Stock Market

ROTH Accounts

Allowed with 401k, 403B and 457 plans.

Shareholders

Also known as stockholders, are the people who own shares in a private or public limited company.

NASDAQ

American market for OTC securities, A nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically

Individual Retirement Accounts

a self-funded retirement plan that allows you to contribute a limited yearly sum toward your retirement

Stock Index

a statistic that tracks how the prices of a specific set of stocks have changed

Trade-off

an exchange that occurs as a compromise

Shares

Share of Stock

Ticker Symbol

Stock's abbreviated trade name.

Opportunity cost

The amount of other products that must be forgone or sacrificed to produce a unit of a product.

Commodities

economic goods or products before they are processed and/or given a brand name, such as a product of agriculture, export

Parent Companies

holding companies

Security Exchanges Commission

in order to regulate the stock market, given the power to tell companies what info should be included on the financial statement

Investment Diversification

investing in different things

stock

A share of ownership in a corporation.

Micro economics

the branch of economics that studies the economy of consumers or households or individual firms

Initial Public Offerings

The first time a company issues stock that may be bought by the general public

Blue Chip Stock

..., stock from nationally recognized companies which dominate the industry often having annual revenue of one billion or more, Stock from large companies, less risk

Bonds

A certificate issued by a government or private company which promises to pay back with interest the money borrowed from the buyer of the certificate: The city issued bonds to raise money for putting in new sewers.

Portfolio

A collection of investments

Privately Traded Companies

A company that is not publicly traded on a securities exchange.

Publicly Traded Companies

A company that issues shares of ownership, or stocks, that are traded on the open market, any company that sells stocks

401K

A defined contribution plan that automatically takes out money from an employee's paycheck before income taxes and invests it in mutual funds for purposes of retirement savings

Stock Market

A general term used to describe all transactions involving the buying and selling of stock shares issued by a company.

Stock Exchange

A market for buying and selling stock

Dividend

A payment from profits by a company's Board of Director's to shareholders. (Dividends are issued on a regular basis and can be either increased or decreased).

Mutual Funds

A pool of money used by a company to purchase a variety of stocks, bonds or money market instruments. Provides diversification and professional management for investors.

Investing

Committing money in the hope that it will make more money over time.

Macroeconomics

Concentrates on the operation of a nation's economy as a whole.

Scarcity

Condition that exists when wants or needs exceed resources available

NYSE

New York Stock Exchange

Short Selling

Selling stock borrowed from a broker that must be replaced at a later time.

Investment Portfolio

The collection of investments you personally hold, including stocks, bonds, money market accounts, and savings accounts.

Economic Choices

every society must decide WHAT to produce, HOW to produce, and FOR WHOM to produce

Traded

exchanged