Basic Definition in the Stock Market Flashcards
These are units of ownership in part of a company’s total stock.
Shares
A collection of stocks or bonds combined in a single fund that can be purchased and traded on major stock exchanges.
Exchange Traded Funds (ETF)
A person or company that owns at least one share of a company’s stock.
Shareholder
Are funds that follow the performance of a specific benchmark or stock market index. When you invest in this, your money is used to invest in every company in the index.
Index Funds
When you expand your portfolio in many different industries. An investment strategy that divides investment funds across a variety of assets in order to minimize overall risk.
Diversification
The price a trader is willing to pay for shares of a stock or other assets.
Bid
A portion of earnings paid out to a company’s shareholders. Regular profit sharing payments made between a company and its investors.
Dividend
A record-keeping database in which transactions made in Bitcoin or other cryptocurrencies are recorded.
Blockchain
A type of security loaned by an investor to a borrower like a company or government used to fund its operations.
Bond
A market condition in which prices are expected to rise.
Bull Market
The market value of a publicly traded company’s outstanding shares.
Capitalization
Refers to the profit earned after selling an asset or investment for a higher price then you paid for it.
Capital Gains
Is the rate of increase in prices for goods and services in the economy.
Inflation
Refers to a previously private company the becomes public by selling stock shares on the stock market.
Initial Public Offering (IPO)
Measures how quickly and easily a stock can be bought or sold without impacting its price.
Liquidity
