Vocabulary Flashcards
(24 cards)
IPO
Initial primary offering of a company’s stocks,used when company goes public, its in primary Market, raises capital.
Security and financial commission? SEC
Companies must report financial info, can use for research.
Public company
Can be owned by millions, listed on stock exchange, anyone can buy stake or stocks and be a shareholder.
Secondary market
Primary Market
Tick or tiker
Electric board shows change in stock, green up, red down, gray stock stays the same.
Equity
Debit
Equity company offers shares for money
Debit company barrows money.
Capital gain
Stock increases in value from original price.
Buy at 100 then goes up to 130
Large cap
Mid cap
Small cap
L cap less vulnerable company
S cap company more vulnerable but more growth
Common stock
Preferred stock
Stock class
Healthy portfolio
Having a collection of stocks that have different sectors and industries
Sector
Industries
Sector stocks
Cyclical stocks
Stocks people need,health care or supermarkets
Require a strong economy, travel, luxury goods
Dividends or DPS or dividend per %
An amount of the company’s profit that the company pays to people who own stocks in the company. Company distributes part of its earnings.
Market Capitalization
Companies to value according to there stocks
Market forces or supply and demand
Demand buy stocks
Supply sell stocks
Share buy backs
When a company buys back irs own shares and can be highly profitable
Slow grower
Company grows slightly slower GPD around 2% large Company
Stalwarts
Large company growth 10 to 12%
Fast grower
Small aggressive company growth around 20 to 25%
Cyclicals
Growth depends on economy
Turn arouns
Company performed poorly and are picking up
Asset play
Company that is valuable because of its assets
Things to look for in a Comany
- Things you understand and comprehend
- Patents
- Good review and growth
- Great management
- High quality product
- Advantages to competitors
- Innovative new ideas
- Low margins doesn’t cost alot.
- Look at products people use, students, teachers, construction, prisons.
- New trends