Stock Vocab

Question 1

Corporation

Answer 1

A public ally owned company

Question 2

Stock

Answer 2

A small price of a company

Question 3

CD

Answer 3

A certificate of deposit
•Buy it at a bank
•Safer than stock

Question 4

IPO

Answer 4

The 1st day stock is being sold

•Initial public offering

Question 5

Dividends

Answer 5

Money that stocks pay their owners

Question 6

Stock split

Answer 6

When a company’s single stock price is at a high cost so they split the cost
• $800 per one stock
•split $400 per stock
• all owners of stock already have the split too, they just get 2 stocks

Question 7

Dow jones average

Answer 7

Price weighted average of 30 significant stocks

Question 8

New York stock exchange

Answer 8

The place/market where you go to buy stock

Question 9

NASDAQ

Answer 9

2nd largest stock exchange

•mostly technology stock

Question 10

Portfolio

Answer 10

All of your stock investments

Question 11

Margin

Answer 11

Borrowing money from banks to buy stock

• not a good idea because you have to pay it back

Question 12

Security and exchange commission

Answer 12

Job into prevent monopolies and fraud

• No cheating

Question 13

Bonds

Answer 13

A loan from the government
• You get a certain amount (%) back
•Similar to a loan from the government

Question 14

S @ P 500

Answer 14

A “snapshot” of how 500 stocks are doing

Question 15

Mutual fund

Answer 15

Multiple stocks in one fund

• A bunch of company stocks in one share

Question 16

IRA

Answer 16

Individual Retirement Account

• Put whatever stocks or money in it, but you can’t take it back out until you are 59 1/2