Final (Ch. 7) Flashcards
1
Q
Dividend Yield
A
- A stock’s expected cash dividend divided by its current price
2
Q
Capital Gains Yield
A
- The dividend growth rate, or the rate at which the value of an investment grows
3
Q
Common Stock
A
- Equity without priority for dividends or in bankruptcy
4
Q
Cumulative Voting
A
- A procedure in which a shareholder may cast all votes for one member of the board of directors
5
Q
Straight Voting
A
- A procedure in which a shareholder may cast all votes for each member of the board of directors
6
Q
Proxy
A
- A grant of authority by a shareholder allowing another individual to vote his/her shares
7
Q
Dividend
A
- Payments by a corporation to shareholders, made in either cash or stock
8
Q
Preferred Stock
A
- Stock with dividend priority over common stock, normally with a fixed dividend rate, sometimes without voting rights
9
Q
Primary Market
A
- The market in which new securities are originally sold to investors
10
Q
Secondary Market
A
- The market in which previously issued securities are traded among investors
11
Q
Dealer
A
- An agent who buys and sells securities from inventory
12
Q
Broker
A
- An agent who arranges security transactions among investors
13
Q
Member
A
- Owner of a trading license on the NYSE
14
Q
Designated Market Makers (DMM)
A
- NYSE members who act as dealers in particular stocks, Formally know as specialists
15
Q
Floor Brokers
A
- NYSE members who execute customer buy and sell orders
16
Q
Supplemental Liquidity Providers (SLP)
A
- Investment firms that are active participants in stocks assigned to them. Their job is to make a one-sided market. Trade for their on accounts
17
Q
Order Flow
A
- The flow of customer orders to buy and sell securities
18
Q
DMM’s Post
A
- A fixed place on the exchange floor where the DMM operates
19
Q
Inside Quotes
A
- The highest bid quotes and the lowest ask quotes for a security
20
Q
Electric Communications Networks (ECN’s)
A
- Websites that allow investors to trade directly with one another
