Stock Market Basics
A share of ownership in a company.
What is a stock?
A business that sells goods or services.
What is a company?
When stock prices increase they go this direction on a graph.
What is up?
Money you earn from a job or allowance.
What is income?
“Don’t put all your eggs in one basket” means this.
What is to diversify?
This is where stocks are bought and sold.
What is the stock market?
This type of company sells shares to the public.
What is a PUBLIC company?
When stock prices decrease this is the direction they go on a graph.
What is down?
Money you keep for later instead of spending.
What are savings?
This is the degree of uncertainty and volatility an investor is willing and able to accept regarding potential losses in exchange for higher potential returns. It acts as a "sleep at night" measure, measuring comfort with market ups and downs. Factors affecting it include age, financial goals, income, and time horizon.
What is risk tolerance?
This is a symbol made of letters that represents a company’s stock.
What is a ticker symbol?
A company like Apple that makes phones and computers is in this sector.
What is the technology or information tech sector?
This word describes when a stock’s price changes up and down frequently in a period of time.
What is volatility?
An individual who identifies a need or opportunity, initiates a new business venture, and assumes the financial risks and responsibilities in hopes of making a profit.
What is an entrepreneur?
This is a type of investment that pools money from many investors to purchase a diversified portfolio of securities like stocks, bonds, or money market instruments. Managed by professional investment advisers, they offer retail investors access to professionally managed, diversified portfolios.
What is a mutual fund?
When you buy stocks in many different companies to reduce risk.
What is diversification?
Money you earn from owning stock when a company shares its profits on a periodic basis, i.e.quarterly or annually.
What is a dividend?
The last price at which a stock is traded on a particular day
What is closing price?
An individual or group that purchases or uses goods, services, or resources for personal, family, or household purposes rather than for resale or commercial production
What is a consumer
in stocks generally means maintaining ownership of a security rather than selling it, often used by investors to ride out short-term volatility.
What is to hold?
This happens when you sell a stock for more than you paid.
What is a profit or gain?
A business owned by individuals, founders, or private investors, whose shares are not traded on public stock exchanges.
What is a private company?
Is the original value of a stock (purchase price)
What is cost basis?
Money you invest can grow over time because of this.
What is compound interest?
This tracks a group of stocks like the S&P 500 or Dow Jones Industrial Average.
What is an index?