Investment Terms

  1. Ask
    When a seller is selling a security, the ask price is the lowest price the seller will be willing to agree on for the sale.
  2. Bear Market
    A bear market refers to the time when stock prices drop for a considerable about of time in the stock market. The opposite of this type of market is known as a bull market.
  3. Bid
    When a buyer is purchasing a security, the bid price is the highest price the buyer will agree to pay for the sale.
  4. Blue-chip Company
    An international or national company whose stock maintains a solid history of growth on a consistent basis.
  5. Bond
    Businesses or governmental agencies issue these to investors in order to grow capital. Investors will receive an interest amount over a specified amount of time until the point of maturity. At this time, a mature bond will provide the investor with the amount of cash initially used in the investment.
  6. Broker
    A third party who serves as a middleman between those selling stocks and those buying stocks. A broker earns a commission amount on each transaction that is made between buyer and seller.
  7. Dividend
    The amount of money paid out to shareholders by companies for their stocks, typically using cash payments.
  8. Mutual Fund
    A company offers this kind of fund, using the money from the fund sale to purchase other investments. These funds require only a minimum investment.
  9. Portfolio
    The assortment of investments a person or business owns.
  10. Stock
    Offered by a company to buyers who wish to own a percentage of that company.
  11. Common Stock
    Shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company.
  12. Golden Share
    A golden share is a nominal share which is able to outvote all other shares in certain specified circumstances, often held by a government organization, in a government company undergoing the process of privatization and transformation into a stock-company.
  13. Preferred Stock
    Stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.
  14. Restricted Stock
    stock of a company that is not fully transferable until certain conditions have been met. Upon satisfaction of those conditions, the stock becomes transferable by the person holding the award.
  15. Trading Stock
    Merchandise held by the business for sale to customers.
  16. Authorized Capital
     the maximum amount of share capital that the company is authorized by its constitutional documents to issue (allocate) to shareholders. Part of the authorized capital can (and frequently does) remain unissued. This number can be changed by shareholders' approval. The part of the authorized capital which has been issued to shareholders is referred to as the issued share capital of the company.
  17. Issued Shares
    The quantity of shares of a corporation, which have been allocated (allotted) and are subsequently held by shareholders.
  18. Shares Outstanding
    all the shares of a corporation or financial asset that have been authorized, issued and purchased by investors and are held by them. They have rights and represent ownership in the corporation by the person that holds the shares.
  19. Treasury Stock
    Stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' holdings).
Card Set
Investment Terms
Terms relevant to investing, the stock market, and the financial markets.