| A | B |
|---|
| What your $10 would be worth if there was a 2:1 stock split | $5 |
| How many stock shares you would have if you owned 25 and there was a 2:1 stock split | 50 |
| Stock that consistently pays large dividends | Income |
| Stock in a company that reinvests its profits to build value over time | Growth |
| USAirways Stock | Cyclical |
| Kroger Stock | Defensive |
| Stock that sells for $5 or less | Penny |
| Stock in a company that has a history of being a solid company with growth and long-term stability | Blue-Chip |
| Capital Gains Tax | Must pay when you sell a stock and make a profit |
| Capital gains tax is higher when | you sell a stock within a year of purchasing it |
| Capital gains tax is lower when | you sell a stock after owning it at least a year |
| Common stock | You get one vote for every share owned; no guaranteed dividends |
| Preferred stock | Guaranteed dividends; no voting privileges |
| Public | Type of company that sells stock |
| Dividend | Portion of company's profits that are distributed to shareholders |
| Stock | Investment in the ownership of a corporation |
