Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 16 Investing
| Question | Answer |
|---|---|
| Bear Market | a market in which prices are falling, encouraging selling. |
| Bull Market | A bull market is a financial market of a group of securities in which prices are rising or are expected to rise |
| Par Value | the nominal value of a bond, share of stock, or a coupon as indicated in writing on the document or specified by charter. |
| Stock | is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings |
| Common Stock | shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company. |
| Preferred Stock | stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends. |
| Blue Chip Stock | is the stock of a large, well-established and financially sound company that has operated for many years. |
| Dividends | is a distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders |
| Price/Earnings Ratio | the current market price of a company share divided by the earnings per share of the company. |
| Stock Split | an issue of new shares in a company to existing shareholders in proportion to their current holdings. |
| Stock Broker | a broker who buys and sells securities on a stock exchange on behalf of clients. |
| Ticker Symbol | is an arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. |
| Mutual Funds | pooling fund of a large group of investors--is a form of financial intermediary |
| lemon | a disappointing investment |
| DJIA | Dow Jones Industrial Average |
| NYSE | Largest stock exchange in the USA. |
| Dow Jones Industrial (DJIA) | widely cited indicator of day to day stock market activity, closely connected to changes in consumer credit, and business expectations |
| IPO | when a company wants to raise money they sell shares to an investment bank in this primary market |
| yield | dividend per share divided by the closing price per share |
| coupon rate | is the interest rate for a bond |
| bond rating | as the bond rate goes up the coupon goes down |
| Moody's | One bond rating agency. |
| options | This allows a person to buy/sell a stock at a specific price on a specific date. |
| call option | a contract between a buyer and a seller to purchase a certain stock at a certain price up until a defined expiration date. |
| put option | a contract between a buyer and a seller to sell a certain stock at a certain price up until a defined expiration date. |
| futures | A standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument |
| Collectibles | The highest risk investment. |
| diversification | Rather than concentrate money in a single company, industry, sector or asset class, investors spread their investments across a range of different companies, industries and asset classes. |
Created by:
clew01