Stock Market Quiz Terms 2 Flashcards
A business or association form to manufacture or supply products or services for profit
Company
Company legally separate from stockholders who owned it and the managers who run it.
Corporation
Person who organizes, operates and assumes risk for a business venture
Entrepreneur
A company owned and managed go to her more people who share its profits or losses. Partnership is not separate from its owners, who are liable for the companies debts
Partnership
Corporation that does not sell shares to the public. You cannot buy shares of a private company in the stock market
Private Corporation
The stock of a public company is owned and traded by individuals and institutional investors. In contrast, the stock is held by company founders, employees and sometimes venture capitalists
Public Corporation
A company owned and run by one individual who receives its profits or bears its losses. A proprietorship is not separate from its owner who is liable for the company’s debts.
Sole proprietorship
A person financial liability (responsibility) is limited to a fixed amount, most commonly the value of a person’s investment in a company or partnership. If a company with limited Liability is sued, then the claimants are suing the company, not its owners or investors.
Limited Liability
Shares of a company that do not guarantee a dividend and have more risks. Shareholders have the right to vote for board directors.
Common Stock
Those who buy this are non-voters owners of the company receive dividends before common stock owners.
Preferred stock
Secondary markets for buying and selling stocks
Stock Exchange
A company does this when the price of a stock becomes so high it discourages potential investors from buying it
Stock Split
A steady increase in the stock market over a period of time; investors expect an (increase) in profits and so buy stocks;
Bull Market
A steady drop in the stock market over a period of time; investors sell in expectation of lower profits
Bear Market
A person who links buyers and sellers to stock
Stock Broker
The first time a company makes its stock open to the public.
Initial Public Offering (IPO)
Part of the firm’s profits; paid 4 times a year; higher the profit, larger the dividend per share of stock.
Dividend
The difference between a higher selling price and a lower purchase price; results in financial gain
Capital Gains
The difference between a lower selling price and a higher selling price, resulting in financial loss
Capital Losses
A company’s closing price divided by its latest annual earnings per share
P/E Ratio
