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Stock Market Basics 2

AB
DividendThe part of the company's profits which is usually distributed to companyÕs shareholders
PortfolioA selection of shares usually held by a person or fund
BidThe highest price a buyer is willing to pay for a stock. When combined with the ask price information
CommisionThe fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
DiversificationLimiting investment risk by purchasing different types of securities from different companies representing different sectors of the economy.
DOW JonesAn average made up of 30 actively traded stocks. The DJIA is one of the most widely quoted stock market averages in the media
Stock SymbolA unique series of letters assigned to a security for trading purposes. Also known as Òticker symbols.Ó
52 Week High/LowThe highest and lowest prices that aÊstock has traded at during the previous year. Many traders and investors view the 52-week high or low as an important factor in determining a stock's current value and predicting future price movement.
Share of Stockthe smallest unit of ownership in a company.
If you own a share of a companyÕs stockyou are a part owner of the company.
Market CapThe total dollar market value of all of a company's outstanding shares - calculated by multiplying a company's shares outstanding by the current market price of one share.
The investment community uses this figure to determine a company's sizeas opposed to sales or total asset figures.


CSB in the School of BIS
School of Business, Innovation and Science
OR

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