c11 stocks Flashcards
investments bought and sold on the stock market. including stocks, bonds, mutual funds
securities
a company that issues stock to a small group of people
private corporation
a company that sells its shares openly in the stock market, anyone can buy.
public corporation
assigned dollar value that is printed on a stock certificate
par value
preferred stock you can later convert to common stock
convertible preferred stock
a stock into a corporation/government but it is not called a stock. “participation certificate”
participation feature
safe investments that attract conservative investors, strong and respected companies
blue chip stocks
stocks that pay higher than average dividends
income stock
stock by a corporation whose earnings are higher than average. reinvest their money and do not give dividends
growth stock
stock with market value that reflects the state of the economy
cyclical stocks
stock that remains stable during decline in the economy
defensive stock
stock from a company that has issued a large number of shares and large amount of capitalization
large cap stock
stock from a company without capitalization of $500 million or less
small cap stock
stock that sells for a dollar or less
penny stock
total amount of stocks and bonds issued by a corporation
capitalization
market condition when people are optimistic abt the economy and do buy stocks
bull market
market condition when people are pessimistic and do not buy stocks
bear market
annual dividend(interest of an investment) / stock price(current market value)
current yield
capital gain + current return
total return
net earnings(profit) / number of shares
earning per share
price of one share / eps
P/e ratio
a market where investors purchase new security issues from a corporation through an investment bank or other company representative
primary market
a market where brokers who represent investors meet to buy and sell securities
securities exchange
a network of dealers who buy and sell the stocks of corporations that are not listen on a securities exchange
otc market
collection of all securities held by an investor
portfolio
