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11 Cards in this Set
- Front
- Back
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5 popular investment Types: |
1. Stocks 2. Bonds 3. Mutual Funds 4. Exchange-Traded Funds 5. Certificates of Deposit |
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A type of security that signifies ownership in a corporation and represents a claim on part of that corporations assets and earnings. |
Stock |
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Shares of stock represent company _______, the value of an asset less the amount of liabilities on that asset. Assets - Liability = |
Equity |
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The value of a company that is traded on the stock market, calculated by multiplying Total # Shares x Present Share Price |
Market Capitalization (Market Cap) |
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Typically, Stock prices tend to rise when: (2) |
1. Buyers outnumber sellers 2. Products become scarce and demand increases. |
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An excess of shares, and a dearth of buyers leads to ________. |
Falling prices |
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Not all stocks behave the same way, which means they can play different roles in your portfolio.
6 classifications every stock investor should understand: |
1. Value Stocks 2. Growth Stocks 3. Large-Capitalization Stocks 4. Small-Capitalization Stocks 5. U.S. Stocks 6. Foreign Stocks |
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Companies that trade at a discount relative to their earnings or some other operating statistic. Shares of a company with solid fundamentals that are priced below those of its peers, based on analysis of price/earnings ratio, yield, and other factors. |
Value Stocks |
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A company stock that tends to increase in value rather than yield a high income. Stocks with above-market increase in sales or profits tend to outperform their peers. These stocks tend to cost more (higher price/earnings ratios, etc) than other stocks, as many investors will pay a premium. |
Growth Stock |
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Investors who purchase ________ receive returns from future capital appreciation (diff btw amount PAID for a stock and Its CURRENT VALUE), rather than dividends. Whereas, ________ are those that tend to trade at a lower price relative to their fundamentals (including dividends, earnings, and sales. |
*Growth Stocks *Value Stocks |
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Refers to a company with a market capitalization value of more than $10 Billion |
Large-Capitalization Stock |
