shares of stock |
| proxy | stockholders written authorization to transfer voting rights to someone else, usually the company manager |
| Round Lot | shares bought/sold in multiples of 100 |
| proxy | stockholders written authorization to transfer voting rights to someone else, usually the company manager |
| Par Value | an assigned dollar amount that is printed on a stock certificate |
| Par Value | an assigned dollar amount that is printed on a stock certificate |
| speculative investment | investment with a chance of making quick profit |
| dividend reinvestment | using dividends previously earned on stocks to buy more stocks |
| Dividends | part of the corporations profit that is paid to the stockholders |
| return on investment | profit earned on a stock as a percentage of the total cost of buying the stock |
| price / earnings interest | price of a share of stock divided by the corporations earning per share over the last year |
| earnings per share | a corporation after-tax earnings divided by the number of outstanding shares of common stock |
| stock index | a benchmark used to judge the performance of investments |
| stockbroker | an employee if a brokerage firm who buys and sells securities or investors |
| Stock Split | increase in the number of outstanding shares of a companys stock |
| tick symbol | abbreviated term that is used to identify a stock for trading purposes |