Ch 3- Stock Market

Question 0

Equities

Answer 0

Claims of ownership in a corporation

Question 1

Share

Answer 1

Portion of stock

Question 2

Capital gain

Answer 2

Difference between higher selling price and lower purchasing price resulting in a financial gain

Question 3

Capital loss

Answer 3

Difference between a lower selling price on the higher purchasing price resulting in a financial loss

Question 4

Stock split

Answer 4

The division of a single share of stock into more than one share

Question 5

Stockbroker

Answer 5

A person who links buyers and sellers of stock

Question 6

Brokerage firm

Answer 6

Business that specializes in trading stock

Question 7

Stock exchange

Answer 7

Market for buying and selling stock

Question 8

NASDAQ

Answer 8

American market for OTC securities

Question 9

OTC market

Answer 9

Electronic marketplace for stocks and bonds that are not listed on organized exchanges

Question 10

Bull market

Answer 10

Steady rise in the market over a period of time

Question 11

Bear market

Answer 11

Steady drop in the market over a period of time

Question 12

The DOW

Answer 12

Stock market index that shows how 30 publicly owned companies based in the US have traded

Question 13

S & P 500

Answer 13

Stock market index that shows how 500 barge company’s stock change in price

Question 14

Great crash

Answer 14

Collapse of the stock market in 1929

Question 15

Speculation

Answer 15

Practice of making high risk investments with borrowed money

Question 16

Securities and Exchange Commission

Answer 16

Independent government agency that regulates financial markets and investing companies

Question 17

Dividend

Answer 17

Portion of corporate profits paid to stockholders

Question 18

Price-to-earnings ratio P/E

Answer 18

Current market price divided by earnings per-share

Question 19

Beta

Answer 19

Calculating the expected return