Stocks Flashcards

0
Q

Change

A

Difference between yesterday’s closing price and the last

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1
Q

Last

A

Current trading price of one share

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2
Q

Volume

A

Total number of shares that have been traded on the most recent trading day

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3
Q

Day high

A

Highest price of stock during current days trading

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4
Q

Day low

A

Lowest price of stock during current days trading

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5
Q

Open

A

Price paid in the stocks first transaction of the day

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6
Q

Previous close

A

Price of the stock at the end of yesterday’s trading

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7
Q

Bid

A

Price of which someone is willing to pay for a stock

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8
Q

Ask

A

Price that a holder is willing to sell for

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9
Q

52 week high

A

Highest price for an individual share of a stock in the past year

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10
Q

52 week low

A

Lowest price paid for a share within last year

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11
Q

P/E

A

Closing price divided by latest 12 months earnings per share

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12
Q

Earnings/share

A

Total earnings divided by number of stocks issued

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13
Q

Dividend

A

Cash payment per share made by company to the shareholders

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14
Q

Current dividend yield

A

Yield on a given investment based on its current price

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15
Q

Shares outstanding

A

Number of shares that have been issued to the public

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16
Q

Exchange

A

Organization that provides a marketplace for the trading of a listed stock

NYSE
Nasdaq

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17
Q

Underwriter

A

Sets starting price

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18
Q

Stockholders

A

Own a piece of the corporation

19
Q

Capital gain

A

Increase in value or stock

20
Q

Capital loss

A

Price goes down and you lose money

21
Q

Common stocks

A

Varied dividend
Board of directors decides if a dividend will be paid
Voting rights

22
Q

Preferred stocks

A

Fixed dividend paid at regular intervals (May be less)
Paid before common stockholders if corp fails
No voting rights

23
Q

Income stocks

A

Consistent high dividends

Very strong and stable

24
Q

Growth stocks

A

Reinvest profits from stocks into corporation
Little or no dividend
Long term

25
Q

Less established stocks

A

Young and small corporations

Inexpensive and risky

26
Q

Blue chip stocks

A

Large and well established corporations
Market leader in its sector
Safe with moderate returns

27
Q

Defensive stocks

A

Remains stable and pays dividend during bad economy

28
Q

Cyclical stocks

A

Do well when economy is stable

Do portly in recessions

29
Q

Par value

A

Assigned dollar value printed on stock certificate

30
Q

Market value

A

Price investors are willing to pay
Undervalued-stock worth more than selling price (good for investors)
Overvalued-stock worth more than potential(risky)

31
Q

Stock price determined by…

A
  • Earning power (making a profit) & debt
  • interest rates (when interest is higher than inflation, people buy stock
  • demand (high demand=profit)
  • earnings per share (measure of profitably)
  • price to earnings ratio (measure of value)
  • return on investment (capital gain)
32
Q

Securities exchange

A

Marketplace where brokers representing investors meet to buy and sell stocks
-NYSE, AMEX

33
Q

Over the counter

A

Network of brokers who buy and sell securities that are not listed on securities exchange

34
Q

Bull market

A

Prices are rising or expected to rise

35
Q

Bear market

A

Prices are falling

36
Q

Buy on margin

A

Borrow money from broker, invest in stocks

Pay back money plus fees

37
Q

Short selling

A

Selling stock borrowed from a broker and buy back later at a cheaper price

38
Q

Buy and hold

A

Hold stocks for many years and try to earn dividends

39
Q

Stock split

A

Corporations increase shares outstanding

40
Q

Dollar cost averaging

A

Systematic purchase of an equal dollar amount of the same stock at regular intervals

41
Q

Direct investment

A

Buy direct from corporation to avoid brokerage fees and buy at a lower price

42
Q

Reinvesting dividends

A

Use dividends to purchase more stock avoiding brokerage fees

43
Q

Stock indexes

A

Benchmark used to judge the performance of your investment (Dow jones, standard and poor, Nasdaq composite)

44
Q

Stock portfolio

A

Collection of stock holdings

45
Q

Ticker symbol

A

Abbreviated stock name

46
Q

DRIP

A

Dividend reinvestment plan- buy direct from company