Unit 2: Personal Investing

Front 1

Bear Market

Back 1

A market characterized by falling prices and poor investing.

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Front 2

Bull Market

Back 2

A period of risking stock prices an positive investing.

Front 3

Day Trader

Back 3

A person who buys/sells stock in a short period of time.

Front 4

Stockholder

Back 4

Owners of a corporation.

Front 5

Market Order

Back 5

An order to buy/sell at its normal market price.

Front 6

Proxy

Back 6

Stockholder's written authorization to transfer voting rights to someone else, usually the

company's manager.

Front 7

Odd Lot

Back 7

Less than 100 share of stock.

Front 8

Round Lot

Back 8

Shares bought/sold in multiples of 100.

Front 9

Market Value

Back 9

Marketplace price of a stock.

Front 10

Par Value

Back 10

An assigned dollar amount that is printed on a stock certificate.

Front 11

Limit Order

Back 11

An order to buy/sell a stock only if the price is within specific limits

Front 12

Securities Exchange

Back 12

Marketplace where brokers who represent investors buy/sell securities.

Front 13

Over the Counter Market

Back 13

Network of brokers buying/selling securities of corporations that are not listed on the securities exchange.

Front 14

Speculative Investment

Back 14

Investment with a chance of making a quick profit.

Front 15

Direct Investment

Back 15

Buying stock directly from a corporation.

Front 16

Dividend Reinvestment

Back 16

Using dividends previously earned on stocks to buy more shares.

Front 17

Stock

Back 17

Unit of ownership in a corporation.

Front 18

Income Stocks

Back 18

Consistent history of paying high dividends to stockholders.

Front 19

Common Stock

Back 19

Pays a variable dividend and gives the stockholder voting rights.

Front 20

Preferred Stock

Back 20

Pays a fixed dividend and carries no voting rights for stockholders.

Front 21

Growth Stock

Back 21

Stocks in corporations that reinvest their profits into the business so it can grow.

Front 22

Blue Chip Stock

Back 22

Stocks of large, well-established corporations with a good record of making profits.

Front 23

Dividends

Back 23

Part of the corporation's profit that is paid to the stockholders.

Front 24

Percent Yield

Back 24

Percentage of the current price of the stock

dividends.

Front 25

Price/Earnings Ratio

Back 25

Price of a share of stock dividend by the corporation's earnings per share over the last year.

Front 26

Earnings per Share

Back 26

A corporation's after tax earning dividend by the number of outstanding shares of a common stock.

Front 27

Return on Investment

Back 27

Profit earned on stock as a percentage of the total cost of buying the stock.

Front 28

Stock Index

Back 28

A benchmark used to judge the performance of investments.

Front 29

Ticker Symbol

Back 29

Abbreviated term that is used to identify a stock for trading purposes.

Front 30

Stock Split

Back 30

Increase in the number of outstanding shares of a company's stock.