| A | B |
|---|
| bonds | IOU from a corporation, local government or federal government to raise money |
| Stock | represents ownership of a corporation. Stockholders own a share of the company |
| Bull Market | a prolonged period of rising stock prices and a general feeling of investor optimism |
| Bear Market | a prolonged period of falling stock prices and a general feeling of investor pessimi |
| Stockholder | also known as shareholders, are the owners of a corporation |
| Dividends | profits that the corporation pays to stockholders |
| Capital Gains | increase in the value of the stock above the price initially paid for it |
| Blue Chips | stock of large well established corporations with a solid record of profitability |
| Stock Split | a direct increase in the amount of outstanding or available stock by splitting stocks (ex: 1 to 2), which in turn has an effect upon the price |
| Dividend Reinvestment | using dividends previously earned on stocks to buy more shares |
| Market Value | the price at which stock is bought and sold in the market place |
| Common Stock | a type of stock that pays a variable dividend and gives the holder voting rights |
| Preferred Stock | stock that pays a fixed dividend and caries no voting rights |
| Growth Stock | stocks in corporations that reinvest their profits into the business so it can grow |
| N.Y. Stock Exchange | the largest organized exchanged in the United States |
| NASDAQ | the largest technology exchange in the US |
