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18 Cards in this Set
- Front
- Back
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Investor/Stockholder/Shareholder/Shareowner
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a person who buys stock in a corporation, and therefore becomes a part owner of the corporation
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Publically held corporation
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a company that allows anyone in the public to purchase shares of its stock
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stockbroker
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a person licensed to place orders for stocks to be bought and sold
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floor broker
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take orders from stockbrokers and report back when the purchase or sale is made
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Dow Jones Industrial Average
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a market indicator that averages 30 of the largest and most widely owned stocks. Used as a loose gauge of how well the market is doing
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going public
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when a company puts its stocks up for sale for the first time
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ipo
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Initial Public Offering- the formal name for going public
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SEC- Securities and Exchange Commission
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The U.S. govt. regulatory agency responsible for stock (securities) trading. Rules for companies, stockbrokers, floor brokers and individual and corporate shareowners
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Financial Accounting Standards Board (FASB)
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spells out requirements for proper financial disclosure
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dividends
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a percentage of profits shared with shareowners- paid quarterly, they are paid “per share of stock”
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bonds
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purchased by investors at a fixed interest rate to be paid back by the company, it’s a form of financing used by corporations and bought and sold through stockbrokers
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stock analysts
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studies the financial performance of a company and makes predictions and recommendations. It’s influenced by information shared by the company and its competitors
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sarbanes-oxley act
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a public company accounting reform and investor protection act. It was passed in response to high-profile business failures, such as Enron, in order to reinforce investment confidence and protect investors by improving the accuracy and reliability of corporate disclosure.
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material news
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news is released using third party companies to ensure the masses are reached, this is usually done before the market opens or after it closed and is followed by conference calls.
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annual report to shareholders
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includes the company’s financial reports
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securities analysts
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advises investors on how and where to invest, publishes reports on their findings, and suggests when to buy, sell, or hold.
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"sell-side" analysts
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makes recommendations to brokerage firms’ customers to lead to a profitable sale and predicts company’s financial performance.
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"buy-side" analysts
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advise investing institutions such as mutual funds, pension funds and insurance firms- buy large portions of securities for money- management purposes
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