Finance Chapter 12

Front 1

Corporation

Back 1

a public ___ issues stock that may be traded openly on the stock markets over the counter

Front 2

Dividends

Back 2

when a company is profitable the stock holders often receive a distribution of money called ____

Front 3

board of directors

Back 3

common stockholders vote for members of the _____

Front 4

stock slip

Back 4

an increase in the number of outstanding shares of a stock

Front 5

dividend reinvestment

Back 5

using dividends previously earned on stock to buy more shares

Front 6

income

Back 6

stocks that pay high dividends over time

Front 7

growth

Back 7

stocks in companies that reinvest profits, rather than pay dividends, are called ____ stocks

Front 8

stock index

Back 8

a benchmark that stock investors use to judge investment performance

Front 9

blue chip

Back 9

stocks of large, well-established companies are called ____ stocks

Front 10

defensive

Back 10

a stock that remains stable during an economic decline

Front 11

cyclical

Back 11

stocks that do well in good economy, poor in a bad one

Front 12

par value

Back 12

an assigned dollar value printed on a stock certificate

Front 13

market

Back 13

when you buy stock, you pay _____ value

Front 14

earnings per share

Back 14

a corporations after tax earnings divided by the number of common stock shares is _____

Front 15

bull

Back 15

a ___ market with rising stock prices & optimism

Front 16

bear

Back 16

a ____ market with selling of stocks & pessimism

Front 17

securities of exchange

Back 17

a marketplace where brokers buy and sell securities

Front 18

stock holders

Back 18

stocks are bought & sold by ____

Front 19

Auction

Back 19

stock exchanges are ____ markets where buyers & sellers come together to buy and sell securities

Front 20

leverage

Back 20

borrowing money to buy stock

Front 21

does preferred have voting rights?

Back 21

no

Front 22

does common have voting rights?

Back 22

yes