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26 Cards in this Set

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AMEX
American Stock Exchange. in NYC, sells memberships (or seats) so brokers can trade stocks
broker
a professional trader who buys or sells stocks for individuals and institutional customers
buying on margin
buying stock by paying a percentage of the purchase price (typically 50%) and borrowing the balance from a broker.
capital gain
a profit realized from the sale of property, stocks, other investments
commission
a % of a stock trade paid to a stockbroker
common stock
an ownership of share(s) in a corporation. a common stock offers no guarantee that it will hold its value or pay dividends.
dealer
someone who buys/sells stocks from his own account of the firm he works for. some dealers are also brokers
dividend
a share of a company's net profits paid to shareholders
dow jones industrial average (DJIA)
aka "dow"....most commonly known stock-market indicator. DJA is an index of 30 industrial companies traded on the NYSE
growth stock
a stock that often pays no dividend, but the stockholder gains if the price of the stock increases
income stock
pays dividends regularly
institutional investor
an organization that invests in the stock market
investment banker
a financial firm that agrees to underwrite a new issues of stocks or bonds and sell them to its best customers
mutual fund
a company that pools money from investors and uses it to buy stocks, bonds, ect on the investors' behalf
NASDAQ
electronic marketplace
NYSE
oldest stock exchange in US founded 1792
Odd Lot
shares of stocks less than 100
over-the-counter market (OTC)
network of dealers connected by comps. no centralized trading floor. the stocks often represent new, start-up companies....~low prices
preferred stock
an ownership share in a corporation with a guaranteed dividend that is paid before dividends paid on common stock
round lot
purchase of a stock in multiples of 100
selling short
the buyer borrows shares he does not own from a broker. the buyer has the shares sold and takes the $$. the buyer then waits for the price to fall, the buyer buys the shares at the lower price....gains profit. if in increases, buyer loses money
S & P 500
standard and poor's 500 stock index. includes 500 stocks sand it is important to large-stock investors.
stock
an ownership share(s) of a ownership on a corporation
stock certificate
an official document certifying that a person in an owner of a stock
stockholder
stock owner aka share holder
stock split
the division of an outstanding number of shares into a higher number of shares. often occurs when the price of a stock is considered too high by a corp