| A | B |
|---|
| Volitility | When unexpected changes occur |
| Risk | The chance that a loss can occur |
| Earnings Per Share | Indiciates profit per share of stock |
| Price Earnings Ratio | Indicates whether a share of stock is overpriced |
| Common Stock | These shares have voting rights |
| Dividend | When a company distributes its profits to shareholders or issues stock |
| 2 for 1 Split | Shareholders get 1 more share for each share they own |
| Preferred Stock | Guarantees a certain dividend payment |
| Income Stock | Steady earnings, higher than average dividends |
| Blue Chip Stock | Strong reputation for high earnings, regular dividends |
| Growth Stock | Beta is 1.5, No dividends, steady growth |
| Speculative Stock | Beta is 2.0 + / High risk |
| Cyclical Stock | Stock performance depends on economy |
| Counter Cyclical Stock | Downturns in the economy do not affect stock |
| Beta | Measures volatility / risk |
| Bull Market | Investors are optimistic |
| Bear Market | Investors are pessimistic |
| S & P 500 | Market basket of stocks to measure consumer spending |
| Dow Jones Industrial Average | Indicator of how stock market is performing overall |
| Securities & Exchange Commission | Federal Regulation Agency that investigates stock fraud |
| Stock Broker | Professional who buys/sells stock and gives investment advice |
| Stock Market | Place where stock is traded |
| Bond | When investor lends money to a company or government for a certain time and interest is paid |
| Mutual Fund | A group of shareholders own parts of a company's shares |
| Diversification | When a portfolio includes different classifications of stocks/bonds |
