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Stocks,Bonds,oh my!
| Question | Answer |
|---|---|
| NYSE, AMEX, NASDAQ | where stocks and bonds are sold |
| 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 |
| PE | is the price-earnings ratio, it is equal to the closing price per share divided by the net earnings per share (you want this to be high!) |
| coupon | is the interest rate for a bond |
| bond rating | as the bond rate goes up the coupon goes down |