Chapter 8 Terms Flashcards Preview

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Flashcards in Chapter 8 Terms Deck (21):
1

shares or portions of ownership in a corporation

Stock

2

the most prevalent type of stock that companies offer, represents true ownership of the firm

Common stock

3

a distribution of a portion of the corporation’s profits

Dividends

4

stock that carries less risk of loss because preferred shareholders have claim to the company’s assets before the common shareholders if business losses force the corporation to close

Preferred stock

5

a person who generally works for a brokerage company and who specializes in buying and selling stocks on behalf of his clients

Stock broker

6

the fee paid for a stockbroker’s services

Commission

7

stock traders physically present on the trad­ing floor to execute requested trades

Floor trades

8

an electronic message board used to indicate stock prices and transactions

Tape

9

the initial sale of a company’s stock through an investment bank

Initial public offering (IPO)

10

a location at which stock is traded

Stock exchange

11

the most well-known and reputable stock market in the world

New York Stock Exchange (NYSE)

12

the National Association of Securities Dealers Automated Quotations, the largest exchange that does not have a trading floor

NASDAQ

13

a lesser-known but still reputable American stock market

American Stock Exchange (Amex)

14

a group of stocks that analysts use to help identify stock trends in specific industries

Stock index

15

the most well-known American stock index

Dow Jones Industrial Average (DJIA)

16

a commonly reported investment index that includes five hundred stocks and is intended to give an even broader perspective on business in the United States than the DJIA

Standard and Poor’s 500 (S&P 500)

17

privately managed stock portfolios

Mutual funds

18

a collection of stocks from different individual corporations

Stock portfolio

19

actively buying and selling stocks for the purpose of taking advantage of short-term price changes

Speculation

20

stock prices rising in an industry or across the entire market simply because of expectations and rising in excess of the corporations’ true value

Speculative bubble

21

a govern­mental agency founded to ensure that corporations pro­vide accurate and current information to the public about their financial situations and their business dealings

Securities and Exchange Commission (SEC)