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Stocks & Bonds
Basic information concerning stocks and bonds
6
Business
Undergraduate 1
09/29/2009

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Term

 

 

Bear Market

Definition
a market in which the prices of securities are falling, and a widespread pessimism causes the negative sentiment to be self-sustaining; as investors anticipate losses in a bear market, pessimism only grows; a downturn of 20% or more over at least a 2-month period is considered an entry into a Bear Market.
Term

 

 

Bull Market

Definition
a financial market of a group of securities in which prices are rising or are expected to rise; most often used to refer to the stock market, but can be applied to anything that is traded such as bonds, currencies, and/or commodities; a market characterized by optimism, investor confidence, and expectations that strong results will continue.
Term

 

 

Stock

Definition
a type of security that signifies ownership in a corporation and represents a claim on a part of the corporations assets and earnings.
Term

 

 

Common Stock

Definition
a security that represents ownership in a corporation that entitles the owner to vote at shareholders' meetings and to receive dividends; the stockholders elect a board of directors and vote on corporate policy; have rights to the company's assets only after the preferred stockholders, etc.
Term

 

 

Preferred Stock

Definition
a class of ownership in a corporation that generally does not maintain voting rights, but has a higher claim on assets and earnings than common stock; generally has a dividend that must be paid out before the dividends to common stockholders
Term

 

 

Debt

Definition
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