Glossary
There
are so many stock terms out there and we couldn't list all of them here.
We are
just listing a few you may have heard and some basic ones to get you started.
American
Stock Exchange
A place where stocks and bonds
are bought and sold. An association of stockbrokers.
Bear
Market
A time when prices in
the market are generally declining. A lot of stocks are sold in this
kind of market.
Bond-
A bond is like an IOU. A corporation
or the government let's you buy it's bonds and they sign a contract that
at the end of the year or any given time they will give you back the money
you invested plus interest on that money.
Brokerage
The business of a broker.
A broker's fee.
Broker
Brokers buy and sell stocks
for their customers.
Bullish
Generally a period of time
in which prices for stocks are on the rise. A lot of stocks
are bought in this kind of market.
Compounded
Interested
How
your investments multiply over a period of time.
Dividends
The money or profits the company
gives the stock holder.
Dow
Jones Industrial Average
The Dow is composed of thirty
major stocks divided by the price of each stock to give you an average
of how the market is doing. The Dow Jones Industrial Average includes 30
stocks.
Earnings
The money that a company earns
(profits) at the end of the year
Finance
The science of managing money.
High
Yield
When
a stock or bond can give you a high percentage back on your investment.
Investor
A person
who owns stock in a company is called an investor.
Market
The word used to describe
the buying or selling in the stock market.
Nasdaq
The Nasdaq is the stock exchange
that sells a lot of smaller company's stock and a lot of the technology
company's stocks.
New
York Stock Exchange
The
New York Stock Exchange is a marketplace in which it has 3,100 stocks.
It is where stock brokers buy and sell stocks. It is located in New York
City.
Principal
The
initial money you invest in a stock.
Split
When a company wants to get
more people to invest in their stocks, they offer more stocks to be sold.
They offer two for one to current stock holders.
Stock
A way for business to collect
money from investors to expand their company. Investors get
shares of stock (Fancy Paper) that tells you, you own part of the company.
StockBroker
A person who has a license
to sell stocks.
Stock
Holder
Someone who owns at least
one share or (stock) of a company is a stock holder.
Trade
When
brokers are selling or buying stocks.
Trend
A trend in the market means
that the stock is getting popular or it is losing it's popularity.
Yield
What a stock will pay to its
investors. Yield is the stock price divided by the dividends per share.