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Personal Finance #4

HHS - Terms for Saving/Investing Unit

QuestionAnswer
A share of ownership in a company Common Stock
The fee a broker and/or stockbroker collects for helping people buy and sell a stock Commission
An individual or business that specializes in bringing together buyers and sellers of stocks Broker
Sale of stock borrowed from a broker Short Sale
Money earned on your original deposit and on the interest payments you have received on that deposit in the past Compound Interest
A person who buys the product or service offered by a business Customer
The amount of profit a company pays to its stockholders Dividends
The rival efforts of two or more people or businesses acting independently to get the business of others by offering a better price or higher level of quality in goods or services Competition
The different quantities of a resource, good, or service that will be purchased at various possible prices during a specific time period Demand
An increase above the original purchase price in the money received from the sale of stock Gain
The amount paid for borrowing someone else's money Interest
Stocks that have been approved and listed for trading by one of the organized stock exchanges Listed Stocks
The putting to use of money, capital, or time in the hope of getting a profitable return Investment
An order to buy or sell a stock at a certain (or better) price Limit Order
A group of companies that produce or sell the same kind of product or service Industry
A decrease from the original purchase price in the money received from the sale of a stock Loss
A selection of investments used to produce an income or return Portfolio
Those markets in which stocks are offered for sale for the first time Primary Market
The process through which buyers and sellers exchange with one another Market
A market in which the public trades stocks that someone already owns Stock Market
The different quantities of a resource, good, or service that will be offered for sale at various prices during a specific time period Supply
Those markets in which stocks can be bought and sold once they are approved for public sale Secondary Markets
A trade or transaction between a willing buyer and a willing seller Voluntary Exchange
The chance of losing money Risk
The amount of profit a company keeps to buy new equipment, buildings, and other resources that the company uses to expand and modernize Retained Earnings
Created by: deblock