| A | B |
|---|
| Dividend | A portion of a corporation's profits distributed to shareholders |
| Earnings | Company revenue minus its profit |
| Investor | One who purchases financial products with a goal of increasing their value over time |
| Initial Public Offering | First time a corporation offers stock to the public, facilitated by investment bankers |
| Liquidity | The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price |
| Private Company | A company that is owned by a person, family, or small group of investors. Shares are not publicly traded. |
| Public Company | A company owned by investors who purchase shares of company stock. |
| Risk | Chance that you may lose all or part of an investment |
| Stock | Security type that represents ownership and a claim to a portion of a corporation's profits/losses. |
| Tombstone Ad | Announcement declaring a company's IPO. |
| Underwriter | Investment banker who buys an entire new securities issue to offer for resale individually to the public |
| Volatility | Indication of how quickly and how much the value of a market, market sector or investment changes. |
| Diversification | Strategy to spread risk between several investments |
| Common Stock | Security which affords voting rights, fluctuating values |
| Preferred Stock | Security with priority for a corporation's profits/losses, but without voting rights |
