Chapter 9 Flashcards Preview

Personal Finance > Chapter 9 > Flashcards

Flashcards in Chapter 9 Deck (22)
Loading flashcards...
0
Q

A company that issues stock to a small group of people

A

Private corporation (closely held corporation)

1
Q

All the investments, stocks, bonds, mutual funds, options, and commodities that are bought and sold on the stock market

A

Securities

2
Q

A corporation that sells its shares openly in stock markets, where anybody can open them

A

Public corporation

3
Q

An assigned dollar value that is printed on a stock certificate

A

Par value

4
Q

A safe investment that generally attracts conservative investors

A

Blue chip stock

5
Q

Higher than average dividends compared to other stocks

A

Income stock

6
Q

Issued by a corporation whose potential earnings may be higher than the average earning predicted for all the corporations in the country

A

Growth stock

7
Q

A market value that tends to reflect the state of the economy

A

Cyclical stock

8
Q

A stock that remains stable during declines in the economy

A

Defensive stock

9
Q

Stock from a corporation that has issued a large number of shares of stock and has large amounts of capitalization

A

Large cap stock

10
Q

The total amount of stocks and bonds issued by a corporation

A

Capitalization

11
Q

A stock issues by a company with a capitalization of 500 million dollars or less

A

Small cap stock

12
Q

A stock that typically sells for less than a dollar a share, although it can sell up to as much as $10 a share

A

Penny stock

13
Q

A market condition that occurs when investors are optimistic about the economy and buy stocks

A

Bull market

14
Q

A market condition that occurs when investors are pessimistic about the economy and sell stocks

A

Bear market

15
Q

The annual dividend of an investment divided by the current market value

A

Current yield

16
Q

A calculation that includes the annual dividend as well as any increase or decrease in the original purchase price of the investment

A

Total return

17
Q

A corporation’s net, or after tax, earnings divided by the number of outstanding shares of common stock

A

Earnings per share

18
Q

The price of one share of stock divided by the corporation’s earnings per share of stock over that last 12 months

A

Price earning ratio (PE)

19
Q

A marketplace where brokers who represent investors meet to buy and sell securities

A

Securities exchange

20
Q

A network of dealers who buy and sell stocks of corporations that are not listed on a securities exchange

A

Over the counter market (OTC)

21
Q

A collection of all the securities held by an investor

A

Portfolio