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| bear market | a market condition that occurs when investors are pessimistic about the economy and sell stocks. |
| blue chip stocks | Large, national company witha solid record of earnings and/or dividend growth and a reputation for high quality management and/or products. These stocks are expected to provide their investors with a sizeable return despite the ups and downs of the economy. |
| dividends | the portion of the corporation's profits that are paid to each stockholder. |
| DJIA | Dow Jones Industrial Average |
| NASDAQ | National Association of Securities Dealers Automated Quotations. Largest electronic screen based equity securities trading market in the US - 2nd largest by market capitalization in the world. |
| speculative stocks | A stock which is considered to be very risky, in comparison with its expected return. One example of an often speculative stock is a penny stock. |
| S&P 500 | an index that measures the activity of 500 stocks |
| stock symbol | A stock symbol or ticker symbol is a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. |
| financial market risk | Day to day potential for an investor to experience losses from fluctuations in securities prices. |
| global market risk | Possibility that out of country factors will decrease price of stocks. |
| inflation risk | The risk borne by an interest bearing asset, such as a loan or a bond. As rates rise, the price of a fixted rate bond will fall |
| coroporate and govenrment bonds | A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default. Corporate bonds are considered higher risk than government bonds. As a result, interest rates are almost always higher, even for top-flight credit quality companies. |
| mutual funds | A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings. |
| real estate | Land, including all the natural resources and permanent buildings on it. |
| NYSE | A stock exchange based in NYC which is considered the largest equity-based exchange in the world. |
| stockbroker | One that acts as an agent in the buying and selling of stocks or other securities |
| interest rate risk | The risk due to variability of interest rates. As rates rise, the price of a fixed rate bond will fall and vice versa. |
| stock financing | Like accounts receivable financing, stock financing offers a flexible loan that allows companies to financially cushion peaks in their stock building. The level of stock financing depends on the type of stock and the nature of the customers. For example, a higher percentage of loan can be granted for presold stocks. Stock financing is always provided in combination with accounts receivable financing |
| portfolio diversication | Combined holidngs that are spread out across many different types of investments so that there is less risk. |
| buisness failure risk | The risk that a company will go bankrupt. |
| 529 plans | A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996 |
| equity financing | This is when a company raises money by issuing stock |
| Commission | A fee paid to an agent for a service, usually a percentage of the total amount |
| bull market | a market conditon that occurs when investors are optimistic about the economy buying stock. Becasue of the greater demand for stock, the value of many stocks and the value of the stock market as a whole increases. |
| Over the Counter Market | A decentralized market of securities not listed on an exchange where market participants trade over the telephone, facsimile or electronic network instead of a physical trading floor |
| Earnings Per Share | A company's after tax earnings divided by the number of outstanding shares |
| Price-To-Earnings Ratio | Price of one share of stock divided by EPS. Low is good. |
| Last Trade | Price of the stock when it was last traded |
| 52 Week High & Low | The highest and lowest price in a year that the stock was traded. |
| Market Order | A request to buy or sell a stock at the current market price |
| Limit Order | A request to buy or sell a stock at a specific price. |
| Securities | All investments, bonds, mutual funds, stocks |
| Stock | ownership in a corporation |
| Shareholder | The owner of stock |
| Yield | A return on an investment in the form of interest or dividends. |
| Common Stock | Just the basic stock that we're used to trading. You can vote. |
| Preferred Stock | Guarantees regular dividend payments for a specific time. Preferred stock price is less volatile than common, and virtually eliminates the possibility of large capital gains. get money back first if the company goes down. No vote. |
| Income Stock | Pays higher than average dividends. |
| Growth Stock | A company whose potential earnings may be higher than average. |
| Large Cap Stock | A company that has issued a large amount of shares. |
| Small Cap Stock | Smaller less established companies with fewer than 500 million of stock issued. |
| Defensive Stock | Remain stable during declines in the economy. Procter and Gamble. |
| Private Corporation | Issue stock to a small group of people. Not traded publically. |
| Public Corporation | Sells its shares on one of the open markets. |
