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29 Cards in this Set
- Front
- Back
- 3rd side (hint)
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IPO (Initial Public Offering) |
First public offering of a corporation's stock. |
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Stock Exchange |
An organization whose members buy and sell securities. |
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Investment Bankers |
Specialists who assist in the issue and sale of new securities. |
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Institutional Investors |
Large organizations that invest their own funds or the funds of others. |
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OTC (Over-the-counter) Market |
Exchange that provides a means to trade stocks not listed on the national exchanges. |
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NASDAQ |
Nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically. |
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SEC (Securities and Exchange Commission) |
Federal agency that has responsibility for regulating the various stock exchanges. |
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Prospectus |
Condensed version of economic amd financial information that a company must file with the sec before issuing stock. |
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Stock |
Shares of ownership in a company. |
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Stock Certificate |
Evidence of stock ownership |
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Dividends |
Part of a firms profits that the firm may distribute to stockholders as either cash payments or shares of stock. |
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Common Stock |
Most basic form of ownership in a firm. |
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Preferred Stock |
Stock that gives its owners preference in the payment of dividends. |
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Bond |
Corporate certificate indicating that a person has lent money to a firm. |
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Maturity Date |
Exact date the issuer of a bond must pay the principal to the bondholders. |
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Interest |
Payment the issuer of the bond makes to the bondholders for use of the borrowed money. |
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Debenture Bonds |
Bonds that are unsecured. |
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Sinking fund |
A reserve account in which the issuer of a bond periodically reutres some part of the bond principal. |
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Stockbroker |
A registered representative who works as a maeket intermediary to buy and sell securities for clients. |
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Diversification |
Buying several different investment alternativrs to spread the risk of investing. |
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Capital Gains |
Positive difference between the purchase price of a stock and it's sale price. |
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Stock splits |
Action of the company that gives stock holders two or more shares of stock for each one they own. |
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Buying stock on margin |
Purchasing stock by borrowing some of the purchase cost from the brokerage firm. |
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Junk Bonds |
High-risk, high-interest bonds. |
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Mutuak Fund |
An organization that buys stock and bonds and then selles shares in those securities to the public. |
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ETF (Exchange-traded funds) |
Collections of stocks, bonds, and other investments that are traded on exchanges |
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Dow Jones |
Average cost of 30 selected industrial stocks. Used to indicate direction of the stock market. |
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Program Trading |
Giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid potential losses. |
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Secured bonds |
Backed by collateral |
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