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26 Cards in this Set
- Front
- Back
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AMEX
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American Stock Exchange. in NYC, sells memberships (or seats) so brokers can trade stocks
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broker
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a professional trader who buys or sells stocks for individuals and institutional customers
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buying on margin
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buying stock by paying a percentage of the purchase price (typically 50%) and borrowing the balance from a broker.
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capital gain
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a profit realized from the sale of property, stocks, other investments
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commission
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a % of a stock trade paid to a stockbroker
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common stock
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an ownership of share(s) in a corporation. a common stock offers no guarantee that it will hold its value or pay dividends.
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dealer
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someone who buys/sells stocks from his own account of the firm he works for. some dealers are also brokers
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dividend
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a share of a company's net profits paid to shareholders
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dow jones industrial average (DJIA)
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aka "dow"....most commonly known stock-market indicator. DJA is an index of 30 industrial companies traded on the NYSE
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growth stock
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a stock that often pays no dividend, but the stockholder gains if the price of the stock increases
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income stock
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pays dividends regularly
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institutional investor
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an organization that invests in the stock market
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investment banker
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a financial firm that agrees to underwrite a new issues of stocks or bonds and sell them to its best customers
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mutual fund
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a company that pools money from investors and uses it to buy stocks, bonds, ect on the investors' behalf
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NASDAQ
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electronic marketplace
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NYSE
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oldest stock exchange in US founded 1792
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Odd Lot
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shares of stocks less than 100
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over-the-counter market (OTC)
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network of dealers connected by comps. no centralized trading floor. the stocks often represent new, start-up companies....~low prices
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preferred stock
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an ownership share in a corporation with a guaranteed dividend that is paid before dividends paid on common stock
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round lot
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purchase of a stock in multiples of 100
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selling short
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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
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S & P 500
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standard and poor's 500 stock index. includes 500 stocks sand it is important to large-stock investors.
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stock
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an ownership share(s) of a ownership on a corporation
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stock certificate
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an official document certifying that a person in an owner of a stock
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stockholder
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stock owner aka share holder
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stock split
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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
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