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Investing - Unit 3
Investing - Stocks
| Question | Answer |
|---|---|
| Companies that do not issue stock | Private Companies |
| Companies that issue stock to investors | Public Companies |
| An investment banker underwrites the inital offering of stock | Initial Public Offering |
| An informational booklet about the companies financial information | Prospectus |
| Shares of ownership in a public corporation that have voting rights and can pay dividends | Common Stock |
| Shares which pay fixed dividends, no voting rights, and dividends are stated as a fixed percentage | Preferred Stock |
| Price per share / Earnings per share | Price/Earnings Ratio |
| Measures a stocks volatitilty compared to overall changes in the stock market | Beta |
| Consistent record of rapid growth and earnings | Growth Stocks |
| Represents the technology sector including wireless communication, data, software, etc | Tech Sector |
| Pays higher than average dividends | income Stocks |
| Influenced by changes in the economic cycle | Cyclical Stocks |
| Provide consisetent returns even when the economy is suffering | Countercyclical Stocks |
| Companies with potential for substantial earnings | Speculative Stocks |
| Nationally recognized companies with long records of profit and dividend payments | Blue Chip Stocks |
| Over $5 Billion Market Cap | large Cap |
| $1 to $5 Billion Market Cap | Mid Cap |
| Under $250 Million Market Cap | Small Cap |
| Dow Jones, Standard & Poor's 500, National Association of Security Dealers Automated Quotations | 3 Basic Market Indicators |
| Tracks the 30 leading Industrial Blue Chip Stocks | Dow |
| Covers market activity for 500 stocks | S&P 500 |
| More accurate than Dow because it evaluates a greater variety | S&P 500 |
| Monitors fast moving Tech Companies | NASDAQ |
| Monitors speculative stocks, shows dramatic ups and downs | NASDAQ |
| The market is doing well, investors are optimistic and purchasing stocks | Bull Market |
| The market is doing poorly, investors are not purchasing stocks or selling stocks | Bear Market |
| Brokers buy and sell stocks | New York Stock Exchange, American Stock Exchange, Regional Stock Exchanges, NASDAQ |