Stock Basics |
#1 |
Shares of ownership in the assets and earnings of a company. |
What is a stock? |
#2 |
When a share of stock worth $100.00 becomes 2 shares of stock worth $50.00 each. |
What is a stock split? |
#3 |
The type of stock which pays fixed dividends and owners do not have voting rights. |
What is a preferred stock? |
#4 |
Dividends for each stock are stated as a percentage |
What is par value? |
#5 |
These can be paid in the form of cash, company products, property, discounts, and additional stocks. These can be paid annually, quarterly, monthly, etc. |
What are dividends? |
Common Stock |
#1 |
This type of stock is from companies who operate in major consumer dependent industries such as automobiles and airlines. |
What is a cyclical stock? |
#2 |
Jamison Industries is celebrating the company’s 100th anniversary. It dominates the industry with a long standing reputation for quality products and customer service. The type of stock Jamison Industries offers is known as |
What is a blue chip stock? |
#3 |
These companies have a spotty earning pattern, but have potential for substantial earnings in the future, pharmaceutical companies are represented by this type of stock. They are very high risk stocks |
What is a speculative Stock? |
#4 |
This is calculated by multiplying the number of outstanding shares by the current stock price. |
What is Market Capitalization? |
#5 |
Joey Vietor is 60 years old and about to retire. He has some money he would like to invest in a stock which will pay high dividends because the company chooses to retain only a small portion of its profits. The type of stock Joey should invest assumes low risk. |
What is an income stock? |
Purchasing a Stock |
#1 |
This is the largest stock exchange with the strictest company standards. |
What is the New York Stock Exchange (NYSE)? |
#2 |
The stock market is based upon this economic law. |
What is the law of supply and demand? |
#3 |
This person is licensed to buy and sell stocks, provide investment advice, and collect a commission on each purchase or sale. |
What is a broker? |
#4 |
These exchanges are in specific geographical area such as Boston, Cincinnati, Intermountain, Midwest, Philadelphia, and Spokane. |
What is a regional stock exchange? |
#5 |
This has more than 3,300 small American and foreign companies listed. The company requirements are not as strict as NYSE. |
What is NASDAQ? |