Stock Market

17 flashcards · Economics · by Logan Pollack

1. Why do corporations sell stock?

   in order to raise funds

2. Stock is issued in portions known as shares

   Owning equities represents partial ownership of the corporation

3. Dividends

   A portion of the profits paid out to stockholders by the corporation

4. Capital Gains

   Money earned from selling stock for more than you purchased it

5. Income Stock

   pays dividends at regular times during the year

6. Growth Stock

   Usually does not pay dividends, as the company would rather reinvest the earnings into capital projects

7. Value Stock

   Stock that trades at a price below where it appears it should be

8. Common Stock

   Investors who buy this are voting owners

9. Preferred Stock

   Investors of this give up voting rights, but typically earn dividends

10. Stock Splits

    Owners of common stock may sometimes vote to initiate a stock split Usually occurs when stock prices get too high

11. What causes stock prices to change?

    Supply and Demand Earnings/Loss Investor's sentiments Technical Factos

12. Stock Exchange

    a market for buying and selling stock

13. Bear Market

    refers to a period of time where prices in the stock market decline

14. Bull Market

    refers to a period of time where prices in the stock market are rising

15. Day Trading

    the buying and selling of stock on a day by day basis

16. Day traders are active traders, who try to predict what will happen, and make money based on price movement

17. Dow Jones Industrial Average

    A stock market index, which measures the value of a section of the stock market