Econ set 1 Flashcards by Evie Prof.

Q

Stock

A

Ownership of a company

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Q

Shareholder

A

If you buy a stock

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Q

Dividend

A

Earnings from a company

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Q

Portfolio

A

collection of all your investments

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Q

Diversification

A

Spreading your money out over different investments

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Q

Return

A

How much you GAIN or LOOSE on an investment

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Q

Capital gain

A

what you earn from an investiment

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Q

IPO

A

Fiist sale of a company

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Q

Market Cap

A

How much every stock of that company is worth

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Q

Blue Chip Stock

A

well established companies stock

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Q

Volume

A

How many stocks are traded in a day or so

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Q

Broker

A

someone who makes your investments

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Q

index/index fund

A

Stocks that are used as a measurement of the stock market

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Q

Bond

A

Loaning the government or a company money

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Q

Mutual fund

A

A bunch of investments brought together

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Q

Volatility

A

How freucuintly the price changes

Q

yeild

A

the income return on an investiment

Q

liquidity

A

how quickly an investment can be turned into cash