Investing - 12.2 - Stocks - Buying And Selling - WHS Albert

Securities Exchanges

Places where brokers, representing buyers and sellers, meet to trade securities

Short Selling

Selling stock borrowed from a broker that must be replaced at a later time.

Day Trading

The buying and selling of securities on the same day, on the basis of small, short-term price fluctuations.

Initial Public Offering

The first time a stock is offered to a select group of the publin in the Primary Market

Mutual Fund

The pooling of money by many investors to buy a selection of securities

Leverage

The use of debt financing of an investment to maximize the return

Pension

A sum of money paid regularly by an employer to an employee after retirement.

Discount Broker

A broker that only takes and executes orders to buy and sell; may give general advice

Full-service Broker

A broker that provides a large variety of services to its clients, including research and customized advice

Margin Account

A brokerage account in which the customer has been extended borrowing privileges by the brokerage firm

Annuity

A contract sold by an insurance company that provides the investor a series of regular payments, usually after retirement.

Trading Posts

A specific location on the floor of a stock exchange where a stock is traded

Margin Call

A demand by a broker that a customer deposit enough to bring his margin up to the minimum requirement

Security

A financial asset that can be bought and sold in a financial market.

Securities Broker

A financial intermediary that acts as an agent for investors who want to buy or sell securities

Secondary Market

A financial market in which investors buy and sell existing securities among each other

Primary Market

A financial market in which new issues of a security are sold by a corporation to initial buyers.

BATS

A global network of stock exchanges in the US and Europe that handles trades through a computerized network

Buy And Hold

A long-term plan of holding stock for several years to receive dividends and make capital gains

Dollar Cost Averaging

A long-term plan of purchasing an equal dollar amount of the same stock at equal intervals

NYSE

A major stock exchange that handles trades through a combination of auctions and computerized networks

NASDAQ

A major stock exchange that handles trades through a computerized network

Floor Broker

A member of a brokerage house who completes a customer's buy or sell order on the floor of a stock exchange

Dividend Reinvestment Plan

A plan that allows current stockholders the option to reinvest in the corporation by using their dividends to purchase more stock

Bear Market

A prolonged period of falling stock prices and a general feeling of investor pessimism.

Bull Market

A prolonged period of rising stock prices and a general feeling of investor optimism

Stock Split

An increase in the number of outstanding shares with a proportional decrease in the market price

Retail Investor

An investor who is an individual, not a company.

Limit Order

An order to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level

Market Order

An order to buy or sell a security at the best price available at the time it is placed

Indirect Investing

Buying investments that invest on the shareholder's behalf

Direct Investing

Buying stock directly from corporations rather than through an exchange

Circuit Breakers

Drops in the S&P 500 at which trading stops for a period of time on US stock exchanges

Volatility

Indicates how much and how quickly the value of an investment changes.

ICE

Intercontinental Exchange; a global network of securities exchanges including the NYSE

Institutional Investor

Large organizations - such as pension funds, mutual funds, and insurance companies - that invest their own funds or the funds of others

Specialist

Member of a stock exchange who maintains a fair and orderly market in one or more securities.

Market Timing

Moving into and out of different investments because of beliefs about their expected performance

Agent

One who has authority to act for another