A | B |
share | a portion of stock |
equities | claims of ownership in a corporation |
capital gain | the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller |
capital loss | the difference between a lower selling price and a higher purchase price resulting in a loss to the seller |
stock split | the division of a single share of stock into more than one share |
stockbroker | a person who links buyers and sellers of stock |
brokerage firm | a business that specializes in trading stocks |
stock exchange | a market for buying and selling stock |
OTC market | an electronic marketplace for stocks and bonds |
Nasdaq | American market for OTC securities |
futures | contracts to buy or sell at a specific date in the future at a price specified today |
options | contracts that give investors the choice to buy or sell stock and other financial assets |
call option | the option to buy shares of stock at a specified time in the future |
put option | the option to sell shares of stock at a specified time in the future |
bull market | a steady rise in the stock market over a period of time |
bear market | a steady decline in the stock market over a period of time |
Dow | index that shows how certain stocks have traded |
S & P 500 | index that tracks the price ranges of 500 different stocks |
Great Crash | the collapse of the stock market in 1929 |
speculation | the practice of making high-risk investments with borrowed money in hopes of getting a big return |