1 Test Flashcards
Yield
How much income an investment generates, how much cash returns to stockholders.
Bull market
When the prices of stocks are generally rising.
Bear market
When the prices of stocks are generally declining.
Open
The starting period of trading.
Day’s range
The difference between the high and low prices of the day, represented as a percent of the closing value.
IPO (Initial Public Offering)
When a private company first sells shares of stock to the public.
Mutual fund
A security where money is pooled from numerous investors and invests that money in a portfolio of securities.
PE ratio
Stocks per share divided by earnings per share. Also known as the ratio of share price of a stock to its earnings per share.
Stock
A share in the ownership of a company, including a claim on the company’s earnings and assets.
Beta
The measure of volatility or risk.
ROI (Return of Investment)
(profit minus cost) / cost . Can be used to evaluate and compare any form of interest.
Ways to make money from the stock market.
Dividends: a reward paid to the shareholders for their investment in a company’s equity, and it usually originates from the company’s net profits, and selling stocks.
Types of investments:
Mutual funds, stocks, ETFs. and bonds
Corporation
A company legally separate from the stockholders who own it.
