Great Depression Vocab

Question 1

corporation

Answer 1

a publicly-owned company by shareholders through stock

Question 2

stock

Answer 2

a small piece or pieces of a corporation

Question 3

CD

Answer 3

Certificate of Deposit: time deposit savings

• safer (guaranteed)
• bank

Question 4

mutual fund

Answer 4

multiple stocks in a fund

• one share of stock is divided among corporations
• safer stock investment
• eggs are not in one basket

Question 5

IRA

Answer 5

Individual Retirement Account

Question 6

IPO

Answer 6

Initial Public Offering- when a corporation sells stock for the first time

Question 7

stock split

Answer 7

when a company splits its stock (ie two for one) to make it more affordable for shareholders in order to sell more shares

Question 8

dividends

Answer 8

profit sharing paid by companies to the people who own stock

Question 9

Dow Jones Industrial Average

Answer 9

the average of 30 significant stocks

-snapshot of market

Question 10

New York Stock Exchange

Answer 10

the oldest, biggest market to buy stock

Question 11

NASDAQ

Answer 11

the second largest American stock exchange

-newest- technology

Question 12

portfolio

Answer 12

all of investments

Question 13

margin

Answer 13

borrow money to buy stock

Question 14

Securities and Exchange Commission

Answer 14

gov. organization that watches the stock market to make sure no one is cheating or forming monopolies

Question 15

bonds

Answer 15

loan from government

• safer than stocks
• %
• over time

Question 16

S&P 500

Answer 16

Standard and Poor’s

snapshot of how much 500 shares are worth in both of the stock markets (NY and NASDAQ)