Social Studies Vocabulary
stock split
when a company divides its stocks into smaller, more economical shares. If a stock splits 2 for 1, it means that stockholders get 2 shares for every one they own. The price of the new stock would be adjusted downward.
profit
money that is made or gained as a result of an investment
share
one portion of ownership in a corporation
stocks
shares of ownership in a corporate or public body
shareholder
someone who owns shares of stock in a company
stockholder
someone who owns shares of stock in a company; same as a shareholder
securities
stocks and bonds
speculation
to engage in business dealings that involve some risk in hopes of making a profit
stock certificate
a certificate that shows ownership of one or more shares of stock in a corporation
Securities and Exchange Commission
a governmental agency that was established in 1934 to protect investors in securities (stocks and bonds). It registers all securities, licenses brokers, hears complaints, and penalizes people or companies who don't follow the rules
stock exchange
a place where stocks and bonds are bought and sold
stockbroker
a professional who is licensed to buy and sell stocks