| A | B |
|---|
| Common Stock | Shares of a company that do not guarantee a dividend and have more risk and volatility than preferred shares. |
| Corporation | A business that is owned by stockholders and has right and responsibilities as if it were a person. |
| Dividend | Part of a company's profits (earnings) that it pays as money to stockholders. |
| Earnings | The amount of money that remains after subtracting the company's expenses from its revenue. |
| Investor | Someone who risks funds by purchasing financial products with the hope the investments will increase in value over time. |
| IPO | Initial Public Offering; the initial sale of stock to the public by investment bankers. |
| Preferred Stock | Shares of ownership of a company in which the share holder is guaranteed a dividend if one is declared and whose shares are usually not as volatile as common stock. |
| Private Company | A company that is owned by a person, family, or small group of investors that does not sell shares of stock in the company to the public. |
| Public Company | A company that is owned by investors who buy shares of stock, partial ownership of the assets of a business, in the corporation usually through one of the stock exchanges. |
| Risk | The chance of losing all or part of an investment. |
| Stock | A type of security that signifies ownership in a corporation and represents a claim to a part of the company's profits or losses. |
| Tombstone Ad | An announcement appearing in financial publications such as the Wall Street Journal announcing a company's Initial Public Offering (IPO). |
| Underwriter | Typically an investment banker, buys an entire new securities issue from the company or government offering it, and resells the issue as individual stocks or bonds to the public. |
