Stocks and shares
stock market
A general term used to describe all transactions involving the buying and selling of stock shares issued by a company
stake
A part of a business that you own, or an amount of money that you have invested in a business.
bear market
A period when most of the stocks on a market fall
bull market
A period when most of the stocks on a market rise
commodity
A product that you can buy or sell
bonds
An official document from a government or a company to show that you have given them the money that they will pay back with a certain amount of extra money.
equities
Shares in companies, especially ordinary shares, or the activity of trading these shares.
float
To start selling a company's shares to the public
due diligence
a detailed examination of a company and its financial situation
prospectus
a document inviting the public to buy shares, stating the terms of sale and giving information about the company
broker
a person who is licsensed to buy and sell stock.
growth stock
a stock from a company which has a consistent record of relatively rapid growth and earnings in all economic conditions
stock ticker symbol
a stocks abbreviated trading symbol name
take a short position
agreeing to sell stocks in the future at their current price, before they actually own them
IPO
an offer of a company's shares to investors
bid
buying price
stocks and shares
certificates representing part ownership of a company
go public
change from a private company to PLC
spread
difference between bid and offer prices
dividends
distributions of earnings paid to stockholders
high selling price
highest selling price of one share of stock from the previous day
make a capital gain
increase the amount of moneystockholders have - by selling their stocks at a higher price than theypaid for them
low selling price
lowest selling price of one share of stock from the previous day
OTC (over-the-counter)
markets which have fewer regulations
rights issue
new shares offered to existing shareholders
volume 100's
number of transactions
dow jones
oldest indicator of the ups and downs of the stock market. lists the 30 leading blue chip stocks
price/earning ratio
relationship between the price of one share of stock and the annual earnings of the company
offer
selling price
common stock
shares or units of ownership in a public corporation. shareholders have voting rights
preferred stock
shares which pay fixed dividends and have precedence over common stock
shareholder
someone who owns shares in a company.
blue chip stock
stock from nationally recognized companies which dominate, stocks in large companies with a reputation for quality, reliability and profitability
income stock
stocks that have a history of paying consistently high dividends
value stock
stocks that investors believe are currently trading for less than they are worth - when compared with the companies' assets
defensive stocks
stocks that provide a regular dividend and stable earnings, but whose value is not expected to rise or fall very much
automatic trade systems
systems that match up buyers and sellers
dividend yield percentage
the dividend expressed as a percentage of the price of the share
52 week high
the highest price a stock was sold for in the past 52 weeks
52 week low
the lowest price a stock was sold for in the past 52 weeks
primary market
the market on which new shares are sold
secondary market
the market on which shares can be resold
stock certificate
the piece of paper a shareholder recieves representing their ownership of a stock
stock exchange
the place where stock and shares in companies are bought and sold
market price
the price at which a share is currently being traded
close
the price of the last share sold that day
nominal value
the price written on a share, which never changes
to underwrite
to guarantee to buy newly issued shares if no one else does
earnings per share
total earnings divided by the number of stocks issued
standard and poor's 500 index
tracks the activity for 500 stocks
