Economics - Stock Market
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
