Investment in Stocks Flashcards

1
Q

refers to the acquisition of shares in corporations with the goal of earning profit either through their sale or periodic dividends.

A

Investment in Stocks

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2
Q

Represents basic ownership in a corporation.

A

Common Stock

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3
Q

A portion of owners’ equity with preference over common stock in terms of dividends and asset claims.

A

Preferred Stock

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4
Q

Stocks are classified according to the business sector (5)

A

Financials
Industrials
Property
Services
Mining & Oil

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5
Q

Stable, well-established companies with consistent earnings.

A

Blue Chips

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6
Q

Companies expected to grow faster than the market.

A

Growth Stocks

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7
Q

Prices move with the economy (e.g., travel industry).

A

Cyclical Stocks

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8
Q

Earnings remain steady despite economic shifts (e.g., utilities).

A

Defensive Stocks

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9
Q

High-risk, high-reward stocks with future potential.

A

Speculative Stocks

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10
Q

Large companies with high market value

A

First Liners

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11
Q

Medium-sized companies

A

Second Liners

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12
Q

Smaller companies.

A

Third Liners

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13
Q

Traded on the stock exchange.

A

Listed Stocks

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14
Q

Not traded on the stock exchange.

A

Unlisted Stocks

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15
Q

(?) Stocks: For Filipinos only

A

Class A

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16
Q

(?) Stocks: Available to foreigners.

A

Class B

17
Q

Nominal value stated on the stock certificate.

A

Par Value

18
Q

Value based on the company’s books of accounts.

A

Value based on the company’s books of accounts.

19
Q

Assets minus liabilities.

A

Net Asset Value

20
Q

Where shares are bought and sold.

A

Stock Market

21
Q

Organized marketplace (e.g., Philippine Stock Exchange).

A

Stock Exchange

22
Q

Licensed individual/company facilitating stock trades for a commission.

A

Stockbroker

23
Q

Buys and sells stocks for personal gain.

A

Stock Dealer

24
Q

Processes payments and transfers between brokers

A

Clearing House

25
Q

Manages ownership transfers and dividend payments.

A

Stock Transfer Agent

26
Q

The speed at which stock prices change.

A

Price Volatility

27
Q

Stock prices rise after a decline.

A

Technical Rebound

28
Q

Prices drop after a rise due to the absence of good news.

A

Technical Correction

29
Q

Lowest price a stock commands.

A

Price Support

30
Q

Highest price a stock commands.

A

Price Resistance

30
Q

Prices trend upwards; optimism prevails.

A

Bullish Market

31
Q

Prices drop continuously; pessimism dominates.

A

Bearish Market