Stock Flashcards
Corporations can raise funds by issuing _____ which is ownership in the corporations.
stock
Stock is issued in portions known as ______.
shares
By selling shares of stock, corporations raise money to ____, ______, and ______ their business.
start, run, and expand
Stock are also called ______.
Equities
What are the two ways for stock holders to make a profit?
Through dividends and capital gains
Dividends are ________. They are paid __ times a year.The ____ the profit, the ____ the dividend per share of stock.
part of the firm’s profits/ four/ higher and larger
Capital gains are __________.
The difference between a higher selling price and a lower purchase price which results in a financial gain for the seller.
Capital loss is ?
The difference between lower selling price and a higher purchase price which results in a financial loss for the seller.
Common Stock
Those who buy this become voting members of the company. They receive one vote per share. Votes are used to elect the company’s board of directors.
Stock Split
each single share of stock splits into more than one share; When the price of the stock increases, it discourages potential investors from buying it.
Preferred Stock
Those who buy are non-voting members of the company. They receive dividends before the common stock owners.
Bull Market
a steady rise in the Stock Market over a period of time
Investors expect increase in profits.
Bear Market
a steady drop in the Stock Market over a period of time. Investors sell in expectation of lower profits.
