Chapter 12 Personal finance terms
False
A stockbroker does not typically charge a fee for giving investment advice or for making a sale or purchase transaction for an investor
FDIC
created to promote public confidence in the banking system
stock dividend
dividend paid int he form of new shares of stock
round lot
exactly 100 shares or multiples of 100 shares of stock
NCUA
federal agency that charters and supervises credit unions
odd lot
fewer than 100 shares of stock
primary market
financial market in which NEW issues of securities are sold
secondary market
financial market in which previously issued securities are bought and sold
true
forbes is an example of a business magazine that covers investment topics
wall street reform act
law that is designed to create and maintain a stable financial stystem
sarbanes oxley
law that sets stronger standards for public companies and accounting firms regarding financial reporting of operations
liar loans
loans without documentation
stock turning
making regular and systematic changes in stock ownership based on trends in the economy
auction market
market in which stock is sold to the highest bidder
over the counter market
network of dealers and brokers who buy and sell stocks and other securities that are not listed on a securities exchange
buy and hold
plan to purchase and keep stock for the long term
SEC
primary overseer of the us securities market- responsible for enforcing securities laws
FINRA
private organization that regulates firms selling securities in the US
limit order
request to buy and sell stock at a specific price
market order
request to buy and sell stock at the current market price
stop order
request to buy and sell stock when it reaches a certain price
selling short
selling stock that has been borrowed from a broker and replacing it at a later date
stock split
the issuance of more stock to current stockholders in some proportion to the stock they already own
insider trading
trading before problems become public
financial planner
an adviser who helps people make investment decisions to meet stated goals
discretionary order
an order to buy or sell stock that allows the broker to get the best possible price
buying on margin
borrowing money from your broker to buy stock
annual report
a company's report to shareholders about the financial position of the company
prospectus
a legal document that offers securities or mutual fund shared for sale and includes a detailed description of the securities
stockbroker
a licensed professional who buys and sells securities on behalf of others
securities exchange
a place where brokers buy and sell securities for their clients
discount broker
a qualified stockbroker who buys and sells securities at a reduced commission but offers no advice
full service broker
a qualified stockbroker who provides advice about what securities to buy and sell
oversight
a regulatory agency's supervision of activities to ensure that investors rights are protected