Term
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Definition
| people can by/sell shares of a company |
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Term
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Definition
- equity
- liquid asset
- requires fee to buy/sell
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Term
| why do companies offer stock? |
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Definition
- to raise money for expansion and ongoing business activites
- No obligation to refund
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Term
| why investors purchase (common) stock |
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Definition
- income from dividends
- dollar apprecation of stock value
- increased value from stock splits
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Term
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Definition
| when shares owned by stockholders are divided into larger ones |
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Term
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Definition
-middle investment represents ownership position
-recieve dividends before common stock holders
-those looking for more predictable income go here |
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Term
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Definition
- blue chip stock large cap
- cyclical mid cap
- defensive small cap
- growth micro cap
- income penny stock
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Term
| earnings-per-share ratio (EPR) |
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Definition
| corporation's after-tax income divided by number of outstanding shares (in common stock) |
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Term
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Definition
| financial firm that assist corps in raising funds |
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Term
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Definition
market in which an investor purchases financial securites through investment bank
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Term
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Definition
| exists for financial securities that are currently traded among investors |
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Term
| initial pubic offering (IPO) |
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Definition
| first time shares go public & can sell |
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Term
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Definition
marketplace where brokers, who represent investors, meet to buy & sell securities
New York Stock Exchange, Regional Exchanges |
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Term
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Definition
| licensed to buy & sells securities for ther clients |
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Term
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Definition
| often done online, investor is fully responsible for their choices |
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Term
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Definition
-buy & hold
-dollar cost averaging
-direct investment and dividend re-investment plans (DRIPS) |
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Term
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Definition
| price earnings///earnings per share of stock over a year |
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Term
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Definition
-day trading
-buying on margin
-selling short
-trading in options |
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