11 Key Terms - Part 3 Flashcards
Involves trading different currencies.”
Forex
They turn around and invest your money in dozens, hundreds or even thousands of stocks.
Hedge Funds/Mutual Funds
Like stocks, because you buy and sell shares, but they’re also like mutual funds, because they track an index.
ETFs
American depository receipts for foreign companies that trade in the U.S.
ADRs
A measurement of the relationship between the price of a stock and the movement of the whole market. If stock XYZ has a ___ 1.5, that means that for every 1 point move in the market, stock XYZ moves 1.5 points and vice versa.
Beta
A person who buys or sells an investment for you, in exchange for a fee.
Broker
The practice of buying and selling within the same trading day, before the close of the markets on that day.
Day Trading
This is a portion of a company’s earnings that is paid to shareholders, the people that own that company’s stock, on a quarterly or annual basis.
Dividend
A place in which different investments are traded. The most well-known in the United States are the New York Stock Exchange and the NASDAQ.
Exchange
When an order to buy or sell has been completed. If you put in an order to sell 100 shares, this means that all 100 shares have been sold.
Execution
A margin account lets a person borrow money (take out a loan) from a broker to purchase an investment. The difference between the amount of the loan and the price of the securities is called the margin
Margin
