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Stock Market Vocabulary
Words from the Moran STEP stock market unit
28
Economics
7th Grade
10/20/2022

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Cards

Term
52 week price range
Definition
the highest and lowest price for a stock over the last year
Term
analyst
Definition
person who studies companies and makes stock recommendations
Term
ask
Definition
the current price that sellers are asking to sell their stock
Term
bid
Definition
The current price buyers are offering to pay for a stock
Term
brand
Definition
the name that customers associate with a product, which is NOT a company or corporation
Term
corporation
Definition
A business organized so it can legally sell stock to raise money
Term
dividends
Definition
the portion of profits which are distributed to stockholders
Term
earnings
Definition
same as profits. income minus expenses
Term
inflation
Definition
a general increase in prices, which decreases the real value of money
Term
last or last trade
Definition
the current price of a stock, which is determined by the price paid for the most recent purchase
Term
limit order
Definition
an order for your stockbroker to buy or sell stock only at a specific price or better.
Term
market capitalization
Definition
The total value of a company
Term
market order
Definition
an order to buy or sell a stock at the best price your stockbroker can get, whatever the cost
Term
NASDAQ
Definition
The other large and important stock exchange in the United States
Term
nominal value
Definition
the face value of money, which never changes
Term
parent company
Definition
a company that owns other companies, known as subsidiaries
Term
partnership
Definition
business ownership where two or more individuals share management and profits. has no stock
Term
P/E price to earnings ratio
Definition
stock price divided by earnings. It shows how much investors are paying for each dollar of profit.
Term
profit
Definition
The surplus remaining after deducting company expenses from its income
Term
rate of return
Definition
the percent gain or loss on an investment over time
Term
real value
Definition
The value of money in terms of what it can buy, which is affected by inflation.
Term
shares outstanding
Definition
the total number of shares that exist for a company
Term
sole proprietorship
Definition
business ownership where a single person manages it and keeps the profits
Term
subsidiary company
Definition
a company which is owned by another company, known as its parent
Term
stock
Definition
shares or fractional parts of ownership of a corporation that can be bought and sold
Term
stock market or stock exchange
Definition
a place where buyers and sellers trade stock for money
Term
volume
Definition
the total number of shares traded in a day
Term
interest
Definition
the payment for borrowing money, usually stated as an annual percentage rate.
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