Investing - 12.2 - Stocks - Buying And Selling - WHS Albert
Securities Exchanges
Places where brokers, representing buyers and sellers, meet to trade securities
Short Selling
Selling stock borrowed from a broker that must be replaced at a later time.
Day Trading
The buying and selling of securities on the same day, on the basis of small, short-term price fluctuations.
Initial Public Offering
The first time a stock is offered to a select group of the publin in the Primary Market
Mutual Fund
The pooling of money by many investors to buy a selection of securities
Leverage
The use of debt financing of an investment to maximize the return
Pension
A sum of money paid regularly by an employer to an employee after retirement.
Discount Broker
A broker that only takes and executes orders to buy and sell; may give general advice
Full-service Broker
A broker that provides a large variety of services to its clients, including research and customized advice
Margin Account
A brokerage account in which the customer has been extended borrowing privileges by the brokerage firm
Annuity
A contract sold by an insurance company that provides the investor a series of regular payments, usually after retirement.
Trading Posts
A specific location on the floor of a stock exchange where a stock is traded
Margin Call
A demand by a broker that a customer deposit enough to bring his margin up to the minimum requirement
Security
A financial asset that can be bought and sold in a financial market.
Securities Broker
A financial intermediary that acts as an agent for investors who want to buy or sell securities
Secondary Market
A financial market in which investors buy and sell existing securities among each other
Primary Market
A financial market in which new issues of a security are sold by a corporation to initial buyers.
BATS
A global network of stock exchanges in the US and Europe that handles trades through a computerized network
Buy And Hold
A long-term plan of holding stock for several years to receive dividends and make capital gains
Dollar Cost Averaging
A long-term plan of purchasing an equal dollar amount of the same stock at equal intervals
NYSE
A major stock exchange that handles trades through a combination of auctions and computerized networks
NASDAQ
A major stock exchange that handles trades through a computerized network
Floor Broker
A member of a brokerage house who completes a customer's buy or sell order on the floor of a stock exchange
Dividend Reinvestment Plan
A plan that allows current stockholders the option to reinvest in the corporation by using their dividends to purchase more stock
Bear Market
A prolonged period of falling stock prices and a general feeling of investor pessimism.
Bull Market
A prolonged period of rising stock prices and a general feeling of investor optimism
Stock Split
An increase in the number of outstanding shares with a proportional decrease in the market price
Retail Investor
An investor who is an individual, not a company.
Limit Order
An order to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level
Market Order
An order to buy or sell a security at the best price available at the time it is placed
Indirect Investing
Buying investments that invest on the shareholder's behalf
Direct Investing
Buying stock directly from corporations rather than through an exchange
Circuit Breakers
Drops in the S&P 500 at which trading stops for a period of time on US stock exchanges
Volatility
Indicates how much and how quickly the value of an investment changes.
ICE
Intercontinental Exchange; a global network of securities exchanges including the NYSE
Institutional Investor
Large organizations - such as pension funds, mutual funds, and insurance companies - that invest their own funds or the funds of others
Specialist
Member of a stock exchange who maintains a fair and orderly market in one or more securities.
Market Timing
Moving into and out of different investments because of beliefs about their expected performance
Agent
One who has authority to act for another