ch 9
Terms
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- selling short
- is selling a stock that has been borrowed from a brokerage firm and that must be replacedat a later date.
- growth stock
- issued by a corporation whose potential earnings predicted earnings may be higher than the average earnings predicted for all the firms in the country
- total return
- is a calcualtion that includes the annual dividend as well as any increase in the orginial purchase price price of the investment
- stop order
- is a typeof limit order to sell a particular stock at the next available oppurtunity after its market price reaches a specified amount
- penny stock
- sells for less than $1 a share although it can sell for as much as $10 a share
- account executive
- stockbroker is a licensed individual who buys or sell securities for clients
- small cap stock
- a stock issued by a company with a capitalization of $150 million or less
- cyclical stock
- has market value that tends to reflect the state of the economy
- commision
- a fee charged by a brokerage firm for the buying and / or selling of security
- primary market
- a market in which an investor purchases securities from a corporation through an investment bank or some other reprensentative of the corporation
- round lots
- 100 shares or multiples of 100 shares of particular stock
- private corporation
- a private cor. shares are owned by relatively small group of people and are not traded openly in stock market.
- defensive stock
- a stock that remains stable during declines in the economy
- blue-chip stock
- considered a safe investment that generally attracts conservative investors
- over- the-coutner(OTC)market
- is a network of dealers who buy and sell the stock of corporations that are not listed on a securities exchange
- current yield
- th annual dividend divided by the investment's current market value
- bull market
- occurs when investors are optimistic about the economy and buy stocks
- secondary market
- a market for existing financial sercuties that are currently traded among investors
- capitalization
- usually defined as the total amount of stocks and bonds issued by a corporation
- portfolio
- consists of all securities held by an investor
- public corporation
- public corp. shares are opened where anyone can buy them.
- intial public offering (IPO)
- occurs when a company sells stock to the general public for the first time.
- bear market
- occurs when investors are pessimistic about the economy and sell stocks
- large cap stock
- the stock of a corporation that is issued a large number of shares of stock and has a large amount of capitaliziation
- income stock
- pays higher-than-average dividends compared to other stock issues
- par value
- is an assigned dollar value that is printed on stock certificate
- price-earnings (PE) ratio
- is the price of one share of stock divided by the corporation's earing per share of stock outstanding over tha last 12 month
- earnings per share
- are a corporations net or after-tax earnings divided by the number of outstanding shares of common stock
- odd lots
- contains fewer that 100 shares of a stock
- proxy
- a proxy is a document that transfers a stockholder's voting rights to someone else.