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Stock Market Vocabulary 2

New terms for SMG

AB
Blue chip stockThe type of common stock from a large and financially stable corporation.
Broker's feeA 2% fee charged on all transactions in the SMG.
Net proceedsThe value of a stock sell minus the broker's fee.
IndexA statistical measure of changes in stocks in the overall market.
Market capitalizationA company's current stock price times the number of shares stockholders own.
Bull MarketThe economy is great and stocks are rising.
Bear MarketThe economy is bad and stocks are falling.
New York Stock ExchangeThe most prestigious exchange known as the "Big Board".
NasdaqThe most popular exchange called an over-the-counter market.
The American ExchangeThe third largest exchange in the U.S. under the Nasdaq.
Standard & Poor's IndexAn indicator consisting of 500 large cap stocks.
Dow Jones Industrial IndexThe best known and widely followed market indicator.
Small capRefers to stocks with a relatively small market capitalization.
Large capRefers to stocks with a relatively large market capitalization.


Ms. Hopkins

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