Economics - Stock Market

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

NASDAQ

America's largest electronic stock market. Many technology stocks such as Apple, Microsoft and Yahoo are traded on this stock exchange

stock index

measures and reports the change in prices of a set of stocks

stock

A share of ownership in a corporation.

NYSE

A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities. It arranges stock and bond trading of top US and world companies

What is the difference between NYSE and NASDAQ?

NYSE = largest exchange, has physical location NASDAQ = largest electronic exchange

DOW Jones

The average price of 30 high performing stocks, used as a measure of general market trends

brokerage firm

a business that specializes in trading stocks

Ponzi scheme

a fraudulent investment plan in which the investments of later investors are used to pay earlier investors, giving the appearance that the investments of the initial participants dramatically increase in value over time

mutual fund

a group of a wide range of stocks

stock exchange

a market where securities are bought and sold

share

a portion of stock

preferred stock

a share of ownership in a corporation giving the holder a share of profits but, in general, no voting rights

common stock

a share of ownership in a corporation that gives the holder voting rights and a share of the profits

dividend

a share's portion of the company's profit

bear market

a situtation in which stock market prices decline steadily over time

bull market

a situtation in which stock market prices rise steadily over time

stockbroker

buys and sellers securities for customers

What is the difference between common and preferred stock?

common = voting rights preferred = no voting rights

White collar crime

financially motivated crime committed by business or government officials

What is the difference between income and growth stocks?

income = pays dividends when company makes a profit growth = all profits reinvested back into company

Why do many investors choose to invest in mutual funds instead of individual stocks?

mutual funds are much safer because they are groups of stocks that represent a large variety of industries

capital gain

profit made from the sale of securities

return

profit or loss made on an investment

securities fraud

the act of artificially inflating the price of stocks by brokers so that buyers can purchase a stock on the rise

stock split

the division of each single share of a company's stock into more than one share

risk

the possibility for loss on an investment

diversification

the practice of distributing investments among different financial assets

speculation

the practice of making high-risk investments with borrowed money in hopes of getting a big return

investment

the use of income today that allows for a future benefit

DOW stocks

thirty top performing (American Express, Apple, Disney, Chevron, Coca-Cola, Home Depot, McDonald's, Nike, Verizon, Visa, Wal-Mart, etc)

forgery

when a person passes a false or worthless instrument such as a check with the intent to defraud or injure another person

insider trading

when a person uses inside, confidential, or advance information to trade in shares of publicly held corporations

embezzlement

when a person who has been entrusted with money or property takes it for his or her own benefit

financial market

where buyers and sellers exchange financial assets


Ensembles d'études connexes

HIGH RISK PREGNANCIES AND COMPLICATIONS

View Set

Carmen Homework 9 - Normal Distribution

View Set

PSU Bio 110 Exam 4 Clicker Questions

View Set