Economics 3
dividend
A share of profits received by shareholders
plunge
A significant drop in the stock market that is more exaggerated than normal dips that would take place.
Points
A stander unit of value in the stock market " Up a point means an increase of $1 a share.
Prospectus
A statement explaining the plan of a business or financial endeavor, including the financial status, the officers, recent performance, and the profits that an investor may realize
profit
After all expenses are subtracted the amount of money left after sale.
Commission
An amount given to a broker for his services. Sometimes it is a flat fee, other times it is a percentage.
___________ are the safest stock investment you can make since these corporations are so large and powerful they can withstand a downturn in the economy.
Blue chip stock
Give a two examples provided that represents a blue chip stock.
Boeing, AT&T
1929 crash
Brought on the great depression which hurt countries all over the world during the 1930's
penny stock
Considered the first and lowest level of stocks. They are usually going to stay small.
A price-earnings ratio is figured out by calculating the relationship between the price of the companies stock and the __________ a company makes in the entire _____ it is figured out by dividing the closing price of the stock by the earnings per share of each stock.
Earnings , Year
If the company has been making a good profit against the competition you may continue to see the profit grow, and that is not a good sign for investing.
False
The Wall Street Journal actually added to the fears of people in 1929 by reporting in a irresponsible manner about unfounded fears.
Faulse
When you enter the business world of purchasing stocks, you must realize that this is not __________.
Gambling
When the 1900's brought the ____, Wall Street hit its highest point up to that time and the New York Stock Exchange was getting all the business it could use
Industrial Revolution
Millions of people purchase __________which is an easy way to have a professional buy stocks for them.
Mutual funds
Some of the stocks were ____ to be put in the NYSE, so a brisk business was running outside on the curb of the street.
Not reliable enough
October 19,1987
One of the most significant days of stock market panic in it's history. The NYSE 508 points in one day.
Shareholder
One who owns shares of a business on the stock exchange
floor broker
Person who is actually in the stock exchange and will perform the purchase of the stock for the buyer
PE Ratio
Price-earnings ratio; relationship between price of stock and earnings made in an entire year
Volatility gives you an idea of the risk and ______ potential of the stock
Profit
A broker is the person who does the actual ____ of the stocks for you
Purchasing
retail
Selling to consumers with cost included to cover manufacturing , advertising, overhead and other concerns.
In our story above, the broker tells you, " Well, right now a share in Mattel Toys is going for 10 dollars (not the actual price), buy my ____ will cost you 40 dollars, so you can buy six shares of Mattel."
Services
High, low, and Close
The activity the day before, The highest and lowest price of the stock, along with the closing price.
net change
The change of the price of the stock from the previous day
Volitility
The risk and profit potential of a particular stock
financial section
The section of the newspaper that gives financial information about the stock market.
In reality, both crashes were started by people influenced by the emotion everyone shares, fear.
True
When you call a broker and arrange to buy stock. The broker calls a person on the floor of the exchange, probably an employee of his.f
True
The 52 weeks high and low will tell you about the ________ of a stock. If the numbers show little difference between the other , there is less risk than with other stocks but there is less opportunity for gain.
Volatility
Broker Services
Work for the shareholder done by the broker, such as selling and buying stock
Receipt
Written proof that a purchase has been made
open mutual fund
Your money in the fund is combined with millions of other investors to buy stocks and bonds.
demand
a call for a product or service, a need or a want
downturn
a dip in the market
fixed dividend payment
a financial return that has set a limit
symbol
a one to four character symbol that is a kind of nickname for the company.
dividend
a share of profits received by a share holder
In some cases, many ________ brokerages are offering significant discounts for conduction purchases over the internet.
discount
When you told the broker you wanted to get those 6 shares of the stock. He sent a message to the person working on the _________________
floor of the stock exchange
financial panic
investors fears become so powerful that movement of the stock exchange occurs.
Some Christians have a fear that buying on the stock market is no different from betting on a horse race. But buying stock should be equated with buying into a_____________ of a business - after all you money is going into a corporations that will use it to ________.
partnership, grow
a standard unit of value in the stock market is a ______
point
After all the expenses are subtracted, the amount of money that is left is called the _______________
profit
issue
the act of a company selling stock
common stock
the most basic stock a company will issue. It carries higher risks in other stocks
which of these words is NOT a name for a stock? equities tickers securities
tickers
If you don't see any profit from the company recently , that is a sign that it may not be a good company for investment.
true
Rise
upturn in the market which may signify a good time to sell
__________ was the year the stock market crash started the great depression after an incredible plunge. Which made millionaires into paupers in hours.
1929
In the 1700's the first banks in American history were being created, and once again ____ was needed to make the start successful
Cash
T/F: England's first stock exchange began in 1873
False
T/F: The Belgium Stock Exchange began with a handful of men standing in front of a buttonwood tree near the Trinity Church in East Manhattan after the American Revolution
False
When selling your stock you would call a broker and the process would go almost the same way. The broker will deduct his _________ and then pass the money on to you.
commission
People felt a _______was due since 1987 market had been growing so strongly. This meant that the market is trying to steady it self out after a monumental movement. People felt that the market would have to take a breather after all that growth and settle back to a slow routine.
correction
A share of profits received by a shareholder is called a ___________
dividend
There is more of a risk with _______ stock and the gains and losses of the company directly affect the ________stock. You get a high chance of making a profit with _______stock.
Common, common, common
Wall Street Journal
Daily newspaper which focuses on stock market activity
If you do not see a demand for a product it is bust to be quick about buying stock from the company.
False
If you see a wide margin between the high and low numbers you can tell that there would be a smaller risk than with other stocks which have a large difference between the numbers in that column.
False
Putting money into stocks is a risky thing.
False
T/F: If a person bought a bond, they received a paper for a certain weight of gold
False
T/F: If you want to buy shares of Mattel Toys, you run down to Toys-R-Us and tell them you want twenty shares of Mattel
False
T/F: People will subscribe to publications such as USA Today or The Baltimore Sun to get information on investing more weekly
False
The S&P list contains the 500 smallest publicly held companies
Faulse
competition
Market-wise the rivalry existing for the consumer dollars
In an ________________you put your money in the fund and the investment company combines that money with th money of millions of other investors, and buys stock and bonds with it.
Open Mutual Fund
stockholder
Someone who has purchased stock, also know as a shareholder.
Broker
The person who does the actual purchasing of the stocks for you
floor
The place on the exchange where the actual buying and selling is done.
Crash
The stock market events of, 1927. The investors lost millions because of the market that kept falling.
By looking at the net change, you can see the change of the price of the stock of a previous ______you can learn if the price is dropping or rising.
day
transaction
financial agreement and exchange of money for shares.
The activity the day before, The highest price and lowest price of the stock along with the closing price of the stock of the previous day. You can learn whether the price is rising or dropping.
high, low, closing
After the broker has called the floor broker, the floor broker goes to the area allotted for that particular stock. He buys the amount of stock from the company. He ___________ it on the floor and then back to your brokerage _____________________ The stock is yours.
reports, service? (you didn't have an answer for the second blank so I am guessing)
blue chip stock
safest investment, corporations involved are so powerful they can withstand a downturn in the economy
fall
similar to a drop in the market, signifies a good time to sell if you have stocks.
climb
similar to a rise in the market, signifies a good time to buy if you are looking to purchase stocks.
percentage-wise, which stock market crash was worse?
1929
The record-breaking dead bottom low did not come until July _______ as the market lost approximately ______% of his value
1932, 89
The most recent stock market crash occur ed on Oct. 19 ___
1987
The AMEX stock usually have ____ letters
3
When you see the volume figure, you are looking at the amount of stocks traded simply multiply the volume number by ________
100
From its humble origins of the ____, the stock market in America has grown to be a financial force in the world today.
1700's
Stock Ticker
A device which gives constant updates on the activity of the New York Stock Exchange
dip
A drop in the market that may signify a good time to buy stocks
Barron's
A financial weekly publication which features information on buying and selling stock
Stock Certificate
A form of proof of possession of a stock. Mostly obsolete these days.
brokerage house
Initial location where stock transactions take its first steps.
Two questions to ask before you invest any money.
Is the company making a product or service that somebody wants? How has the company been doing against its competition?
Common stock is a type of stock that simply shows that you own part of the company, it is the basic stock a company will ________
Issue
A unit of the equal parts of the capital stock divided by a corporation is called a ____
Share
52 Weeks high and low
Stocks volatility. Greater the margin between the two members, the greater risk for stocks to gain or lose.
Per cent yeild
Tells you how much of the price of the stock you will be paid in dividends by the end of the year.
Which statement is NOT true? ~A broker is the person who will do the actual purchasing of the stocks for you ~A receipt is written proof that a purchase has been made ~The Wall Street Journal is the daily newspaper which focuses on stock market activity ~AMEX is another name for the American Stock Exchange ~The first stock exchange was the New York Stock Exchange
The first stock exchange was the New York Stock Exchange
volume
The number of stocks traded on the previous day
preferred stock
The owners of this type of stock will collect the dividends first before the owners of common stock.
NYSE symbols are usually one, two , or three
True
One of the first rules any investor will tell you is. Don't invest any money that you can not afford to lose.
True
Purchasing and selling has to do with the rise and dips in the market
True
Standard and Poor's is a type of stock index favored by professionals because a wider range of public companies than the Dow Jones industrial average does.
True
T/F: "The Curb Exchange" continued to grow and was renamed the American Stock Exchange, also known as AMEX
True
T/F: In addition to bonds, the banks sold little parts of their banks to whomever had the money and the desire to own a share in the business
True
T/F: In the early days of our nation, the Colonial Government was looking for a way to finance wartime operations, so it sold bonds
True
T/F: Mattel, as well as thousands of other companies, offer the opportunity to buy a part of their company by selling shares
True
T/F: New York Stock Exchange is also known by it's initials, NYSE
True
T/F: The very first stock exchange was created in 1531 in Antwerp, Belguim
True
T/F: Traders would meet on what was once a farmer's market area known as Wall Street in New York
True
T/F: When you purchase a share, you have purchased a little piece of the company
True
When you buy a stock you will be referred to as a stockholder or a share holder.
True
When you buy stock you are buying a small percentage of everything owned by the company.
True
Your broker tells someone to buy 6 shares of Mattel stock for you. The person he is talking to is called the sales broker and the transaction takes place on the floor of the stock market.
True
Your portfolio is all of the various stocks or bonds you as an investors hold
True
look closely at the volume number if a tiny"Z" is shown before the number, the volume is not giving in the hundreds but is the actual number of stocks traded
True
Correction
When the market is trying to steady itself out after a monumental movement.
The floor broker purchases your 6 shares of Mattel and then reports the trade to Floor. That means that hundreds of computers all over the NYSE have recorded your
Transaction
A preferred stock is a financial return that has a set limit
True
A stock is a representation of the part of the company that it yours.
True
First in a company must be issued. then the company will begin to issue preferred stock
True
Investors fears can become so powerful that increased movement on the stock exchange occurs causing a financial panic.
True