Social Studies Vocabulary

stock split

when a company divides its stocks into smaller, more economical shares. If a stock splits 2 for 1, it means that stockholders get 2 shares for every one they own. The price of the new stock would be adjusted downward.

profit

money that is made or gained as a result of an investment

share

one portion of ownership in a corporation

stocks

shares of ownership in a corporate or public body

shareholder

someone who owns shares of stock in a company

stockholder

someone who owns shares of stock in a company; same as a shareholder

securities

stocks and bonds

speculation

to engage in business dealings that involve some risk in hopes of making a profit

stock certificate

a certificate that shows ownership of one or more shares of stock in a corporation

Securities and Exchange Commission

a governmental agency that was established in 1934 to protect investors in securities (stocks and bonds). It registers all securities, licenses brokers, hears complaints, and penalizes people or companies who don't follow the rules

stock exchange

a place where stocks and bonds are bought and sold

stockbroker

a professional who is licensed to buy and sell stocks