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36 Cards in this Set
- Front
- Back
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what is a proxy?
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A legal form that
lists the issues to be decided at a stockholders’ meeting and requests that stockholders transfer their voting rights to some indi- vidual or individuals. |
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what is the record date ?
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The date
on which a stockholder must be registered on the corporation’s books in order to receive dividend payments. |
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what is a ex-dividend?
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A situa-
tion when a stock trades “without dividend,” and the seller—not the buyer—is entitled to a declared dividend payment. |
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what is a stock split?
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A procedure in
which the shares of stock owned by existing stock- holders are divided into a larger number of shares. |
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what is par value?
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An assigned
(and often arbitrary) dol- lar value that is printed on a stock certificate. |
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what is earnings per share?
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A
corporation’s after-tax income divided by the number of outstanding shares of a firm’s common stock. |
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what is the price-earnings ratio?
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The
price of a share of stock divided by the corpora- tion’s earnings per share of stock |
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what is a dividend payout?
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The per-centage of a firm’s earn-ings paid to stockholders in cash.
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what is a dividend yield?
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The
annual dollar amount of income generated by an investment divided by the investment’s current market value. |
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what is a total return?
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A calculation
that includes the annual dollar amount of income as well as any increase or decrease in the original purchase price of the investment. |
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annualized holding period
yield |
A yield calculation
that takes into account the total return, the original investment, and the time the investment is held. |
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what is beta ?
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A measure that
compares the volatility associated with a specific stock issue with the vola- tility of the Standard & Poor’s 500 Stock Index |
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how is book value Determined?
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by deducting all liabilities
from the corporation’s assets and dividing the remainder by the number of outstanding shares of common stock. |
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what is the market-to-book ratio?
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The
current market value of one share of stock divided by the book value for one share of stock. |
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what is the fundamental analysis ?
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An
investment practice based on the assumption that a stock’s intrinsic or real value is determined by the company’s future earnings. |
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whats technical analysis ?
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An
investment practice based on the assumption that a stock’s market value is determined by the forces of supply and demand in the stock market as a whole. |
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whats the efficient market hypothesis ?
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(EMH) An invest-
ment theory based on the assumption that stock price movements are purely random. |
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what is the primary market?
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A market
in which an investor pur- chases financial securities, via an investment bank or other representative, from the issuer of those securities. |
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whats a investment bank?
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A finan-
cial firm that assists cor- porations in raising funds, usually by helping to sell new security issues |
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whats a Initial public offering?
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(IPO) Occurs when a
corporation sells stock to the general public for the first time. |
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whats a secondary market?
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A market for existing financial
securities that are currently traded among investors. |
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what is a securities exchange?
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A
marketplace where mem- ber brokers who represent investors meet to buy and sell securities. |
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what is a specialist ?
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Buys or sells
a particular stock in an effort to maintain an orderly market. |
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what is a over-the-counter (OTC)
market? |
A network of
dealers who buy and sell the stocks of corporations that are not listed on a securities exchange |
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what is the Nasdaq?
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An electronic
marketplace for approxi- mately 3,200 different stocks. |
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what is a account executive?
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A
licensed individual who buys or sells securities for clients; also called a stockbroker. |
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what is a market order
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A request to
buy or sell a stock at the current market value. |
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what is a limit order?
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A request to
buy or sell a stock at a specified price. |
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what is a stop order?
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An order to
sell a particular stock at the next available oppor- tunity after its market price reaches a specified amount. |
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what is dollar cost averaging?
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A
long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals. |
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what is a direct investment plan?
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A
plan that allows stock- holders to purchase stock directly from a corpora- tion without having to use an account executive or a brokerage firm. |
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what is a dividend reinvestment
plan? |
A plan that allows
current stockholders the option to reinvest or use their cash dividends to purchase stock of the corporation. |
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what is a day trader?
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An individual
who buys and then later sells stocks and other securities in a very short period of time. |
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what is a margin ?
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A speculative
technique whereby an investor borrows part of the money needed to buy a particular stock. |
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what is a selling short ?
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Selling stock
that has been borrowed from a brokerage firm and must be replaced at a later date |
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what is a option?
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The right to buy
or sell a stock at a prede- termined price during a specified period of time. |
