Question | Answer |
Blue Chip | A common stock of a nationaly known company whose value and dividends are reliable |
Bid | a formal proposal to buy a stock at a specified price |
Limit Order | buying a stock at a price you set |
Bear Market | a stock market with declining stock prices |
Bond | a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money |
Stop Order | an order to a broker to sell (buy) when the price of a stock rises (falls) to a designated level |
Commission | payment to a stock broker for bringing together (brokering) the buyer and the seller |
Broker | person who buys and sells goods or shares for others |
P/E Ratio | a valuation of a company's current share price compared to its share price earnings |
Common Stock | the basic type of stock issued to the stockholders of a corporation |
Corporation | an organization that is authorized by law to carry on an activity but treated as though it were a single person |
Dividend | that part of the earnings of a corporation that is distributed to its shareholders |
Bull Market | a stock market with rising stock prices |
NASDAQ | Monitors fast moving technology and financial services stocks. Usually the companies are smaller and transactions occur over an electronic market. |
New York Stock Exchange | The largest and most prestigious stock exchange in the world. |
Volume | The number of shares bought and sold for the day |
Securities and Exchange Commission | Federal agency that reports to Congress and given responsibility for overseeing external financial reporting by publicy traded corporations. |
Selling Short | Investors who sell shares they do not own - "borrows" them from a broker - and holding them in hope of buying them back at a lower price and gaining a profit |
Wall Street | A street in the city of Manhattan, New York where several major brokerage firms and stock exchanges are located |
Head and Shoulders | A chart pattern in which there are three successive rallies which form the outline of a person's upper torso. This patternis used to alert investors that a stock price could be headed for a fall. |
Offer | The price an investor can buy from the market, also called the ASK PRICE. |
PEG Ratio | A stock's Price/Earnings ratio dividend by its projected earnings growth rate. |
Dow Jones | index of stock prices of select companies |
Share | any of the equal portions into which the capital stock of a corporation is divided and ownership of which is evidenced by a stock certificate |
Market Order | an order to a broker to sell or buy stocks or commodities at the prevailing market price |