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New Investment Vocabulary

AB
securitiesInvestments
stockbrokerA person who buys and sells stocks for you
yieldAmount, in cash, that returns to the owners of a security
stock symbolLetters assigned to a security
DividendSum paid quarterly
StockPart ownership in a company - an investment
Common StockShares entitling their holder to dividends
Preferred StockEntitles holder to a fixed dividend
commissionEarned money
Dow Jones Industrial AverageA price weighted average of 30 significant stocks traded on the New York Stock Exchange.
52 Week High & LowThe highest and lowest prices that a stock has traded at during a year.
Market orderAn order to trade a stock at the current market price.
Bear MarketA market which prices are falling, which encourages selling.
Bull MarketPrices of shares are rising or expected to rise - encourages people to buy more shares.
NASDAQA global electronic market place for buying and selling securities adn is the benchmark index for US technology stocks.
New York Stock ExchangeA stock exchange based in New York City. Considered the largest equities-based exchange.
529 PlansAn education savings plan
Global Market RiskLosses due to factors that effect overall performance of the global financial market. Ex. disasters.
Blue Chip StockStock of a large well-established and financially sound company. that has operated for many years.
Speculative StockA stock with a high degree of risk - substantial returns.
ShareholderOwners of shares in a company.
Income StockPays regular, higher dividends. Doesn't grow - example - real estate.
Standard & Poor's 500 Stock IndexAn index of 500 stocks chosen for market size, liquidity, and industry grouping.
Diversified PortfolioInvest in many different assets and securities that typically have higher returns and reduced overall risks on investments.



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