Section 3 Flashcards
0
Q
Capital gain
A
Is profit made from the sale of securities.
1
Q
Stock exchange
A
Is a market where securities are bought and sold.
2
Q
Common stock
A
Gives shareholders voting rights and a share of profits.
3
Q
Preferred stock
A
Gives shareholders a share of profits but, in general, no voting rights.
4
Q
Stockbroker
A
Buys and sells securities for customers.
5
Q
Future
A
Is a contract to buy and sell a stock on a specific future date at a preset price.
6
Q
Option
A
Gives an investor the right to buy or sell stock at a future date at a preset price.
7
Q
Stock index
A
Measures and reports the change in prices of a set of stocks.
8
Q
Bull market
A
Occurs when stock market prices rise steadily over time.
9
Q
Bear market
A
Occurs when stock market prices decline steadily over time.
