Micro Stock Terms
NASDAQ (What is the NASDAQ and how many stocks are in it)
American stock exchange in New York City, second on the list of stock exchanges by market capitalization of shares traded; there are 3,000 stocks in it
Normal hours the US stock market is open for trading? Hours of operation? (excluding holidays)
Normal hours of operation for the US stock market for trading is from 9:30 AM to 4:00 PM Monday through Friday
Bear Market
a financial market where the prices are falling or are expected to fall, general decline in the stock market
Bull Market
a financial market where the prices are rising or are supposed to rise
DOW Jones Industrial Average (What is the DOW JIA and how many stocks are in it)
a stock market that measures stock performances of large companies; there are 30 stocks in it
Blue Chip Stock
a stock that comes from a well-known company
Net Worth
assets minus liabilities; measure of the worth of an entity; properties owned; value of a company
Middle Cap = (asset range to be considered Mid Cap)
company whose market capitalization is between $2 billion and $10 billion
Large Cap = (asset range to be considered Large Cap)
company whose market capitalization is over $10 billion
Small Cap = (asset range to be considered Small Cap)
company whose market capitalization is under $2 billion
stocks/shares
equal parts that a company's capital is divided into, the owners are entitled to a portion of the company's profits
Lot of share (how many is a normal or even lot)?
fixed quantity of units, depends on financial security; normal or even lot is 100 shares
Portfolio
grouping of financial assets like stocks, bonds, commodities, currencies, cash, and different kinds of funds; held by investors, financial professors, and money managers
Hedge
investment used to reduce the risk of price movements in an asset
Beta
measure of a stock's volatility in relation to overall market
Economic/Business Cycle
movement of gross domestic product around its long-term growth trend
S&P 500 (What is the S&P 500 and how many stocks are in it)
one of the best representations of stock markets in US, stock market that measures stock performances of large companies listed on stock exchanges; there are 505 stocks in it
IPO
process of offering a private corporation's shares to the public in the form of a new stock
Volatility
rate that the price of a security increases or decreases for a set of returns
401(k)
retirement plan that allows employees of companies to save and invest for their retirement on a tax deferred basis
529 Plan
tax-advantaged investment designed to encourage saving for the future higher education expenses
Dividend
the distribution of reward from a portion of the company's earnings and paid to its shareholders; can be issued as cash payments, shares of stock, or other property
Stock Split
the number of shares of a company increases, but market cap stays the same; as number of shares increase, price per share goes down
mutual funds
when many investors invest in stocks, bonds, money market instruments, and other things, and it is all pooled together