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Economy > Stock Market Terms Reversed > Flashcards

Stock Market Terms Reversed Flashcards

1
Q

Also called “return.” ____ on a stock is calculated by dividing the number of dividends paid in the previous 12 months by the current market price of the stock.

A

Yield

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2
Q

The paper ribbon on which a telegraphic printer prints stock prices.

A

Ticker Tape

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3
Q

Securities issued by public agencies such as cities or states, on which the interest is not taxed by the federal government.

A

Tax-Exempt Bonds

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4
Q

A type of security that ranks ahead of common stock in claims on earnings but does not give voting rights to its holder.

A

Stock (preferred)

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5
Q

Securities that represent part ownership, or equity, in a corporation. Each share of stock is a claim on a proportionate amount of the corporation’s assets and profits, some of which may be paid out as dividends.

A

Stock (common)

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6
Q

A term used to describe a highly risky investment with a potentially high return.

A

Speculative

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7
Q

One of the parts into which the ownership of a corporation or a mutual fund in divided.

A

Share

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8
Q

A contract to sell stocks that are not in the seller’s possession for delivery at some future date. The seller hopes that the market will decline by the stated delivery date, at which time the seller will actually buy the stocks needed at the low price but sell them for higher contracted sales price.

A

Selling Short

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9
Q

The federal agency that regulates stock transactions.

A

Securities and Exchange Commission (SEC)

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9
Q

The chance or probability an investment will decrease in value. _____ can be reduced by diversification.

A

Risk

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10
Q

The recovery of prices after a decline.

A

Rally

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11
Q

A legal document providing pertinent information about stocks or mutual fund shares for sale to the public.

A

Prospectus

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12
Q

The amount of your own money you put into an investment.

A

Principle

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13
Q

The stocks and other investments owned by an individual or institution.

A

Portfolio

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14
Q

Profit that is created when the price rises but before stock has actually been sold. If a stock climbs from 70 to 74, the four-point gain is a “_____ ______” until the shares are actually sold at 74.

A

Paper Profit

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15
Q

The opposite of overbought - the opinion that too active selling has forced a stock or the whole market too low.

A

Oversold

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16
Q

The opinion that too active buying has boosted a stock or the market too high.

A

Overbought

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17
Q

The right to buy or sell something within a specified time at a specified price.

A

Option

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18
Q

A number that shares of stock fewer than the usual trading unit of 100 shares.

A

Odd Lot

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19
Q

The world’s largest and leading marketplace for securities. It lists the stock of the oldest, largest, and best-known companies. Only stock in major corporations that have met NYSE’s requirements for financial stability is listed on the NYSE.

A

New York Stock Exchange (NYSE)

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20
Q

The “per share value” of a mutual fund, defined as the market value of a mutual fund’s total assets, less its liabilities, divided by the number of shares outstanding.

A

Net Asset Value (NAV)

21
Q

An online marketplace for securities that lists smaller, younger companies.

A

NASDAQ

22
Q

An open-ended investment that pools money from individuals and uses it to buy securities such as stocks, bonds, and money market investments.

A

Mutual Fund

23
Q

Short-term (usually 90 days or less), interest-bearing IOUs issued by governments, corporations, banks, or other financial institutions.

A

Money Market Instruments

24
Q

A sales commission paid either when shares of a mutual fund are purchased (“front-end ___”) or when shares are sold (“back-end __”). Mutual funds with no sales commissions are called “no-__” funds.

A

Load (as opposed to “no-load”)

25
Q

A mutual fund that seeks to match the performance of a predetermined benchmark, or index.

A

Index Fund

26
Q

A statistical benchmark, designed to reflect changes in financial markets or the economy. Well-known indexes include the Dow Jones Industrial Average and Standards and Poor’s 500 Composite Stock Price Index.

A

Index

27
Q

A corporation created to hold assets of another company.

A

Holding Company

28
Q

Ownership of preferred or common stock in a company.

A

Equity

29
Q

An indicator of stock prices based on 30 major industrial companies.

A

Dow Jones Industrial Average

30
Q

Reinvesting investment gains and income on earnings as well as the investment principle.

A

Compounding

31
Q

A fee paid to a broker for buying or selling securities.

A

Commission

32
Q

Grains, natural resources, and other bulk items that are traded by investors at various special exchanges.

A

Commodities

33
Q

A payment to the stockholders of a corporation from the company’s earnings.

A

Dividend

34
Q

Ownership of a sufficient number of shares to influence the price of a particular stock - to “______” the market.

A

Corner

35
Q

The differences between the sales price of a capital asset, such as stocks, bonds, or mutual funds, and the costs or basis of the assets. If the sales price is higher than the cost, there is a _____ _____. If the sales price is lower than the costs, there is a ____ _____.

A

Capital Gain/Loss

36
Q

Any of twelve regional banks that comprise the Federal Reserve System, which regulates U.S. monetary policy.

A

Federal Reserve Bank

37
Q

Wealth in any form that is used or capable of being used to produce more wealth.

A

Capital

38
Q

Reducing investment risk by spreading your money among different classes of investments and among the securities of many issuers.

A

Diversification

39
Q

A corporation, often formed by the merger of many firms, that has many different divisions producing entirely different products.

A

Conglomerate

40
Q

A market that is going up. This expression comes from the way that a bull attacks, by lowering its head and then bringing its horns up.

A

Bull Market

41
Q

On Wall Street, someone who believes stock prices will go up.

A

Bull

42
Q

A note or “IOU” of a corporation or the government. The issuer makes regular interest payments and promises to pay back the face of value of the ____ at a specified time, called the maturity date.

A

Bond

43
Q

An intermediary between a buyer and seller who charges a commission.

A

Broker

44
Q

Expression used to describe the stock of a company that is known for paying dividends in both good and bad years.

A

Blue Chip

45
Q

A large quantity of stock, usually more than 10,000 shares

A

Block

46
Q

Popular name for the New York Stock Exchange.

A

Big Board

47
Q

A market that is going down. This expression comes from the way that a ____ attacks, by swinging its paw downward.

A

Bear Market

48
Q

On Wall Street, someone who believes that stock prices will go down.

A

Bear

49
Q

A marketplace for securities. List many smaller, younger companies.

A

American Stock Exchange (AMEX)

Economy (2 decks)

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