Term
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Definition
| approximate yield to maturity |
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Term
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Definition
| using borrowed funds, along with your own money to buy securities |
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Term
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Definition
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Term
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Definition
| 50% for common and preferred stock, if your stock falls below the initial margin it becomes a restricted account |
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Term
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Definition
| if your ownership percentage falls below a specified level, FRB 25%, you will recieve a margin call from your broker requiring you to deposit additional money into your account |
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Term
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Definition
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Term
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Definition
| profit or loss divided by investment |
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Term
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Definition
| leverage (with profit), smaller investment, easier to diversify |
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Term
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Definition
| leverage (with loss), interest cost |
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Term
| margin percentage formula |
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Definition
| stock market value - loan / stock market value |
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Term
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Definition
| using the increased equity in your margin account to purchase additional securities with no additional money out of pocket |
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Term
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Definition
| you believe a stock will fall in price due to higher levels of competition |
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Term
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Definition
| stocks and bonds, traded in the capital markets |
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Term
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Definition
| t-bills and commercial paper, traded in the money market |
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Term
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Definition
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Term
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Definition
| stock is sold to the general public |
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Term
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Definition
| reselling of existing securities |
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Term
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Definition
| physical building where the actual trading takes place |
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Term
| types of organized exchange |
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Definition
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Term
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Definition
| over the counter telecommunications network that connects the brokers (referred to as dealers) |
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Term
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Definition
| national association of securities dealers automated quotation system, founded in 1971 |
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Term
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Definition
| electronic communications network |
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Term
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Definition
| fundamental analysis, technical analysis |
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Term
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Definition
| a stocks value is based on certain characteristics (future revenue and earnings) of the firm and how sensitive the firm is to economic conditions |
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Term
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Definition
| a stocks value is based on historical price patterns or trends (charting behavior) |
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Term
| what company has paid dividends the longest? |
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Definition
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Term
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Definition
| declaration date, record date, ex-dividend date, payment date |
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Term
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Definition
| dividend payment is approved by the board |
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Term
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Definition
| date by which investor must own the stock to reveive the dividend |
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Term
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Definition
| 2 days prior to record date buyer will not recieve |
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Term
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Definition
| doubles your shares cuts the stock price in half |
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Term
| reverse stock split (1 for 2) |
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Definition
| cuts your shares in half, doubles the stock price |
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Term
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Definition
| required full disclosure of information by firms on new issues |
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Term
| Securities Exchange Act of 1934 |
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Definition
| put the SEC (Securities and Exchange Commission) in charge of securities regulation |
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Term
| Investment Company Act of 1940 |
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Definition
| deals with protection for investors dealing with mutual funds |
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Term
| Securities Investor Protection Act of 1970 |
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Definition
| protects investors from brokerage firm failure (not stock Performance) |
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Term
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Definition
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Term
| The value of any asset (investment) is determined by |
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Definition
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Term
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Definition
| shows how long it would take to double your money |
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