| A | B |
|---|
| Securities | Stocks and bonds |
| Securities Exchange | A marketplace where brokers who are representing investors meet to buy and sell securities |
| Floor Brokers | Buy and sell stocks on the exchange |
| Specialists | The brokers to the floor brokers |
| Auction Market | A type of market where transactions are sold to the highest bidder and bought from the lowest offeror |
| OTC Market | A network of brokers who buy and sell the securities of corporations that are not listed on a securities exchange |
| 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 pessimism |
| Day Trader | Buys and sells stock within a short period of time, also called a speculator |
| Margin Agreement | A contract to borrow money from a broker to buy stock |
| Leverage | The use of borrowed money to buy securities |
| Margin Call | When the market value of a margined stock decreases to about half of the original purchase price and the investor must give more collateral for the loan |
| Short Selling | Selling stock borrowed from a broker that must be replaced at a later time |
| Buy and Hold | Purchasing stocks as a long-term investment, selling years later when they have gained value and paid dividends over the years |
| Stock Split | An increase in the number of outstanding shares of a company's stock |
| Dollar-cost Averaging | The systematic purchase of an equal dollar amount of the same stock at regular intervals, usually resulting in a lower average cost per share |
| Direct Investment | Buying stock directly from a corporation |
| Dividend Reinvestment | Using dividends previously earned on the stock to buy more shares |
| Ticker Symbol | Abbreviated name used to identify a stock on the stock listings |
| P/E ratio | The price of a share of stock divided by the corporation’s earnings per share over the last 12 months, also called the price per earnings ratio |
| Closing Price | The final stock price at the end of trading for the day |
| Net Change | Compares the closing price today with the closing price of the day before |
