| A | B |
|---|
| IPO | the initial offering of stock when a company switches from being privately owned to publicly owned |
| liquidate | selling a stock |
| available equity | the amount of money available for stock purchases and short sale transactions |
| cash balance | the amount of cash left from your initial investment |
| net equity | the amount of money you have gained or loss |
| P/E | current price of a stock divided by its current yearly earnings per share |
| S&P 500 | an index of 500 corporations representing a variety of industries |
| broker | an individual or business that specializes in bringing together buyers and sellers |
| limit order | an order to buy or sell a stock at a certain (or better) price |
| Dow Jones Industrial Average | an index of 30 large US corporations |
| dividend | a sum of money paid regularly by a company to its shareholders |
| Bear market | a market in which stock prices are falling |
| Bull market | a market in which stock prices are rising |
| bond | Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time |
| diversification | Limiting investment risk by purchasing different types of securities from different companies representing different sectors of the economy |
| ETF (Exchange Traded Fund) | A special type of financial trust that allows an investor to buy an entire basket of stocks through a single security, which tracks and matches the returns of a stock market index. |
| futures | Contracts to buy or sell securities at a future date |
| mutual fund | A fund managed by an expert who invests in stocks, bonds, options, money market instruments or other securities |
