stock market

Question 1

stock

Answer 1

a share of a company. As you buy stock, you become pact owner of that company

Question 2

stock market

Answer 2

place where stocks are bought and sold

Question 3

index

Answer 3

collection of many stocks to identify trends in the market

Question 4

can you buy stock @ a private company?

Answer 4

no

Question 5

dividend

Answer 5

payments made to shareholders based on a % of there company’s profits (usually paid quarterly)

Question 6

volume

Answer 6

of shares traded per day

Question 7

stock split

Answer 7

when a company changes the # of shares it has along w/ the value of each share

Question 8

P/E ratio

Answer 8

• price / earnings
• if an investor is earning $5 per share per year & the price of stock is $40, then the P/E ratio is 8
• newer stock tends to have higher P/E ratios

Question 9

yield

Answer 9

the dividend divided by the stock price

Question 10

bull market

Answer 10

market is advancing, prices up

Question 11

bear market

Answer 11

market is declining, prices down

Question 12

portfolio

Answer 12

ones collection of stocks

Question 13

Long sell

Answer 13

buy now, hope the price increases, sell later, keep the difference

Question 14

short sell

Answer 14

borrow & sell now, hope the price drops, buy back later, keep the difference