Stock Market Flashcards
Sole Proprietorship
One person runs a company - that person makes all the decisions
Partnership
Several owners have a say in what decisions are made
Corporation
A business that has been split into many different shares of ownership that are bought and sold on a public market
Corporation Disadvantage
Owners may often disagree on decisions
SEC
Helps protect investors, maintain fair, orderly, and efficient markets
IPO
The first time a stock is auctioned off in public
Growth Stocks
A stable company that is well known and successful will grow in price slowly.
Index
The average of a group of stocks which indicates how well the market as a whole is doing
Value Stock
A company that isn’t well known and had limited success.
Mutual Funds
Kind of investment that uses money from many investors to invest in stocks or bonds
Bonds
Are mini loans from individual people to a company or government (safe investments)
Corporate Bond
Money loaned to corporations
U.S. Bonds
Bonds sold by the U.S. treasury in order to pay off the national debt
Municipal Bonds
It is generally used to finance public projects such as roads, schools, airports and seaports, and infrastructure-related repairs
