| A | B |
|---|
| go public | change from a private company to a public listed company(PLC) by selling shares to outside investors for the first time (with a flotation) |
| due diligence | a detailed examination of a company and its financial situation |
| prospectus | a document inviting the public to buy shares, stating the terms of sale and giving information about the company |
| flotation | an offer of a company's shares to investors (financial institutions and general public) |
| underwriting | The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). |
| stocks and shares | certificates representing ownership of a company. |
| listed companies | companies included and traded on a given exchange |
| preferred shares | Preferred stock generally has a dividend that must be paid out before dividends to common stockholders |
| ordinary shares | do not have any predetermined dividend amounts |
| primary market | A market that issues new securities on an exchange |
| secondary market | A market where shares are repeatedly traded on the stock exchange |
| nominal value ( of a share) | The stated value of an issued security that remains fixed |
| market price (of a share) | the price it is currently being traded at on the stock exchange |
| bid (for a share) | the buying price |
| offer (for a share) | the selling price |
| spread | the difference between bid and offer price |
| blue chips | stocks in large companies with a reputation for quality, reliablity and profitability |
| growth stocks | stocks that are expected to regularly rise invalue |
| income stocks | stocks that have a history of paying high dividends |
| defensive stocks | stocks that provide a regular dividend and stable earnings, but whose value is not expected to rise or fall very much. |
| value stocks | stocks that investors believe are currently trading for less than they are worth - when compared with the company's assets. |
| penny stock | A stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. |
