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92 Cards in this Set
- Front
- Back
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American Depository Receipt |
A Security issued by a U.s banker in place of the foreign shares held in trust by that bank |
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AMEX (American Stock Exchange) |
The second largest exchange in the USA (First is NYSE) |
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Auction Market |
The system of trading securities through brokers or agents on an exchange such as the NYSE |
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Averages |
Various ways of measuring the trend of securities price, DOW JONES INDUSTRIAL AVERAGE OF 30 INDUSTRIAL STOCKS |
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Basis Point |
One gradation on a 100 point scale representing 1%. |
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Bear |
One who will believes the market will decline |
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Bear Market |
A Declining Market |
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Bid and Asked |
Bid - highest price someone will pay Asked - the lowest price anyone will take |
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Block |
A large holding of 10,000 shares |
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Blue chip |
A company known nationally for their quality and the way they pay dividends and make money |
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Blue Sky Laws |
Popular name for a law enacted by many states that protects the public from fraud in stocks. (ya one stock has the value of that patch of blue sky) |
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Book Value |
Accounting term determined by Adding all assets, deducting all debts and liabilities and liquidation |
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Broker |
An agent who handles the public's orders to buy and sell securities |
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Bull |
One who believes the market will advance |
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Bull Market |
An advancing Market |
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Buy Side |
The portion of the securities business in which institutional orders originate |
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Capital Stock |
all forms of shares representing ownership refers to any stock, Common or Preferred |
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Certificate |
Paper that shows evidence of stock in a company |
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Common Stock |
Equity in a company, ownership interest, most risky, higher reward |
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Competitive Trader |
A member of the stock exchange who trades on the floor for an account with interest |
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Day Order |
an order (buy or sell) made within the day that expires at the end of the trading day |
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Dealer |
An individual or firm in the securities business who buys and sells stocks and bonds as a principal rather than an agent. |
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Diversification |
Spreading investments for greater chance of reward |
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Dividend |
Payment designed to the board to be pro rata. Preferred is fixed, common varies |
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Dollar Cost Averaging |
Buying a fixed dollar amount of an asset on a regular periodic basis |
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Down tick |
Refers to the price of a stock going down |
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Dow Theory |
A theory of market analysis based on the Dow Jones Industrial Stocks, if they rise, then the market rises |
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Ex Dividend |
Without Dividend |
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FINRA |
Financial Industry Regulatory Authority - largest non government regulatory for stocks |
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Floor |
Huge trading area for brokers on the NYSE |
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Fundamental Research |
Analysis of a company deep down, beginning with the company then going up to the market |
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Good till cancelled |
An order to buy or sell that remains in effect until it is either executed or cancelled |
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Growth Stock |
a stock of a company that receives rapid growth |
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Holding Company |
A Company that holds the majority of shares in another company |
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Index |
A statistical yardstick expressed in terms of percentages of a base of years or a year |
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IPO |
The initial public offering stock of a company just starting out in the stock market |
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Institutional Investor |
An organization whos primary purpose is to invest its own assets or those held in trust by it for others |
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Investment |
The use of using money to make money |
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Investment Banker |
Underwriter. Middleman between the corporation issuing the stocks and the investor |
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Investment Company |
A company that uses its capital to invest in others. Closed-End - readily transferred in the open market, bought and sold like regular shares Open - End - sell their own shares to investors |
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Issue |
a issue of stock, a distribution of any form a company's securities |
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Limited Order |
An order to buy or sell a specified amount stated at a specific price stock |
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Liquidation |
The process of converting assets to cash |
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Liquidity |
The ability of a market to absorb reasonable amount of buying and selling at resaonable price changes |
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Listed stock |
The stock of a company listed on the securities exchange |
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Long |
Refers to 100 shares |
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Market Order |
An order to buy a specified amount of stock at the most advantageous price |
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NASDAQ |
The National Association of Securities Dealers Automated Quotations - provide quotes on prices etc Over the Counter (OTC) |
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NYSE |
Largest Securities Exchange in America, Founded in 1792 |
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Odd Lot |
Refers to buying a set of shares less than 100 |
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Over The Counter |
A market for securities made of dealers who may not be in the Securities Exchange |
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Par |
The value of a stock assigned by the company;s charter |
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Penny Stocks |
Low priced stocks, highly speculative |
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Point |
Means $1 in stock, 10$ in bonds |
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Portfolio |
Holdings of securities an institution, business or firm |
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Preferred Stock |
A class of stock with guaranteed dividend payments over common stock. Usually Fixed Payments |
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Price to Earning Ratio |
P/E Ratio refers to how much return a stock gets compared to another |
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Prospectus |
A leaflet that outlines purchases of new stock in the SEC |
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Proxy |
Written Authorization given by a shareholder for someone else to represent him or her at a vote or meeting |
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Proxy Statement |
Information given to stockholders in conjunction with the solicitation of proxies |
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Prudent Man Rule |
An investment standard. must invest the funds money in a list of designed securities |
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Quote |
The highest bid buying prices and the lowest offered price to sell |
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Rally |
refers to the price of a stock going up following a decline |
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REIT |
Real Estate Investment Trust - Equity, Mortgage, Hybrid |
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Record Date |
The date on which you must register as a shareholder in order to have a declared dividend |
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Registered Representative |
Man / Woman who represents the investor customers |
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Registration |
Before and IPO, securities must be registered |
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Rights |
Giving the current stockholders opportunity to buy more stocks over outsiders |
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Round Lot |
refers to 100 shares |
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Seat |
membership on the stock exchange |
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SEC |
Securities Exchange Commission - established by congress to help protect investors |
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SIPC |
Non government agency, that provides funds for use , protects customers who may have funds in with them. |
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Sell Side |
The portion of the securities business in which orders are transacted |
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Settlement |
conclusion of securities transaction between a customer and a broker |
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Short Sale |
Refers to someone who borrows a stock share and sells it who believes it will decline |
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Specialist |
Member of the NYSE with 2 functions |
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Speculation |
employment of funds by a speculator |
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Speculator |
one who is willing to have high risk |
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Spin Off |
seperation of a subsidary of a company by its parent company from issuing shares in a bew company |
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Stock Split |
refers to a 3-1, outstanding shares of a company multiply |
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Stock Exchange |
An organized marketplace for securities |
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Stock Dividend |
Dividend paid in stocks rather than cash |
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Stock Ticker Symbols |
EX. ACTV (4 Letters in NYSE) NASDAQ Is more |
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Stop limit order |
A stop order that becomes a limit order after the specified stop price has been reached |
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Stop Order |
An order to buy at a price above or sell at a price below the current market |
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Street Name |
Securities held in the name of the broker instead of a customer |
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Syndicate |
A group of investment bankers |
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Technical Research |
Analysis of a market and stock based on supply and demand |
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Transfer Agent |
keeps record of everthing |
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Unlisted Stock |
A stock not listed on the Stock Exchange |
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Uptick |
refers to the price of a stock going up |
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Volume |
The number of shares or contracts traded in a security |
