Investment Lingo 5 Flashcards
(23 cards)
Risk tolerance
Risk investor is comfortable with
Risk capacity
Risk investor can take based on their financial situation
Russel 2000 is a
Stock Market index
Russel 2000 index tracks performance of
2000 small-cap stocks
Russel 3000 made up of
Small,mid,large-cap stocks
Russel 2000 is made up of most
Of the stock market
Russel 2000 represents a portion of
Russel 3000
Small-cap companies may experience
Larger growth that large-cap companies
The more shares you purchase
The greater ownership you have in that company
One who owns shares can vote
On shareholder elections
Stock holder AKA
Shareholder
Stockholders are also
Owners of the company
Stock market is made up of
All publicly-traded stocks available for sale
Stock Market is made up of _ sectors
11
Example of 2 sectors
Healthcare
Information technology
Stock split
Company splits each of its shares into 2 or more separate shares
2 for 1 stock split for stock worth $100 per share
2 shares each worth $50
Companies use stock splits as their stock prices rise to
Make shares more accessible to individual investors
YTD stands for
Year-to-date
YTD is often used to describe
Investment returns
YTD returns are calculated based on
Profit since first day of the year
S&P 500 is capitalization weighted, meaning
Companies with higher caps make up larger percentage of index
Volatility is a measure of
Change in asset prices over a period of time
