| A | B |
|---|
| stock | piece of ownership in a company |
| share | one individual "piece" of stock |
| Dow Jones Industrial Average | composite number that represents the share prices of 30 U.S. “blue-chip” |
| NASDAQ | composite number that represents popular technology stocks |
| S&P 500 | measures 500 U.S. stocks that are supposed to be representative of the overall exchange |
| bull market | when stock prices are rising faster than their historical averages |
| bear market | when stock prices are falling faster than their historical averages |
| mutual fund | is a fund created by an investment company which combines money from many investors and invests it in a group of shares, bonds, or other investment vehicles |
| dividends | money that a company gives to its shareholders when it has extra profit |
| P.E. ratio | the price of a company’s stock divided by its Earnings Per Share |
| Blue Chip stock | the stock of a large company that has a long history of stable operation and solid performance |
| SEC (securities and exchange commission) | the government agency responsible for protecting investors by monitoring and regulating brokers, dealers, and the bonds in the U.S. |
| market crash | happens when stock prices have dropped dramatically; most famous occured Oct 29, 1929 |
| 9% | historic rate of return on stocks |
| 8000 | approximate number of stocks available to buy on the exchange |
| investor | a person who owns stock |
| portfolio | a person's complete list of stocks and their value |
| Great Depression | Event of 1929, when the stock market values crashed |
| broker | person who invests for you in stocks |
| commission | fee paid to a broker for each trade (buy or sell) made on your behalf |
| close | the last price of the trading day |
| New York Stock Exchange | Oldest and largest exchange, found on Wall Street in NYC |
| volume | total number of shares traded in a day |
| open | the price paid in a stock's first transaction of the day |
| diversification | reducing risk by combining different investments |
| ticker symbol | abbreviated hame for a company |
| public company | A company sold on the stock exchange and owned by shareholders |
| private company | A company not for sale on the stock exchange. It is privately owned by a person, family or group. |
| profit | the money a business earns when income from sales is greater than the costs of making the product |
| loss | the money a business loses when costs of making a product are higher than the income received from sales |
| risk | the chance of losing money |
| industry (sector) | a group of companies that do the same thing |
| upgrade/downgrade | When broker experts raise or lower their rating of a stock |
| parent company (conglomerate) | a business that controls a set of smaller companies, often producing a variety of goods/services |
| goods | a physical item produced by a business |
| service | a task performed by a business for its consumers |
