The Stock Market Game Vocabulary

Entrepreneur

A person who organizes, operates, and assumes the risk for a business venture.

Annual Report

By law, each publicly held corporation must provide its shareholders with an annual report showing its income and balance sheet. In most cases, it contains not only financial details but also a message from the chairman, a description of the company's operations, and an overview of its achievements.

Proxy

If you own common stock in a U.S. corporation, you have the right to vote on company policies and to elect the company's board of directors. You may vote in person at the annual meeting or authorize the board to vote on your behalf using an absentee ballot, or proxy, which you can submit by mail or, increasingly often, by telephone or over the Internet

Preferred Stock

Often pay a fixed dividend on a regular schedule. The prices tend to be less volatile than common stock. Preferred stocks tend to move with changing interest rates. Preferred stocks holders cannot vote on corporate matters.

Dividend

Part of a company's profits (earnings) that is paid as money or shares to stockholders. In The Stock Market Game, any dividends received are listed in Transaction History and are included in the portfolio's total equity.

Dividend

Part of a company's profits (earnings) that is pays as money or shares to stockholders. In The Stock Market Game, any dividends received are listed in Transaction History and are included in the portfolio's total equity.

Common Stock

Shares represent ownership in a corporation and give the right to vote for the company's board of directors and benefit from its financial success

Investor

Someone who purchases stocks, bonds, mutual funds and other financial instruments in hopes the investments will increase in value over time.

Risk

The chance of losing all or part of the value of an investment.

Long position

The condition of owning stock. The value of a long position is a stock's current share price multiplied by the number of shares owned.

Volume

The number of shares traded in a company's stock. Unusual market activity, either higher or lower than average, is typically the result of some external event.

Public Corporation

The stock of a public company is owned and traded by individual and institutional investors. In contrast, the stock is held by company founders, employees, and sometimes venture capitalists.

Earnings

Whatever profits or net income remains after subtracting the company's expenses from its revenue.

Private Corporation

A corporation that doesn't sell shares to the public. You can't buy shares of a private company in the stock market.

P/E Ratio

A company's closing price divided by its latest annual earnings per share. The Price/ Earnings is the relationship between a company's earnings and its share price. It is calculated by dividing the current price per share by the earnings per share.

Company

A business or association usually formed to manufacture or supply products or services for profit.

Portfolio

A collection of investments owned by one individual or organization.

Corporation

A company legally separate from stockholders who own it and the managers who run it.

Partnership

A company owned and managed by two or more people who share its profits or losses. A partnership is not separate from its owners, who are liable for the company's debts.

Sole-proprietorship

A company owned and run by one individual who receives its profits or bears its losses. A proprietorship is not separate from its owner, who is liable for the company debts

Private Company

A company owned by a person, family, or small group of investors that does not sell stock to the public.

Public Company

A company owned by investors who buy shares of stock usually through a stock exchange.

Parent Company

A company that owns enough voting stock in another firm to control management and operations.

Share

A share is a unit of ownership in a corporation or mutual fund.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profit (or loss). Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations.

Stockholder

Also known as a shareholder is the owner of the stock. Stock: A security that signifies ownership in a corporation and represents a claim on a part of the corporation's profit (or loss). Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations.

Initial Public Offering (IPO)

An IPO is the first issue of stock for public trading made by a company.

Risk Tolerance

An individual investor's ability to accept loss of some or all of the money they have invested. A person's risk tolerance is based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.

Shareholder

An individual or company (including a corporation) that legally owns one or more shares of stock in a stock company. The shareholders are the owners of a corporation.

Stock Exchange

Place/electronic platform where shares of are bought and sold.

Liquidation

Process by which assets of a business are converted to money.