Term
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Definition
| Represent secured or financially valuable claims on the part of investors. |
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Term
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Definition
| Markets in which stocks and bonds are sold. |
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Definition
| Represents an ownership claim on the assets of a corporation. |
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Definition
| Represents a financial claim of money owned by a company to the bondholder. |
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Term
| Primary Securities Markets |
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Definition
| The market in which new stocks and bonds (but not mutual funds) are brought and sold by firms and governments. |
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Term
| Secondary Securities Markets |
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Definition
| Where existing bonds and stocks are traded. |
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Term
| Securities and Exchange Commission |
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Definition
The government agency that regulates U.S. securities markets.
New securities must be approved by the SEC. |
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Term
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Definition
| A payment to shareholders, on a per-share basis, out of the company's earnings. |
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Term
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Definition
| Declared face value at time of issue. |
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Term
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Definition
| Current share price in a market |
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Term
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Definition
| Proportional worth of owners' equity |
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Term
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Definition
| An organization formed to provide an institutional setting in which stocks can be bought or sold. The exchange enforces certain rules to govern its members' trading activties. |
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Definition
| The physical location in a exchange where stocks are traded. |
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Term
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Definition
| Earn commissions by executing buy-and-sell orders from nonexchange members. |
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Term
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Definition
| Offer lower fees to investors than do full service stock brokers. |
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Term
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Definition
| Covenient access to the internet, fast no nonsense transactions, opportunity for self traders to direct their investments. |
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Term
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Definition
| A full service brokerage can offer clients consulting advice in personal financial plannning, estate planning, and tax strategies, along with a wider range of investments. |
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Term
| Intitial Public Offerings |
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Definition
| The first sale of a companys stock to the general public. |
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Term
| The New York Stock Exchange |
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Definition
| For many people, "the stock market" means the New York Stock Exchange. |
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Term
| The American Stock Exchange (AMEX) |
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Definition
| The second largest floor based U.S. exchange is located in New York City. |
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Term
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Definition
| Seven regional stock exchanges were organized to serve investors in places other than New York. |
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Term
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Definition
| The value of exchange listed on foreign exchanges continues to grow. |
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Term
| Over the Counter Market (OTC) |
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Definition
| So called because its original traders kept supplies of shares on hand and , as opportunities arose, sold them over the office counter to interested buyers. |
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Term
| National Association of Securities Dealers Automated Quotation (Nasdaq) System |
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Definition
| The worlds oldest electronic stock market. Orders are gathered and executed on a computer network. |
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Term
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Definition
| Internet based games that provide an investment experience that is educational, challenging, and entertaining. |
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Term
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Definition
| A portfolio of stocks, bonds, and other securities purchased with pooled investments from individuals and organizations. |
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Term
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Definition
| Funds stressing safety and stability. |
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Term
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Definition
| Funds stressing conversative capital growth |
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Term
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Definition
| Funds stressing maximum long term capital growth |
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Term
| The Risk-Return Relationship |
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Definition
| Safer investments tend to offer lower returns; riskier investments tend to offer higher returns. |
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Term
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Definition
| Buying several different kinds of investments rather than just one so that the risk of loss is reduced by spreading the total investment across more stocks. |
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Term
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Definition
| The the relative amounts of funds invested in each of the investment alternatives. |
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Term
| The Dow Jones Industrial Average (DJIA) |
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Definition
The most widely cited U.S. market index.
Measures the performance of financial markets by focusing on 30 blue-chip companies as reflectors of economic health. |
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Term
| The S&P 500 Composite Index |
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Definition
| Consistsof 500 stocks,including 400 industrial firms, 40 utilities, 40 financial institutions, and 20 transportation companies. |
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Term
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Definition
| All Nasdaq-listed companies are included in the index, for a total of more than 3,300 firms both domestic and foreign. |
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Term
| The National Association Of Securities Dealers |
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Definition
| The largest private sector securities-regulation organization in the world. Every broker/dealer is required by law to be a member of the NASD and to pass qualification exams and meet standards for financial soundness. |
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