| A | B |
|---|
| Economize | To base decisions on an assessment of costs and benefits, choosing the best combination of costs and benefits among the alternatives. |
| Risk | The chance of losing money. Risk is the opposite of safety. |
| Saving | Setting aside some of today’s income for future spending. |
| Stock Market | A market in which the public trades stocks it already owns. |
| Corporation | A business that is owned by stock holders and is entitled legally to rights and responsibilities as if it were a person. |
| Limited Liability | A legal guarantee that a stockholder’s maximum loss is legally limited to the amount he or she has invested in a corporation’s stock. |
| Partnership | A business that is owned and managed by two or more individuals who receive all profits and bear all losses. |
| Sole Proprietorship | A business that is owned and managed by one individual who receives all the profits and bears all losses. |
| Competition | The rival efforts of two or more people or businesses acting independently to get the business of others by offering a better price or higher level of quality in goods or services. |
| Demand | The different quantities of a resource, good, or service that will be purchased at various possible prices during a specific time period. |
| Market | The process through which buyers and sellers exchange with each other. |
| Profit | The difference between revenues and the costs entailed in producing or selling a good or a service; it is a return for risk-taking. |
| Stock | A share of ownership in a company. Owners of stock receive part of the company’s profits-or bear some of its losses-up to the amount of money they put into the stock. |
| Resources | The land, labor, capital, and entrepreneurship required to produce goods and services that people want. |
| Supply | The different quantities of a resource, good, service that will be offered for sale at various prices during a specific time period. |
| Voluntary Exchange | A trade or transaction between a willing buyer and a willing seller. |
| American Stock Exchange | AMEX-The American Stock Exchange, which is one of the organized stock markets in New York. |
| Bid Price | The price the buyers are willing to pay for a particular stock at a given time. |
| Limit Order | An order to buy or sell a stock at a certain(or better) price. |
| NASDAQ | An electronic marketplace where buyers and sellers get together via computer and hundreds of thousands of miles of high-speed data lines. |
| NYSE | The New York Stock Exchange, which is one of the organized stock markets in New York City. |
| Stockbroker | A broker who accepts orders to buy and sell stock and then transfers those orders to other people who complete them. |
| Broker | An individual or business that specializes in bringing together buyers and sellers of stocks. |
| Commission | The fee a broker and /or stockbroker collects for helping people buy and sell a stock. |
| Stock Exchange | One of the organized stock markets with a centralized trading floor. It is located in New York City. |
| Gain | An increase above the original purchase price in the money received from the sale of a stock. |
| Loss | A decrease from the original purchase price in the money received from the sale of a stock. |
| Dividend | Payments made by a corporation to its shareholder members. |
| Round Lot | A group of 100 shares of a stock, or any group of shares that can be evenly divided by 100. |
| Odd Lot | A group of stocks in less than the standard 100 shares. |
| IPO | Initial public offering (IPO) or stock market launch, is the first sale of stock by a private company to the public. |
| Short Sale | Selling securities that you do not own. Investors will short-stocks when they believe a stock's market price is going to decline. The process of short selling involves borrowing stock from a brokerage house to sell in the stock market. At a future date, you repurchase the borrowed stock and that step in the process is referred to as a "short cover." |
