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Chptr 8 economy
this is a review of chapter 8 in the third edition economics texbook
Question | Answer |
---|---|
Stock | A portion of a company that people buy and sell and invest in. |
Common stock | the most prevalent type of stock that companies offer and represents the true ownership of the firm. |
dividends | A distribution of a portion of the corporation's profits. |
preferred stock | the owners of this type of stock receive their dividends before the common shareholders, and should the corporation suffer financial failure, preferred shareholders receive their portion of any leftover revenue just ahead of the common shareholders. |
Stock broker | A person who generally works for a brokerage company and who specializes in buying and selling stocks on behalf of his clients. |
Commission | The fee in which a stock broker works works for. |
Floor traders | Stock traders that physically present on the trading floor to execute requested trades. |
initial public offering (IPO) | the thing at which the sale of a certain quantity of stock through the exchange takes place. |
stock exchanges | Where stocks were initially traded and sold between merchants. |
what does NYSE stand for? | New York Stock Exchange |
What does does the NASDAQ stand for? | National association of securities dealers automated quotations. |
What is the difference between the NYSE and the NASDAQ? | The NYSE has a physical location, while the NASDAQ |
Stock | A portion of a company that people buy and sell and invest in. |
Common stock | the most prevalent type of stock that companies offer and represents the true ownership of the firm. |
dividends | A distribution of a portion of the corporation's profits. |
preferred stock | the owners of this type of stock receive their dividends before the common shareholders, and should the corporation suffer financial failure, preferred shareholders receive their portion of any leftover revenue just ahead of the common shareholders. |
Stock broker | A person who generally works for a brokerage company and who specializes in buying and selling stocks on behalf of his clients. |
Commission | The fee in which a stock broker works works for. |
Floor traders | Stock traders that physically present on the trading floor to execute requested trades. |
initial public offering (IPO) | the thing at which the sale of a certain quantity of stock through the exchange takes place. |
stock exchanges | Where stocks were initially traded and sold between merchants. |
what does NYSE stand for? | New York Stock Exchange |
What does does the NASDAQ stand for? | National association of securities dealers automated quotations. |
What is the difference between the NYSE and NASDAQ? | The NASDAQ does not have a physical location, while NYSE does. |
What does Amex stand for? | American stock exchange (this is a lesser known but still reputable American market stock exchange) |
Stock index | A group of stocks. |
What does DJIA stand for? | Dow Jones industrial average |
Who created the Dow Jones Industrial Average? | Charles Dow |
What is the DJIA? | An example of a stock index published by an investment company which has an index consisting of the prices of thirty stocks. |
What does S&P 500 stand for? | Standard and poor's 500 |
What is the S&P 500? | A commonly reported investment index that includes 500 stocks and is intended to give an even broader perspective in the United States. |
Stock portfolio | A collection of stocks from different individual corporations. |
Mutual funds | privately owned stock portfolios. |
Investment bank | An organization that helps a business issue stock to the public for the first time |
Bear market | A falling stock market in which investors are selling stocks |
Bull market | A rising stock market in which investors are buying stocks. |
speculation | short-term price changes in the stock investment that people buy in hopes of getting a higher price for it later on. |
Speculative bubble | When sock prices rise in an industry or across the entire market simply because of expectations and they rise in excess of the corporations' true value. |
What does SEC stand for? | Securities and Exchanage commission |
What is the purpose of the Securities and exchange commission? | It was put in place so that the great depression would not happen again; in was created to ensure that corporations provided accurate and current information to the public about their financial situations and their business dealings. |