Definitions of stock market vocabulary

Question 1

The amount of money that someone would receive at the end of the year from a company they had invested in/ a share of the company’s profits for that year

Answer 1

Dividend

Question 2

Someone who invests (buys) into a business by purchasing shares in it. This gives the company more money to expand

Answer 2

Investor

Question 3

If you bought ‘shares’ in a company, then you would become one of these because you ‘held’ shares within their company

Answer 3

Shareholder

Question 4

People guessed which companies would do well (and make a profit) and invested in those they assumed would do well but at their own risk

Answer 4

Speculation

Question 5

When someone takes out a bank loan and buy shares- they would then pay back the
loan with the profits they made from selling their shares at a higher price than they bought them

Answer 5

Buying on the margin