Stock Market vocab JA

Question 1

publicly owned

Answer 1

A company that sells stock. A company that is owned by stockholders and shareholders.

Question 2

private company

Answer 2

A company that doesn’t sell/trade stock. A company owned by an individual or a small group of individuals.

Question 3

stockholder

Answer 3

an individual who has purchased a share, many shares, of stock in a publicly owned company.

Question 4

bear market

Answer 4

a market that describes the downward trend of the stock market over a number of months

Question 5

Stock broker

Answer 5

acts as a go-between for the buyer and seller of stocks. The person or firm that sells/buys stocks on behalf of a client.

Question 6

Bull market

Answer 6

A market that describes the trend of the stock market rising over a number of months.

Question 7

diversification

Answer 7

The strategy of owning different stocks in various industries that perform differently under a variety of economic conditions. In other words, owning stocks of multiple industries to build a better portfolio

Question 8

dividends

Answer 8

The percentage of profits that are paid to stockholders periodically

Question 9

risk

Answer 9

the probability of making a profit or losing money on an investment

Question 10

stock

Answer 10

is a share of the ownership of a company

Question 11

stock market

Answer 11

where stocks are bought and sold

Question 12

portfolio

Answer 12

a grouping of financial assets such as stocks, bonds, and cash equivalents.

Question 13

sole proprietorship

Answer 13

a business owned by one person

Question 14

partnership

Answer 14

a business owned by two or more people

Question 15

discretionary income

Answer 15

income remaining after taxes and bills. play money

Question 16

investing

Answer 16

putting money into something that might make you more money

Question 17

mutual fund

Answer 17

a company that pools money from many investors and invests the money into bonds, stocks, and short term debt

Question 18

risk tolerance

Answer 18

His or her comfort with risk. The amount of risk they are willing to put up with.

Question 19

Initial public offering (IPO)

Answer 19

the first time a company offers its shares to the public

Question 20

supply

Answer 20

the number of stocks able to be sold.

Question 21

demand

Answer 21

how much people want to buy it

Question 22

bid

Answer 22

the highest amount a buyer is willing to pay for a stock

Question 23

ask

Answer 23

the lowest amount a seller is willing to sell a stock

Question 24

black swan event

Answer 24

rare, unexpected event often with negative consequences.

Question 25

Hawks

Answer 25

Want a high interest rate to restrict the flow of money. They want to keep inflation low.

Question 26

doves

Answer 26

want a low interest rate to stimulate economy and keep unemployment low.

Question 27

turtles

Answer 27

learns the rules of one specific industry and stick with it

Question 28

pigeons

Answer 28

centrists. Favor a middle ground where interest rate is in check while money continues to flow in economy.

Question 29

sheep investors

Answer 29

follow the crowd, don't make too radical decisions.

Question 30

pig investors

Answer 30

very greedy and fixated on short-term gains

Question 31

dead cat bounce

Answer 31

When the stock value drops sharply and quickly, then experiences a minor or brief rally or rise in value, and then loses whatever small gain it made and falls even further

Question 32

stock index/average

Answer 32

the arithmetic average price of a group of stocks

Question 33

market capitalization

Answer 33

the total value of a company's shares of stock. The company's worth on the open market.

Question 34

blue-chip company

Answer 34

a reliable/valuable company on the market.

Question 35

stock table

Answer 35

a chart/table that tells you info on a company's stock

Question 36

yield

Answer 36

profit that an investor will make from stock/bond

Question 37

price to earnings (P/E) ratio

Answer 37

current stock price to per share earnings.

Question 38

net income

Answer 38

earnings after all bills paid

Question 39

earnings per share

Answer 39

how much a company makes for each share of stock it issues.

Question 40

propectus

Answer 40

an annual report that contains a company's financial statements and data going back five years.

Question 41

audited

Answer 41

checked for accuracy by independent third party.