| A | B |
|---|
| corporation | Issues stock that may be traded openly on the stock markets |
| dividends | a distribution of funds from corporate profits |
| income stock | stock that pay high dividends over time |
| growth stock | companies that reinvest profit rather than distribute dividends |
| blue chip stock | stocks of large, well-established companies |
| defensive stock | stock that remains stable during an economic decline |
| cyclical stock | these stocks do well in a good economy but poorly in a bad one. |
| bull market | a market characterized by stocks that rise in price and much optimism |
| bear market | market that is characterized by stock selling, sluggish market and pessimism |
| floor broker | those who by and sell stock |
| board of directors | voted in by the common stockholders |
| stock split | an increase in the number of outstanding shares of stock |
| stock index | a benchmark that stock investors use to judge investment performance |
| auction | the stock exchange where buyers and sellers come together to buy and sell securities |
| leverage | borrowing money in order to purchase stock |
| market value | the price one pays when purchasing stock |
| par value | the assigned dollar value that is printed on a stock certificate |
