Chapter 14 vocab Flashcards
brokerage
A firm that provides access to the stock market
Commission
A fee charged by a brokerage firm for carrying out a transaction
diversification
The process of investing in multiple investments
Dividend
The distribution of cash to shareholders
securities and exchange commission
A government agency that regulates and monitors stock market
shareholder
People who own stock in a company
treasury bonds
Issued by the US treasury department to finance the debt of the government
investment
Something acquired with the goal of making money
initial public offering
The first sales of a stock issued by a company to raise money for business operations, expansion, and other needs.
primary market
The initial sale of a financial assets in which accompany receives money during IPO
secondary market
Transactions that take place after IPO
New York Stock Exchange
In organized stock exchange in the secondary market in which stock sales occur
National Association of securities dealers automatic quotation
An organized stock exchange in the secondary market in which stocks occur
Institutional investors
One who trades, large volumes of stocks on behalf of large institutions
discount brokerage
This offers a reduced level of service, lower cost, and often ability to trade online
