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What is Private investing?
- -company is owned by a few people
- -public can't by shares
- -company doesn't want their money/rules that go along with it
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What is Public investing?
- -Co. is owned by anyone who buys shares of stock
- -stock is publicly traded on a stock market
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Def. of stock
- unit of ownership in a corporation
- -business owners sells part of the ownership in the company in exchange for capitol
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Why do companies sell stock?
to raise money to grow their business
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What is IPO?
Intial Public Offering
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Who are stockholders?
Investors who own the co. because they own shares of its stocks
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What is a Stockbroker?
A person who handles the transfer of stocks/bonds b/w buyers and sellers
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What is one thing that a Stockbroker does?
Charge a commission for the service
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Def. of Capital gains?
The profit you earn from selling stocks cut at a higher price than you paid for
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How do find Capital gains?
Beginning $ that you paid for an item - the $ that you would want to sell it for
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What are Dividends?
distributions of money, stock, or other property that a corporation pays to stockholders.
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portion of corporate profits paid out to stockholders...what vocab word does this sound like?
Dividends
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Def. of Diversifying?
risk management technique, related to hedging, that mixes a wide variety of investments within a portfolio
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Def. of common stock?
Voting share that pays a dividend based on profitability
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Def. of preferred stock?
Non voting share, pays fixed dividend if company earns a profit.
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No matter how well the company preforms, they recieve the same dividend they have signed for.
What stock is this from?
Preferred
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Vote = election of the board of directors
What stock is this from?
Common
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Board:
-determines dividend
-oversee the operation of the company
-hire and fire major officials - CEO
What stock is this from?
Common
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