Financial Algebra Chapter 1
1-8 Stock Split
corporation changes number of outstanding shared while also adjusting the price per share so the market cap remains unchanged
1-2 High
highest price at which one share of the stock was traded on a given day
1-2 52-Week High
highest price at which one share was traded over the last year
Decimal to Percent
.07 = 7% 300.7 = 30,070%
Fraction to Decimal
7/100 = .07 3007/10 = 300.7
Irrational (symbol)
II
Real Number (symbol)
IR
Natural Number (symbol)
N
Rational (symbol)
Q
Integers (symbol)
Z
1-2 Sales in 100s
another word for 'volume'
1-6 Odd Lot
buy/sell stocks in groups of less than 100 shares
1-4 Simple Moving Average (SMA)
calculated by finding the average closing price over a given period of time
1-9 Dividend Income
corporations profits are split among shareholders (annually or quarterly)
1-6 Gross Capital Gain
difference between selling price & the purchase price
1-5 Trading Price
displayed on ticker preceded by @ symbol
Irrational Number
does not end or repeat
1-1 Shares
each owner who invests money in the corporation receives stock
1-2 Spreadsheet
electronic worksheet that can be used to keep track of stock information
1-3 Stock Bar Chart
graph form of data presentation
1-2 Stock Market
institution where stocks are bought & sold
1-7 At the Market
instructing your broker to get the best valued price
1-2 Cell
intersection of a column & a row
1-1 Profit
money left after all expenses are paid
1-9 Income Stock
money received from a dividend
1-8 Reverse Stock Split
number of outstanding shares is reduced & the market price per share is increased, & as the price increases the investors perceive that the stock is worth more
1-2 Volume
number of shares that was traded in a given time period
1-5 Trading Volume
number of shares traded in a single transaction (uses shorthand info) EX: 10K trades = 10,000 trades // 10M = 10,000,000 // 10B = 10,000,000,000
1-1 Personal Liability
owner is responsible for any losses
1-5 Uptick
price is higher than previous trade
1-5 Downtick
price is lower than previous trade
1-2 Last
price per share of the last trade that was made for a particular stock
1-6 Gross Capital Loss
sell a stock for less money than you paid for it
1-7 Stockbroker
shares of stock can only be purchased through a licensed stockbroker
1-2 Net Change
shows change between previous day's closing price & current day's closing price
1-2 Trades
sock market transactions
1-7 Limit Order
specifies the price you want to pay
1-7 Broker Fee
stockbrokers charge a fee for their services
1-9 Growth Stock
stocks that are bought low & sold high
Rational Number
terminates or repeats
1-2 After-Hour Trading
trades made after the market closes
Whole Number (symbol)
W
1-2 Close/Closing Price
last price at which a stock was traded during a regular day's trading session
1-2 Low
lowest price at which one share of the stock was traded on a given day
1-2 52-Week Low
lowest price at which one share was traded over the last year
1-1 Shareholders
owners of stock
1-8 Penny Stock
value is less than 5$ per share
1-3 Candlestick Chart
white & green = good day (close higher than open) black & red = bad day (close lower than open)
1-2 NASDAQ
National Association of Securities Dealers Automated Quotation System
1-2 NYSE
New York Stock Exchange
Decimal Rule
always move decimal 2 spaces --->
1-7 Net Proceeds
amount of money made after broker fees are subtracted
1-6 Round Lot
buy/sell stocks in groups of 100 shares
1-5 Dow Jones (DJIA)
follows daily trading action of 30 large public companies & is a way for investors to track performance of certain stocks
1-6 Portfolio
grouping of all stocks that a person currently owns
1-7 Commission
percentage of the value of the stock trade