Chapter 13 Flashcards
all-or-none order
A trade request executed only if the broker has enough shares, as a block, to fill the order in a single transaction
annual report
A publication for shareholders including balance sheet and income statement information for the company, along with statements from the company’s leadership
bear market
A period in which stock prices in general are consistently falling
bracketed order
A trailing-stop order with an upper price-limit trigger
Brokers
Individuals or firms hat act as an intermediary between a buyer and seller
bull market
A period in which stock prices in general are consistently rising
common stock
Stock that carries voting rights, but in the event of bankruptcy, owners receive their funds after preferred stockholders
current ratio
An indicator of liquidity; calculated as short-term assets divided by short-term liabilities
day order
A stock trade request that expire at the end of a trading day
debt ratio
A measurement of the proportion of total assets financed with debt’ calculated as total debt divided by total assets
dividend yield
Annual return received from dividends if you purchase the stock and the dividend payments remain unchanged
Dividends
Taxable payments declared by a company’s board of directors and distributed to its shareholders out of the company’s current or retained earnings
extended-hours order
A stock trade request placed after the close of market
good-til-canceled (GTC) order
A stock trade request that stays on the books until completely filled, canceled, or 60 calendar days have passed
growth stocks
Stocks of companies that are growing at a fast rate
limit order
A trade with a guaranteed price but not a guaranteed execution
market maker
A person who manages the buying and selling of stocks; also called a specialist
market order
A trade with a guaranteed execution but not a guaranteed price
odd lot
Any purchase or sale of less than 100 shares
open outcry
A method of public auction in which verbal bids and offers are made in the trading rings or pits
over-the-counter (OTC)
Stocks that trade via a dealer network rather than on a formal exchange
penny stock
Shares in a company that trade for less than $5.00; considered a high-risk investment
preferred stock
A stock that carries no voting rights but takes priority over common stock in the payment of dividends to stock-holders and upon liquidation
price-to-earnings (P/E) ratio
An assessment tool for valuing a stock in which market value per share is divided by earnings per share
round lot
A purchase or sale of 100 shares at a time
Securities
Tradable documents issued by a corporation, government, or other organization that show evidence of ownership
short-sell order
A stock trade request that involves selling borrowed stocks
Specialist
A person who manages the buying and selling of stocks’ also called a market maker
Stock
equal parts or shares of a company’s capital; a method of sharing ownership of a company with other investors
stop order
A trade request that automatically converts to a market order when a predetermined price (a stop price) is reached
10K
An extensive report filed each year with the SEC; covers a company’s operations and markets, disclosures, financial statements, and debt levels
10Q
A briefer version of the 10K, filed quarterly
times interest earned ratio
An indicator of financial leverage; calculated as earnings before interest and taxes (EBIT) divided by total interest payments
trailing-stop order
A stock trade request that depends on a predetermined price
value stocks
Underappreciated stocks in the market, typically with single-digit P/E ratios
