STOCK MARKET Flashcards
What is insider information?
Key facts about plans or conditions of a corporation that have not been released to the public.
What is a mutual fund?
An investment company that sells shares of itself to the public and invests the money in securities. Gives individuals the opportunity to take less risk through a diversified investment.
What does NASDAQ stand for?
National Association of Securities Dealers Automated Quotations system is an electronic stock market. Provides brokers and dealers with price quotations on securities traded over the counter.
What is net change?
Change in the price of a security from the closing price on one day to the closing price on the next trading day.
What is the New York Stock Exchange?
World’s largest securities market. Only stocks in major corporations that have met the exchange’s requirements for financial solidity are listed on the exchange.
What is over the counter market?
Market conducted by phone and mainly with stocks not listed on an exchange. Dealers act as principals or as brokers for customers.
What is preferred stock?
Stock with a claim on the company’s earnings before payment can be made on common stock and is usually entitled to priority over common stock if the company liquidates.
What is a recession?
Mild decrease in economic activity with a decline in employment and trade.
What is volume in trading?
Number of shares traded in a security or an entire market for a given period, usually considered on a daily basis.
What is yield?
Return is the dividends divided by market price of the stock expressed as a percentage. A stock with a current market value of $50 with a dividend of $2.50 has a yield of 5%.
What is the American Stock Exchange?
Second largest stock exchange in the United States. First known as the Curb Exchange because it started on the streets of New York City.
What is a bear market?
Declining Market.
What is the Big Board?
Name of New York Stock Exchange.
What is a blue chip company?
Well-established company with good earnings and regular stock dividends.
What is a bond?
A corporation’s I.O.U note. The issuing company usually promises to pay bondholders a specific interest for a certain length of time and repays the loan on the expiration date. A bondholder is a creditor of the corporation and not a part owner, as is a shareholder.
What is a bull market?
An Advancing Market.
What is a certificate of deposit?
A money-market instrument with a set date of maturity and interest rate issued by banks.
What is a commission in trading?
The broker’s basic fee for purchasing or selling securities.
What is common stock?
Securities that represent an ownership interest in a corporation.
What is a depression in economic terms?
Low prices with high unemployment and business failures.
What is the Dow Jones Industrial Average?
An index, or statistical average, based on the market price of 30 leading companies listed on the New York Stock Exchange and NASDAQ.
What are Federal Reserve Banks?
Twelve banks created by the Federal Reserve Act. The banks serve as agents for the U.S. government and its monetary policy.
What is a growth stock?
Stock for a company with a record of rapid growth in earnings.
What is an Individual Retirement Account?
A self-funded retirement plan that can be made through mutual funds, insurance companies and banks or directly in stocks and bonds through stockbrokers. Employed individuals can contribute up to a maximum yearly sum while deferring tax on interest until retirement.
What is inflation?
A fall in the value of money and a rise in prices.
