Financial Algebra Chapter 1

1-8 Stock Split

corporation changes number of outstanding shared while also adjusting the price per share so the market cap remains unchanged

1-2 High

highest price at which one share of the stock was traded on a given day

1-2 52-Week High

highest price at which one share was traded over the last year

Decimal to Percent

.07 = 7% 300.7 = 30,070%

Fraction to Decimal

7/100 = .07 3007/10 = 300.7

Irrational (symbol)

II

Real Number (symbol)

IR

Natural Number (symbol)

N

Rational (symbol)

Q

Integers (symbol)

Z

1-2 Sales in 100s

another word for 'volume'

1-6 Odd Lot

buy/sell stocks in groups of less than 100 shares

1-4 Simple Moving Average (SMA)

calculated by finding the average closing price over a given period of time

1-9 Dividend Income

corporations profits are split among shareholders (annually or quarterly)

1-6 Gross Capital Gain

difference between selling price & the purchase price

1-5 Trading Price

displayed on ticker preceded by @ symbol

Irrational Number

does not end or repeat

1-1 Shares

each owner who invests money in the corporation receives stock

1-2 Spreadsheet

electronic worksheet that can be used to keep track of stock information

1-3 Stock Bar Chart

graph form of data presentation

1-2 Stock Market

institution where stocks are bought & sold

1-7 At the Market

instructing your broker to get the best valued price

1-2 Cell

intersection of a column & a row

1-1 Profit

money left after all expenses are paid

1-9 Income Stock

money received from a dividend

1-8 Reverse Stock Split

number of outstanding shares is reduced & the market price per share is increased, & as the price increases the investors perceive that the stock is worth more

1-2 Volume

number of shares that was traded in a given time period

1-5 Trading Volume

number of shares traded in a single transaction (uses shorthand info) EX: 10K trades = 10,000 trades // 10M = 10,000,000 // 10B = 10,000,000,000

1-1 Personal Liability

owner is responsible for any losses

1-5 Uptick

price is higher than previous trade

1-5 Downtick

price is lower than previous trade

1-2 Last

price per share of the last trade that was made for a particular stock

1-6 Gross Capital Loss

sell a stock for less money than you paid for it

1-7 Stockbroker

shares of stock can only be purchased through a licensed stockbroker

1-2 Net Change

shows change between previous day's closing price & current day's closing price

1-2 Trades

sock market transactions

1-7 Limit Order

specifies the price you want to pay

1-7 Broker Fee

stockbrokers charge a fee for their services

1-9 Growth Stock

stocks that are bought low & sold high

Rational Number

terminates or repeats

1-2 After-Hour Trading

trades made after the market closes

Whole Number (symbol)

W

1-2 Close/Closing Price

last price at which a stock was traded during a regular day's trading session

1-2 Low

lowest price at which one share of the stock was traded on a given day

1-2 52-Week Low

lowest price at which one share was traded over the last year

1-1 Shareholders

owners of stock

1-8 Penny Stock

value is less than 5$ per share

1-3 Candlestick Chart

white & green = good day (close higher than open) black & red = bad day (close lower than open)

1-2 NASDAQ

National Association of Securities Dealers Automated Quotation System

1-2 NYSE

New York Stock Exchange

Decimal Rule

always move decimal 2 spaces --->

1-7 Net Proceeds

amount of money made after broker fees are subtracted

1-6 Round Lot

buy/sell stocks in groups of 100 shares

1-5 Dow Jones (DJIA)

follows daily trading action of 30 large public companies & is a way for investors to track performance of certain stocks

1-6 Portfolio

grouping of all stocks that a person currently owns

1-7 Commission

percentage of the value of the stock trade