Investing Stock Market Notes

  1. 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
  2. What is Public investing?
    • -Co. is owned by anyone who buys shares of stock
    • -stock is publicly traded on a stock market
  3. Def. of stock
    • unit of ownership in a corporation
    • -business owners sells part of the ownership in the company in exchange for capitol
  4. Why do companies sell stock?
    to raise money to grow their business
  5. What is IPO?
    Intial Public Offering
  6. Who are stockholders?
    Investors who own the co. because they own shares of its stocks
  7. What is a Stockbroker?
    A person who handles the transfer of stocks/bonds b/w buyers and sellers
  8. What is one thing that a Stockbroker does?
    Charge a commission for the service
  9. Def. of Capital gains?
    The profit you earn from selling stocks cut at a higher price than you paid for
  10. How do find Capital gains?
    Beginning $ that you paid for an item - the $ that you would want to sell it for
  11. What are Dividends?
    distributions of money, stock, or other property that a corporation pays to stockholders.
  12. portion of corporate profits paid out to stockholders...what vocab word does this sound like?
  13. Def. of Diversifying?
    risk management technique, related to hedging, that mixes a wide variety of investments within a portfolio
  14. Def. of common stock?
    Voting share that pays a dividend based on profitability
  15. Def. of preferred stock?
    Non voting share, pays fixed dividend if company earns a profit.
  16. No matter how well the company preforms, they recieve the same dividend they have signed for.

    What stock is this from?
  17. Vote = election of the board of directors

    What stock is this from?
  18. Board:
    -determines dividend
    -oversee the operation of the company
    -hire and fire major officials - CEO

    What stock is this from?
Card Set
Investing Stock Market Notes
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