| A | B |
|---|
| common stock | general ownership in a corporation and a right to share in its profits; no stated dividend rate; one vote per share owned; able to attend annual meeting |
| market (current) value | the price at which a share of stock can be bought and sold in the stock market |
| full service broker | works at a brokerage house providing securities information, research, & planning |
| NASDAQ | the US OTC market |
| NYSE | best known stock exchange |
| preferred stock | has priority over common stock in the payment of dividends; dividends are usually a set rate; generally less risky than common stock however usually no voting rights |
| price-earnings ratio | stock price/earnings per share |
| over-the-counter market | a network where securities transactions occur using telephones and computers rather than on an exchange |
| yield (aka return) | the percentage of money earned on a savings or investment over a year; higher return = higher risk |
| share | a unit of ownership |
| securities | stocks, bonds and mutual funds; sold by corporations and governments to raise money. |
| stock index | a measurement of investment values |
| stock exchange | a business organization that accommodates the buying and selling of securities |
| stock certificate | printed form showing ownership in a corporation |
| S&P500 | a stock index based on stock values of 500 major companies |
| stock investment | giving money for use by a business which results in ownership in the business because of purchasing of a share of stock |
| stockbroker | a licensed specialist in the buying and selling of stocks and bonds; paid by commission |
| stockholder | person who buys shares in a corporation |
