Stocks

Types of Diversification

1. Sector Diversification 2. Stock Diversification

Dividend ?

Companies that are consistently profitable often pay out part of their earnings to shareholders

The Passive strategy

Invest in ETFs and market indices

What is a mutual Fund?

M.F. are a way you can buy into a wide range of stocks, bonds, money, markets, or other securities all at once.

Where does stock come from?

New issues and Stock Dividends (or Splits)

What is a stock quote?

Represents the last price at which a seller and a buyer of a stock agreed on a price to make the trade.

what is a stock?

Stock is defined as a share of ownership of a company; if you own a company's stock, you actually own a percentage of company itself.

What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average is a stock market index made up pf 30 of the largest publicly owned companies based in the United States

What is tthe New York Stock Exchange

The largest stock exchange in the world

Types of stocks

There is more than one kind of stock or ownership that companies sell. Common Stock, some companies have issued "Preferred Stock".

Why do we use " Tickers"?

You must have the stock's ticker symbol in order to place your first trade

What is an ETF?

are a fairly new way you can buy a large group of stocks

Preferred Stock

have benefit of "preference" for dividend payments. P.S. Holders are entitled to be paid first if a company goes bankrupt and all assets are sold off.

What is a Ticker Symbol

is a unique one to five letter code used by the stock exchanges to identify a company

Diversify

make sure to pick a variety of socks in different industries.

What are common stocks entitled to?

receive distributions of the companies provides, called " divided payments."

Net Change

refers to differences in closing price of a stock, bond, mutual fund, ETF

What is capital Preservation?

the idea that you want to preserve the money you have invested

Common Stock

the kind most investors buy. Common stock generally gives one vote at shareholder meetings for every share owned.

IPO

when a private company decides to "Go public" and issue shares of stock for anyone to buy