Term
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Definition
Booklet issued after a company's fiscal
year is completed which describes how
the business performed in the last year.
The report shows income earnings,
assets, and liabilities. Required to be
issued to shareholders. |
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Term
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Definition
A financial report which shows the
company's assets and liabilities at
close of any given month. |
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Term
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Definition
The nickname given to the New York Stock
Exchange where shares of companies are
traded. |
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Term
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Definition
Promise to repay a loan with interest at
a specified time. Can be issued by
corporations and government agencies at
the local, state, and federal levels. |
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Term
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Definition
An organization of traders who buy and sell
contracts for a future delivery date.
Contracts include agricultural and natural
resources. |
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Term
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Definition
Represents ownership in a publicly held
company which entitles owners to dividends
(if declared by the company's Board of
Directors), voting rights on matters affecting the company, and in the election of
Board members. |
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Term
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Definition
The decline in dollar value of equipment and
buildings which have undergone
obsolescence due to normal use over time. |
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Term
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Definition
A payment from profits by a company's
Board of Directors to shareholders.
Dividends are issued on a regular basis
and can be either increased or
decreased. |
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Term
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Definition
The number of shares being traded is
less than 100. |
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Term
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Definition
he number of shares being traded is at
least 100 shares. |
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Term
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Definition
Shares of stock which entitle owner to a
fixed dividend amount. Dividend must be
paid by the company before common stock
owners get paid. Shareholders usually do
not have voting rights. |
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Term
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Definition
Ratio between the market price of a stock
and the profits per share over the last
year. To corapute P-E ratio, divide the
earnings into the market price of stock. |
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Term
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Definition
An economic slowdown of the economy
which results in rising unemployment,
increased business failures, declining
economic growth and higher personal
bankruptcies. |
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Term
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Definition
Profits kept in the business for general
company improvements, new product
development and equipment replacements, |
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Term
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Definition
Percent return on profits before the
payment of taxes. |
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Term
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Definition
The financial return on stock on a per
share basis expressed as a percent of
the stock market value. To compute the
yield, divide the annual dividend per
share by current market price of the
stock. |
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Term
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Definition
The taking over the control of one
company by another. |
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Term
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Definition
The second largest US stock exchange
located in New York. The Exchange
trades stocks that generally represent
smaller regional businesses. |
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Term
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Definition
A way of measuring the performance of stock
prices in a trading session. Most well known
"average" is the Dow Jones Industrial
Average (DJIA). Prices and volume of 30
stocks are totaled and computed by a set
formula which compensates for past stock
spits. Standard and Poor's 500 is another
well known average. |
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Term
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Definition
Stock market that experiences a general
decline in prices of stock. Not all
stocks experience a decline in value,
but most do. |
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Term
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Definition
Stock market experiences a general rise
in prices and stock trading volume for
shares over a period of time. |
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Term
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Definition
Often called a quote. The bid is the highest
price any investor is willing to pay for a
stock at a given time. The ask is the lowest
price any investor will sell the stock at a
given time. |
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Term
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Definition
A large buy of sell order for stock. The
minimum trade is 10,000 shares. |
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Term
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Definition
A nationally known company that has a
consistent pattern of profit growth and
dividend payments over the last several
years. |
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Term
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Definition
Profit or loss from the sale of an asset.
Capital gain can result when stock is sold
for a higher price than was paid for it.
(Capital loss is the opposite of a gain) |
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Term
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Definition
All shares issued by a company which
includes both preferred and common
stock. |
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Term
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Definition
A document which proves ownership of a
stock or bond. This identifies the owner
and number of shares owned on the face of
the document. |
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Term
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Definition
The area at the stock exchange where
stocks are traded. |
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Term
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Definition
Stock of a corporation that has a
history of faster than average gains in
earnings over the last five years. |
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Term
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Definition
A type of security which the holder has
the right to purchase common or
preferred stock at a specified price a
time period. It is a method a
corporation can enhance the
marketability of a weak stock. |
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Term
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Definition
A division of shares of a company into a
larger number of shares. A 2 for I split
allows a shareholder to double the number of
shares but worth one half of their previous
value. |
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Term
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Definition
A rapid increase in the prices of stock after a period of
decline in the stock market. A rally can apply to an
individual stock or to the entire market. |
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Term
Securities and Exchange
commission |
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Definition
US government agency which oversees the
operations of the stock markets which
trade stocks, bonds, and other types of
securities. |
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Term
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Definition
A brokerage firm which has at least one
broker who is a member of the exchange.
Any brokerage firm which is not a member
of the exchange is required to hire the
services of another firm to conduct the
trade. |
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Term
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Definition
Is equivalent to one dollar. If a stock
rises 3 points, then it has increased by
3 dollars per share. |
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Term
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Definition
The legal right to buy or sell a specific
number of shares at a set price within a
limited time period. |
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Term
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Definition
Stocks of smaller regional companies
are traded on brokerage firms computers
because of low volume trades which are
not accepted by the large exchanges. |
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Term
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Definition
Some preferred stocks and bonds as
identified by the issuing company can be
exchanged for common shares in that
company within a set time period. |
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Term
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Definition
| Shares of companies which trade under $1 |
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Term
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Definition
| Stocks which sell for under $10. |
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Term
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Definition
Known also as an underwriter who guarantees
the sale of newly issued stock of a company. |
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Term
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Definition
The lowest interest rate charged by a bank
to its best corporate customers. Other
interest rates are affected by the
increasing or decreasing of the prime rate |
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Term
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Definition
Holdings of stocks, bonds and other
investments by individual investors,
banks, insurance companies and brokerages |
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Term
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Definition
Document issued to possible buyers of a
stocks and bonds outlining the financial
condition of the company issuing those
securities. Required by the SEC. |
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Term
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Definition
The last price for a stock traded at the
end of the trading day or session on an
exchange. |
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Term
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Definition
Money borrowed by investor for which an
interest charge is made. Purchased stock
is held by the brokerage firm as
collateral. Margin is limited to 50% of
the portfolio value. |
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Term
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Definition
A stock or bond sold by a corporation
for the first time. Proceeds (money from sale) may be
used to retire debts, build new plants or buy new
equipment or for additional working capital. |
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Term
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Definition
A member of an exchange whose purpose is
to maintain an orderly trading market by
buying or selling securities (stocks and
bonds) in their own account and to
handle limit orders from floor brokers. |
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