Stocks Flashcards
(25 cards)
Dividend
Company payout some of its profits to its owners
Stock basics
Investing for more money
What format stocks sold and bought
Auction format
Price
Is what people would pay
Where are stocks sold and bought
The stock exchange
Tsx, nyse, Nasdaq
Toronto stock exchange, New York stock exchange, high tech stocks
Last trade
Most recent trade and current price
Market cap
Value of all shares outstanding
Index
Collection of stock from a number of different industries that give a good representation of what stock exchanges are doing
Index
S&p
Dow Jones
Portfolio
Combination of investments that a company holds
Blue chip stock
Well established stable stock
Low risk and low reward
Penny stock
Very cheap stocks
High risk high return
Diversification
Spreading your investment to a number of different types of companies
Bull market
Increasing in value
Bear market
Market is decreasing
iPo
Initial public offering - first sake of stock of a new company
Stock split
Company increases the shares by splitting the shares and lowering the price
A two for one split
The number of shares doubles but the price of each share is cut in half
Stock split value
Does not change value of investment or voting rights
3:1 split
100 shares at 90= 9000
Now own 300 at 30=9000
Can money b made by stock dropping
Yes, short selling
Short sell
- Barrow shares
- Sell those
- Wait for price drop
- Buy back and return shares
- Keep profit
Short selling money making
Make money if price drop loose money if it go up
