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11-3 Vocabulary--JW
Vocabulary--JW
Question | Answer |
---|---|
Stock Exchange | A secondary market where securities (stocks & bonds) are bought and sold. |
Capital Gains | Gains (money)made from the sale of securities. |
Common Stock | A share of ownership in a corporation, giving stockholders voting rights and a share of the profits. |
Preferred Stock | A share of ownership in a corporation giving a share of the profits (paid before common stock) but with no voting rights. |
Stockbroker | An agent who specializes in the sale of stocks and bonds; works for a commission. |
Over-the-counter | A market for stocks and bonds that are not traded on a formal stock exchange. NASDAQ is such a market. |
Futures | A contract to buy or sell a commodity at a specified future date and price. Example: A farmer might use a futures contract to lock in the price of corn that gives him a profit. |
Option | An option is similar to a futures contract except, the investor has the option or right to purchase the commodity but isn't obligated to. |
Stock Index | A measure of the change in prices for a specific set of stocks. Example: The Dow is a stock index. |
Bull Market | Stock prices are rising steadily |
Bear Market | The trend in stock prices is a steady decline. |