Chapter 9 Flashcards
A company that issues stock to a small group of people
Private corporation (closely held corporation)
All the investments, stocks, bonds, mutual funds, options, and commodities that are bought and sold on the stock market
Securities
A corporation that sells its shares openly in stock markets, where anybody can open them
Public corporation
An assigned dollar value that is printed on a stock certificate
Par value
A safe investment that generally attracts conservative investors
Blue chip stock
Higher than average dividends compared to other stocks
Income stock
Issued by a corporation whose potential earnings may be higher than the average earning predicted for all the corporations in the country
Growth stock
A market value that tends to reflect the state of the economy
Cyclical stock
A stock that remains stable during declines in the economy
Defensive stock
Stock from a corporation that has issued a large number of shares of stock and has large amounts of capitalization
Large cap stock
The total amount of stocks and bonds issued by a corporation
Capitalization
A stock issues by a company with a capitalization of 500 million dollars or less
Small cap stock
A stock that typically sells for less than a dollar a share, although it can sell up to as much as $10 a share
Penny stock
A market condition that occurs when investors are optimistic about the economy and buy stocks
Bull market
A market condition that occurs when investors are pessimistic about the economy and sell stocks
Bear market
