| Stock Basics |
| #1 |
A one-three character alphabetic root symbol, which represents an issuer on the stock exchange |
stock symbol |
| #2 |
Someone who owns a stock in a corporation |
stockholder |
| #3 |
Transferable certificates of ownership of investment products such as notes, bonds, stocks, futre contracts and options are also known as |
securities |
| #4 |
A statistical measure of the state of a company's comparison of price of stock to level of company earnings |
Price to Earnings Ratio |
| #5 |
How is the price of a stock determined? |
by rule of supply and demand |
| Investment Strategies |
| #1 |
When you invest in the stock market you are taking a financial _______. Also known as the chance that an investment's return will be different than expected - including the possibility of losing your money. |
Risk |
| #2 |
Three levels of risk strategy that describe how much money you are willing to lose in the stock market or mutual funds. |
conservative, moderate, aggressive |
| #3 |
An investment strategy or risk management technique where you purchase a wide variety of stocks, bonds, mutual funds, etc. in order to yield higher return and minimize loss |
Diversification |
| #4 |
Name the three best known stock exchanges |
The NYSE, AMEX, NASDAQ |
| #5 |
The portion of corporate profits paid out to stockholders |
Dividend |
| Investment Terms and Historical Stock Market Dates |
| #1 |
Exact date of “Black Thursday” -- the day the stock market crashed and caused many Americans to lose their fortunes. This crash led to the “Great Depression” |
October 24, 1929 |
| #2 |
The concept of a stock market originated in what country during what century? |
12th century France |
| #3 |
A pool of funds collected from many investors for the purpose of investing in securities |
Mutual Fund |
| #4 |
financial product sold by financial institutions designed to accept and grow funds from an individual and then pay out a stream of payments at a later point in time |
annuity |
| #5 |
A savings certificate with a maturity date and fixed interest rate which entitles the bearer to receive interest |
Certificate of Deposit or CD |
| Types of Stocks and Savings Vehicles |
| #1 |
A type of stock which usually entitles the owner to a vote at shareholder meetings and to sometimes receive dividends. Most stocks are issued as this type. |
Common stock |
| #2 |
If you have this type of stock you have a higher claim on assets and earnings and receive dividends before common stock holders. |
Preferred Stock |
| #3 |
Low-priced, speculative and risky securities which are traded over-the-counter |
Penny Stocks |
| #4 |
A savings plan which employers establish to allow employees to dedicate a portion of their wage to this tax-deferred fund. Employers may also choose to add money to the fund for that employee. |
401K |
| #5 |
A retirement fund established by an individual to earn and earmark funds for retirement. They are allowed to contribute a set maximum amount. |
IRA - Individual Retirement Account |
